The Paris Air Show in June is traditionally the venue to announce big aircraft orders, but President Xi Jinping saved the signing of a huge Airbus order for his visit to Berlin ahead of the G20 Summit in Hamburg.

In Berlin on July 5, China Aviation Supplies Holding Company (CAS) signed a General Terms Agreement with Airbus for the purchase of a total of 140 aircraft. The order could be worth up to US$23 billion at list prices, depending on the exact models delivered, though discounts of 40% to 50% are common for large orders.

President Xi Jinping and Chancellor Angela Merkel witness Airbus signing.

The agreement involves 100 narrowbody A320 family aircraft, and 40 A350 XWB family aircraft, reflecting the strong demand of Chinese airlines in all market segments including domestic, low cost, regional and international long haul. The widebody A350 XWB can carry between 280 and 366 passengers in a three-class configuration, depending on model.

The agreement was signed in Berlin by Airbus CEO Tom Enders and Sun Bo, executive vice president of CAS, in the presence of President Xi and German Chancellor Angela Merkel.

China Aviation Supplies Holding Company was established in October 2002 and is one of six holding companies of the China Civil Aviation Administration. The aircraft will be leased to Chinese carriers. The company also offers aircraft trading, sale-leaseback, asset management and equipment engineering services.

Since its establishment, CAS has entered into a series of fourteen framework agreements with Airbus and Boeing. Its predecessor was China Aviation Supplies Import & Export Group Corporation, which was founded in 1980 and was the first company established by China Civil Aviation Administration.

The global fleet of passenger aircraft with more than 100 seats is set to more than double in the next 20 years to over 40,000. China will eventually become the world’s largest domestic aviation market.

By the end of May 2017, the Airbus fleet with Chinese operators totalled some 1,440 aircraft, of which nearly 1,230 are A320 family. Chinese carriers are also already flying the A350 XWB, which is powered by Rolls Royce Trent XWB engines.