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Airbus orders are flying high

In tough times Airbus sells figures are still strong with China’s domestic travel having a steady increase in travel. Political tensions between China and U.S. over Boeing and the sale of defense weapons to Taiwan, a former state of China, is thought to be a additional reason to go with Airbus. Air China LTD, China’s largest and government airline, agreed to purchase 20 Airbus 320 aircrafts from EADS, the parent company of Airbus. The 20 A320 aircrafts will increase Air China’s fleet by 5%, and allow for expansion of new routes in Eastern China. The A320’s are to be delivered in stages between 2011 and 2014. The list price is $1.63 billion, but usually when a company buys multiple aircraft heavy discounts apply, not to mention the economic state. A lot of airlines in China are fighting for market growth with an increase in travel in China. Last month, China Southern Airlines agreed to buy 20 Airbus A320 aircrafts at a significant discount for delivery between 2011 and 2013, according to EADS officials.

Hong Kong Airlines has signed a “Memorandum of Understanding” with Airbus for six A330-200 aircraft. "The A330-200 offers the perfect range and size capability to enable us to expand into new medium and long haul markets," said Yang Jian Hong, President, Hong Kong Airlines. Last year Chinese deliveries accounted for about 16% of worldwide total sales.Domestic passenger travel is expected to grow in China, and her 3 largest airlines have plans to expand seat capacity this year by an average of 10%, according to the Financial Times.