NICHOLAS IONIDES / SINGAPORE
Airbus is close to a major breakthrough in China with its first sale of A330 widebodies in the market, to China Southern Airlines. The carrier is also finalising a related deal for 20 more A320 family narrowbodies.
Industry sources say China Southern, the country's largest airline, recently took a firm decision to order A330 twinjets, although it is unclear whether they will be -200s or -300s. The sources add that the deal, which requires central government approval, covers around four of the type, for delivery from 2004.
The follow-on A320-family order will be for 20 aircraft, the sources say, including six A319s and 14 A320s. The A320s may be swapped for larger A321s, and deliveries are due to begin in late 2004 - provided government approval is secured.
China Southern has not decided which engines will power its A330s and a three-way competition is now on between General Electric, Pratt & Whitney and Rolls-Royce.
The airline declines to comment, saying only: "We are doing a feasibility study on fleet planning."
Airbus has for years been trying to place A330s in China, but so far Boeing has dominated the market segment with 767 and 777 sales. China Southwest Airlines, which is now controlled by Air China, and China Eastern Airlines both operate four-engined A340-300s, however. China Eastern also has A340-600s on firm order and has long been seen by Airbus as a potential A330 customer.
One independent observer says the China Southern A330 deal represents "a real coup for Airbus". The carrier's evaluation only lasted a few weeks, the sources say.
China Southern's widebody passenger fleet comprises nine General Electric GE90-powered 777-200s and -200ERs, some of which are leased from International Lease Finance (ILFC). It has one more 777-200ER on order with ILFC for delivery in March 2004.
The carrier is already a major Airbus operator with 20 International Aero Engines (IAE) V2500-powered A320s in service and four smaller A319s on order with ILFC. The ILFC-leased A319s will also be powered by V2500s, giving IAE an edge over CFM International in the contest to power the additional single-aisle aircraft being ordered.
Additional reporting by Andrew Doyle in Singapore
Source: Flight International
