[Global Focus] '472 to 0'... US Boeing in Distress Over China's Retaliation

Airbus Riding Updraft Secures KRW 80 Trillion Orders in China This Year
China Intentionally Excludes Boeing Amid US-China Tensions... Only 737 Max Reflight Approval Granted

[Asia Economy Senior Reporter Cho Young-shin] European Airbus has secured orders for a total of 472 new aircraft in China this year. In contrast, American Boeing has not secured a single order. Boeing, known as one of the two giants in the global commercial aircraft market, is inevitably in a difficult situation.

Chinese media are boasting about their own China money, saying that Boeing cannot secure orders in China due to the US-China conflict. They are openly showing economic retaliation against the United States.

Airbus monopolizes the Chinese aviation market

On the 4th, coinciding with German Chancellor Olaf Scholz's visit to China, Airbus purchased 140 passenger aircraft (132 A320s, 8 A350s). The amount reached $17 billion (23 trillion KRW).

Earlier, China Eastern Airlines, China Southern Airlines, and Air China collectively ordered 292 A320s (50 trillion KRW) in July. Also, in September, Xiamen Airlines ordered 40 A320neos (6.3 trillion KRW). Xiamen Airlines had only used Boeing aircraft until now. In this case, all pilots (pilots holding A320 licenses) must be replaced, and separate training for ground maintenance personnel is required. Xiamen Airlines is based in Fujian Province, the closest to Taiwan.

This year, Airbus has secured orders for a total of 472 passenger aircraft in China, amounting to 80 trillion KRW. Boeing's passenger aircraft orders in China this year are zero. The only thing Boeing received was the re-operation approval for the B737 Max, which had been suspended by the Chinese Civil Aviation Administration. It is uncertain how many of the pre-accident contracted aircraft will be delivered.

Airbus also eyes the Chinese cargo aircraft market

As Airbus orders increase, Airbus's market share in China is also soaring.

Xu Gang, CEO of Airbus China, said in an interview with Chinese media on the 8th, "As of the end of September, there are 2,097 Airbus aircraft operating in mainland China, with a market share of 54%." He added that 84 new passenger aircraft were delivered to China this year (as of the end of September). Assuming the total number of passenger aircraft in China remains unchanged as of the end of September, applying the additional 472 orders results in Airbus's market share exceeding 66%.

The Civil Aviation Administration of China predicts that passenger transport volume in China will reach 930 million by 2025, a 20% increase compared to last year. The aviation industry expects that by 2040, the demand for passenger aircraft in mainland China will exceed 8,000 units, requiring 400 new aircraft annually.

Airbus also expressed expectations for the new cargo aircraft A350F. Airbus estimates that by 2041, the demand for cargo aircraft in China will exceed 690 units, more than three times the current number. This accounts for 20% of the global cargo aircraft.

CEO Xu said, "The next-generation A350F cargo aircraft being developed by Airbus will be introduced to the global market in 2025," adding that Airbus will supply cargo aircraft suitable for the Chinese market, ranging from small to large cargo planes.

[Image source=Reuters Yonhap News]

Boeing is anxious

Since the US-China trade conflict began in 2018, Boeing has not achieved significant results in China. Moreover, after the B737 Max accident, Boeing's business in China has collapsed to the extent that it cannot deliver pre-contracted aircraft. However, it cannot turn its back on China, the world's largest aircraft market.

Peter Gao, Vice President of Marketing for Greater China at Boeing, said in an interview with the South China Morning Post (SCMP) on the 11th, "Despite uncertainties, China remains Boeing's largest market," and stated that there are still opportunities in the Chinese market. He added, "Boeing has world-class aircraft such as the 737 Max, 787 Dreamliner, and 777X (cargo aircraft) and hopes to continue supporting China's air transportation system."

As US-China tensions escalate and China's domestically developed C919 passenger aircraft approaches commercial flight, there are forecasts that Boeing's presence will diminish further. COMAC (Commercial Aircraft Corporation of China), a Chinese state-owned aircraft manufacturer, signed a purchase agreement for 300 C919 aircraft with seven Chinese aircraft leasing companies on the 8th. The cumulative purchase contracts amount to 1,115 units. If China channels the aircraft it needs to Airbus and some to its domestic company COMAC, Boeing's position will inevitably become narrower.

In October, Boeing predicted in its 'Commercial Market Outlook Report' that the demand for new aircraft in China will reach 8,458 units over the next 20 years.

This content was produced with the assistance of AI translation services.