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Airbus in $1.8B China order
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October 25, 1999: 7:02 a.m. ET
28-aircraft deal caps controversial presidential visit to Europe
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LONDON (CNNfn) - Airbus Industrie confirmed Monday that it had received an aircraft order worth $1.8 billion from China, boosting its lead over Boeing in global jet sales this year.
Chinese president Jiang Zemin inked the deal during weekend talks with his French counterpart, Jacques Chirac, on the latest leg of Jiang's controversial European tour.
The state-controlled Civil Aviation Administration of China (CAAC) signed a memorandum of understanding to acquire 28 Airbus aircraft, including eight long-range A340-500/600s and 20 short-haul A319s and A320s.
No firm delivery dates have been released, but industry sources suggested the aircraft will be placed with the country's three largest carriers, state-owned Air China, China Southern (ZNH) and China Eastern (CEA).
The Chinese government had placed a freeze on new aircraft orders in 1997 after the rapid growth of the country's airline industry led to widespread safety concerns.
Though the Chinese domestic market shrank last year after fare discounting was banned, growth has picked up and short-haul aircraft are in particularly short supply.
Jiang's European state visits have been marked by large-scale demonstrations against China's human rights record. Critics have claimed the record is being ignored by governments anxious to protect trading links.
Airbus, a consortium between DaimlerChrysler Aerospace (Dasa), Aérospatiale-Matra, British Aerospace (BA) and Casa, is leading arch-rival Boeing (BA) by about two to one in terms of firm aircraft orders this year.
Dasa and its French partner announced plans to merge earlier this month. 
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