China Aircraft Leasing Group Buys 50 Airbus Jets

China Aircraft Leasing Group Holdings Ltd. has agreed to buy 50 single-aisle jetliners from Airbus SE to meet demand in the country’s booming market.

The 50 Airbus A320neo aircraft, which at list price have a total value of $5.42 billion, will be delivered to the company in stages in 2023, the Hong Kong-based lessor said in a statement on Friday. With this incremental order, China Aircraft Leasing will have 202 outstanding orders with the French airliner manufacturer.

“This bulk purchase will significantly expand China Aircraft Leasing’s fleet portfolio and further solidify our position as a full value-chain aircraft solutions provider,” said Mike Poon, CEO of the lessor, which already owns 50 other airliners from Airbus rival Boeing Co.

China Aircraft Leasing’s purchase comes at a time when the Chinese mainland’s aviation market — on its way to being the largest in the world — is booming.

In a September report, Boeing forecast that China’s commercial airlines will buy as many as 7,240 new aircraft worth about $1.1 trillion over the next two decades.

Within 20 years, China will account for almost 20% of global demand for new airliners, the report said.

In November, China Aviation Supplies Holding Co. announced it had agreed to buy 300 aircraft, including 260 narrow-body jets, from Boeing during U.S. President Donald Trump’s visit in Beijing. At list prices, the order is worth approximately $38 billion.

China’s aviation market is currently dominated by Boeing and Airbus. But over the last few years, Beijing has been ramping up efforts to develop its domestic aviation industry to crack the duopoly.

In May, the C919 — built and designed by the state-owned Commercial Aircraft Corp. of China — made its maiden flight. And earlier this month, China’s domestically developed AG600 – billed as the world’s largest amphibious aircraft — completed its first flight.

Additionally, China and the European Union last month agreed to recognize each other’s aircraft product-safety standards — a move that came one month after Beijing inked a similar deal with the U.S.

Contact reporter Mo Yelin (yelinmo@caixin.com)