Why did the three major available "group purchase" orders? Why choose Airbus?

The largest order in the history of China's three largest aviation central enterprises, and the European aircraft manufacturing giant air passenger cars have aroused widespread attention in the industry.

On the evening of July 1, Southern Airlines (600029.SH), Air China (60111.SH) and China China Eastern Airlines (600115.SH) successively announced that they planned to purchase 292 Airbus A320NEO passenger aircraft, with a catalog price of US $ 37.257 billion, and converted into it. RMB more than 240 billion yuan.

The three major airline announcements showed that the amount of contract transaction of the aircraft purchased was determined by the contract signed by both parties with fair consultation. In the actual transaction, Airbus will give a large discount to airlines, so the actual price of this aircraft will be lower than the above basic prices.

According to Surging News reporters, the three major voyage announcements found that the transactions were the largest number and the highest order amount of the number of aircraft purchases in the history of the three major aircraft.

Why did the Sanda Airlines throw the largest order in history? Why does this "group purchase" order choose Airbus A320NEO? What does this order mean the biggest competitor Boeing for Airbus?

Why did the three major flights sign the largest order in the history of this node?

China Southern Airlines, Air China, and China Eastern Airlines are the three major airline central enterprises in my country, and their business volume occupies half of the country in China. In 2021, the total turnover of the three major airlines and its subsidiaries accounted for more than 66.3%of the total transportation weekly turnover of each airline company, reaching 66.3%. The operating income of the three major airlines totaled 243.303 billion yuan, accounting for 57.31%of the total revenue of domestic airlines.

Why did the three major aviation central enterprises jointly buy the plane at this time?

Screenshot of the Statistics of the Development of Civil Aviation Industry in 2021

"This order node, for the airline company, has a greater price advantage for vertical comparison." Civil Aviation expert Li Hanming told reporters that excess capacity caused by the epidemic in the aircraft sales industry at the moment At present, the required models required for nodes will be greater, and it will also show the confidence of the three voyages to increase the demand for travel demand at home and abroad after 2024.

According to the announcement, the 292 passenger planes planned to be purchased this time are relatively close to the delivery time. They are delivered in batches. The delivery was first delivered in 2024, and the delivery was completed at the latest until 2027.

An internal personnel of the Airbus revealed to reporters that there were many global orders of more than a hundred Airbus last year. The orders of the three major airlines are not the largest number and amount of Airbus in recent years.

Qiao Shanxun, Secretary -General of the Expert Committee of the Henan Aviation Industry Association and researcher at the Henan Coordinated Innovation Center of the Aviation Economic Development, told reporters that the three major airlines to buy aircraft together are more like a "group purchase" activity. The price may be lower than a single talk. Essence "At present, the global aviation market has been repaired, and long -term growth cannot be ignored for short -term fluctuations. Now buying new passenger planes is also planning and reserving fleet capacity in advance."

China Eastern said in the announcement that under the circumstances that the aviation market has not fully recovered, the company's introduction of aircraft is conducive to better business conditions. Essence

The order is also prepared for the narrow body update of the three major airlines. China Eastern said that during the introduction of aircraft delivery, some of the company's narrow -body aircraft will withdraw from the age and lease expires. Therefore, the order will partially plays a role in replacement and update of the existing models. China Southern said that the order will increase the capacity of China Southern Airlines about 13.0%. The orders between Air China and Shenzhen Airlines will increase the capacity of Air China Group about 10.4%.

In addition, Li Hanming also mentioned that in the first half of this year, the epidemic was distributed and there was a summer blessing in the second half of the year. Therefore, the purchase agreement was signed in the second half of the year, or it was also considered that the performance pressure of the three major airlines did not increase.

In terms of the source of funds and payment methods of transactions, the three voyages say that the transaction amount will be paid in installments and is expected to have a significant impact on the company's cash flow status and business operations.

Last year, domestic airlines lost 67.09 billion yuan, a loss of 14.92 billion yuan over the previous year. Among them, the net loss attributable to shareholders of listed companies last year continued to expand, with a total net loss of 40.959 billion yuan, accounting for more than 60 % of the total loss of the entire airline. In the first quarter of this year, the total revenue of the three voyages in the first quarter was 47.054 billion yuan, and the total loss was 21.156 billion yuan.

Why is the largest order in the three major aviation history selected Airbus A320neo series aircraft?

Even if there is a good opportunity to make a good job now, why would the three major aircraft choose this narrow body A320NEO of Airbus?

The A320NEO series aircraft is the latest generation of the Airbus narrow -body machine model. It is the best -selling A320 series aircraft for the new engine option. It is also the fist product of Airbus in the single -channel narrow body market.

Single -channel narrow -bodies are the main passenger aircraft of domestic and short -range international routes. As of the end of 2021, the number of transportation aircraft at the end of the civil aviation industry was 4054 at the end of the number of volumes, of which the number of narrow -body aircraft was 3178, accounting for nearly 80 % of the transport fleets.

Screenshot of the Statistics of the Development of Civil Aviation Industry in 2021

Qiao Shanxun introduced to reporters that domestic airlines have strong demand for narrow -bodied aircraft, and the three major airlines also have a large narrow -bodied fleet. At present, the proportion of narrow -body aircraft is 7 to 90 %. Update requirements for other areas.

The Airbus A320 and Boeing 737 are the two most popular models of the global single -channel passenger aircraft. This is also one of the most intense markets for Airbus and old American aircraft manufacturers Boeing. In 2021, Airbus delivered a total of 611 passenger planes. In the same year, Boeing only delivered 340. Airbus has become the world's largest aircraft manufacturer for three consecutive years. After the Boeing 737MAX accident occurred, the Airbus has a tendency to monopolize in the single -channel passenger aircraft market.

It is worth noting that in 2021, the Airbus A320NEO series aircraft received 661 new orders. This time, 292 orders for central enterprises in China's three major airlines were equivalent to 44%of the total number of orders for Airbus last year.

The competitors of the A320NEO series aircraft include Boeing 737 MAX and the C919 of COMAC. As of the end of March this year, Airbus has delivered more than 2000 A320neo series aircraft to customers. Airbus said A320NEO has occupied 60%of the market share.

According to Airbus, the number of seats in the A320NEO series ranges from 120 to 220 (under the traditional two-class level), and the range is based on 6400-8700 kilometers according to different models. Compared with the current A320 series aircraft, the A320NEO can reduce the fuel consumption and carbon dioxide emissions by 20%, the cost of 5%of the body maintenance and 14%single cash operating costs. Compared with the competitive models of the same level, the A320NEO has 4%to 6%of a single -seater fuel consumption advantage, and A321NEO's single -seater fuel consumption advantage can reach 7%.

What does Boeing 737 MAX and Shangfei C919 mean?

It should be pointed out that at present, the Chinese Civil Aviation Administration has not fully approved the Boeing 737 MAX to resume. In October 2018 and March 2019, two consecutive air crash accidents occurred in Hoeing 737 MAX8 aircraft in half a year. Multi -countries have announced the suspension of the commercial operation of Boeing 737 Max8 aircraft.

Right now, the Boeing 737 MAX has been approved by airlines, and subsequent domestic airlines also need to complete aircraft modification, stopping aircraft recovery, driver training and other tasks. At the end of last year, the Civil Aviation Administration said that after qualified approval, it is expected to restore the commercial operations of existing domestic fleets at the end of 2021 or early 2022, and restart the introduction of new aircraft.

The C919 is a large jet passenger aircraft developed by my country's self -developed and independent intellectual property rights. At present, the C919 test flight obtaining evidence collection and delivery preparations are still promoting in an orderly manner. During the Shanghai Two Sessions in 2022, Wu Yongliang, a member of the Shanghai CPPCC, deputy general manager of China Commercial Aircraft Co., Ltd., and chief accountant, revealed in an interview with surging news that it is expected to be delivered in 2022. "The specific delivery will wait until the evidence is completed."

Regarding the influence of the Airbus order on the development of the C919 in the domestic market, civil aviation expert Lin Zhijie pointed out that the total order of 292 aircraft is equivalent to the number of aircraft introduction in the industry before the epidemic. The quantity cannot meet the power needs of the airline company in the next few years. In the future, Chinese airlines also need to buy more aircraft.

Yang Yang, deputy general manager of the Marketing Center of China COMAC, stated at the Zhuhai Air Show at the end of September last year that the aviation market has a large demand for industrialization, relying on Boeing and Airbus's production capacity to meet the current needs of the current aircraft. It may be booked for 5 years, 10 years. Therefore, the COSCO C919 is a global market. It must be a new choice for the aviation transportation industry. The airline customers should be the biggest beneficiaries.

Source: Surging News reporter Shao Bingyan

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