AIRBUS took a step Friday towards opening a second plant in China by signing a letter of intent with Chinese authorities to set up a cabin completion center for its wide-body A330 jets.
The tentative agreement, signed in Berlin during a visit by Chinese Premier Li Keqiang, coincided with a deal to sell 70 smaller A320-family jets worth US$7 billion at list prices.
The world’s second-largest planemaker after U.S. rival Boeing has been in talks for some time to try to expand its footprint in China as a way of supporting sales of its A330 jetliner to the world’s fastest-growing aviation market.
Airbus already assembles some of its A320-family aircraft in the northern port city of Tianjin, where it also plans to bring virtually completed A330s to have their cabins fitted for the Chinese market if the two sides reach a definitive agreement.
However, industry analysts say the move depends on winning support from Chinese airlines for a dedicated regional version of its A330 for the busy domestic market, which in turn faces competition from Boeing.
(SD-Agencies)
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