Air China, Shenzhen Airlines order 55 Airbus jets worth $12.4 billion

• The A350-900 jets are valued at approximately $6.09 billion (list price) and will be delivered between 2030-2032, while the A320neo family aircraft are worth about $6.35 billion and scheduled for 2029-2032 delivery
• Actual transaction prices will be significantly lower than list values due to standard industry discounts from Airbus, with financing coming from a mix of airline funds, commercial bank loans, and other arrangements
• The purchase is part of Chinese carriers' continued fleet rebuilding and expansion following the pandemic, aimed at optimizing fleet structure, improving operational efficiency, and reducing costs

Air China and Shenzhen Airlines Order 55 Airbus Jets Worth $12.4 Billion

Air China and its subsidiary Shenzhen Airlines announced a major aircraft purchase totaling $12.4 billion at list prices, underscoring China's aviation sector recovery and fleet modernization efforts post-pandemic.

Order Breakdown:

• Air China: 15 A350-900 wide-body jets (list value ~$6.09 billion)
• Shenzhen Airlines: 40 A320neo-family narrow-body aircraft (list value ~$6.35 billion)

Delivery Timeline:

The A350-900s are scheduled for delivery between 2030-2032, while the A320neo family aircraft will arrive between 2029-2032.

Financial Structure:

Air China disclosed that actual transaction prices will be significantly lower than list values due to standard industry discounts from Airbus. Financing will combine internal funds, commercial bank loans, and other arrangements.

Strategic Rationale:

The purchase aims to optimize fleet structure, expand route networks, improve operational efficiency, and reduce costs through more fuel-efficient aircraft. This reflects China's flag carrier expanding capacity as the domestic aviation market continues rebuilding from pandemic disruptions.

Market Context:

The A320neo family competes directly with Boeing's 737 MAX in the medium-haul segment, while the A350-900 serves long-haul international routes. This order reinforces Airbus's strong position in the Chinese market and represents continued momentum for Chinese carriers' fleet expansion.

The announcement highlights robust demand in China's aviation sector and signals confidence in long-term traffic growth, despite the extended delivery timeline stretching into the early 2030s.