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Airbus mulls plane assembly in China
(Reuters/AFP)
Updated: 2005-12-05 06:28
The A380, capable of seating 555 passengers on its twin decks in standard
format, is Airbus's 21st-century flagship and China has already bought five in
time for the 2008 Olympics.
But the single-aisle A320 family -- actually four aircraft seating 107 to 185
passengers -- is the workhorse series that provides the Toulouse-based firm most
of its orders and profits.
Premier Wen Jiabao
(2nd L) holds a model of the Airbus A380 plane during a visit to an Airbus
plant with head of the A380 programme Charles Champion (R) and EADS
Co-Chief Executive Noel Forgeard (2nd R) in Toulouse, southwestern France
December 4, 2005. [Reuters] | Asian demand and a
host of new low-cost airlines have shielded Airbus and its only major rival
Boeing from the fallout from U.S. airlines bankruptcies this year. The two
companies are set for a record year despite a trade row over subsidies.
The possible Airbus order matches Boeing's 70-jet deal agreed before U.S.
President George W. Bush's visit to China in November -- seen as evidence that
China is unwilling to let either side dictate terms in a fiercely competitive
market.
IMPROVED TIES
French President Jacques Chirac is keen to gain France a firm footing in a
country of 1.3 billion people that has rapidly become a vast new hunting ground
where governments and big business are vying for access.
Political ties have steadily improved after a severe rift in the 1990s
following the 1991 sale of French frigates to Taiwan. But France wants to
develop economic and trade contacts faster.
The program of Wen's visit also fueled speculation of deals for Eurocopter,
the world's largest civilian helicopter firm which like Airbus is owned by
European aerospace group EADS (EAD.PA), and equipment maker Alcatel's (CGEP.PA)
space unit.
Wen is due to sign commercial contracts after talks with Villepin on Monday.
Nuclear energy is likely to feature in discussions, but
Wen told Le Figaro he hoped France would sweeten its proposals. China is
deciding whether to buy French, American or Russian technology to build four
nuclear reactors for $8 billion.
Wen is due to go on to Slovakia, the Czech Republic and Portugal when he
leaves France on Wednesday.
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