As per Reuters, China is proposing to place an order of dozens of Airbus jetliners during a visit by Premier Wen Jiabao to Berlin, but dispute over the aviation of carbon tariffs between Bejing and Europe is over-clouding the success of the deals.
Sources revealed that a Chinese leasing firm could, in one setting order over 60 A320 aircraft, having worth of about $5 billion at list prices.
But other people related with this matter stated the type and value of deals had not negotiated yet.
Airbus (EAD.PA) refused to make any statement on this.
A series of deals were contracted between Britain and China having a worth of $2.3 billion during the premier’s visit there later this day.
China delayed the announcement of a $3.8 billion order for 10 Airbus A380 superjumbo jets at the Paris Air Show to protest over EU emissions trading rules.
Under plans to include international aviation in its carbon market from next year, the EU has laid down rules for all airlines flying to Europe to buy permits for each tonne of carbon dioxide they emit above a certain cap.
Air transport body IATA opposes to this calling the proposed scheme to be illegal and industry players, like German airline Lufthansa (LHAG.DE), say that China has threatened retaliatory measures if the EU pushes through its plans.
But China continues to put a halt on huge orders of European wide-body aircraft, and the week’s visit will be demonstrating whether the row has spilled over to narrowbody A320 aircraft which China helps gather to huge traffic growth.
Although it plans to compet with the key players like Airbus and Boeing by making its own narrowbody passenger jets from the second half of this decade, China still continues to order large volumes of Airbus A320s and Boeing (BA.N) 737s to support its economic growth.
Such narrowbody airplanes have a seating capacity for about 150-160 passengers.
Airbus began assembling A320s for the Chinese market at a factory in Tianjin outside Beijing in 2009.
China typically schedules aircraft orders to coincide with political visits, but the deals are often difficult to analyze as to whether the contracts are new or not.
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