In business any mishap by your competitors is a bad move for you and they will use this given opportunity to flourish this is just what has just happened to the embattled Boeing by their much fierce competitor Airbus.
The European manufacturer didn’t specify the total value of the deal and didn’t respond to a request seeking further comment. Based on Airbus’ list prices, the planes are worth roughly $35 billion altogether, but customers typically receive significant discounts from the list prices and can get bigger reductions for huge orders. Airbus shares gained more than 1.5% in early European trading on Tuesday.
As Boeing struggles with the 737 Max crisis, its big rival Airbus has announced a huge order from China. The European plane maker said Monday that it has reached a deal to sell 300 passenger jets to Chinese airlines. The agreement was signed during Chinese President Xi Jinping’s visit to France.
The order covers 290 planes from the A320 family and 10 from the A350 line, Airbus (EADSF)said in a statement. The company said the agreement showed strong demand from all areas of China’s rapidly expanding aviation market, including “domestic, low cost, regional and international long haul.”
The massive Airbus order contrasts starkly with the problems facing Boeing, whose bestselling jetliner, the 737 Max, has been idled worldwide after being involved in two deadly crashes in less than five months. China was the first country to ground the 737 Max earlier this month following the crash of an Ethiopian Airlines flight.
The 737 Max competes directly with Airbus’ A320neo. The two single-aisle aircraft, which fly short- and medium-haul routes, have each amassed thousands of orders from carriers around the globe.