It's Not Over Yet, Folks

The seesaw sales battle between Europe's Airbus and US-manufacturer Boeing continued Monday with Chinese Prime Minister Wen Jiabao signing a deal to buy 150 Airbus aircraft after a meeting with French Prime Minister Dominique de Villepin.

The order for 150 medium-range A320-family narrowbodies was valued at about $10 billion, according to Associate Press reports. Airbus called it "the largest single order that Airbus has ever received since it entered the Chinese market two decades ago."

Likely at least as important to Airbus -- although they were diplomatic enough not to point it out -- is that the order is also nearly twice the size of Boeing's 70-plane order from Chinese airlines last month. That deal was worth $4 billion list, although it is expected both manufacturers significantly discounted planes in both deals.

The order puts Airbus within 50 aircraft of beating Boeing for the year-end sales crown, a position previously thought nearly unachievable just 24 hours ago... with a major Qantas announcement still expected by the end of the year, that could go either Boeing's or Airbus's way.

The A319s, A320s and A321s will go to Air China, China Eastern Airlines, China Southern Airlines, Sichuan Airlines, Shenzhen Airlines and Hainan Airlines.

The deal was announced as part of a ceremonial signing in France of several contracts between Chinese and European companies, including a joint-development contract between Eurocopter and a Chinese partner for development of a six-ton helicopter.  Wen is visiting the country, and also toured the Toulouse plant where Airbus builds the mammoth A380.

Wen also presided over the signing of a cooperation agreement between the European aerospace consortium and China's National Development and Reform commission, that could lead to Airbus opening a Chinese production facility for the A320 family, the workhorse of Airbus's fleet.

FMI: www.airbus.com