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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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