China Is Delaying Approvals of Airbus Deliveries

Summary

China has been delaying final approvals for Airbus plane deliveries to pressure European regulators to certify the Chinese-made Comac C919 jet. The impasse has caused Airbus deliveries to China to drop sharply, but recent signs suggest a potential resolution as Airbus CEO visited China and orders continue.

• China is stalling Airbus deliveries to signal displeasure over slow European certification of the Comac C919.
• Airbus first-quarter deliveries fell to the lowest since 2009, and China-bound aircraft collapsed to 16 in five months versus 47 a year earlier.
• Airbus CEO Guy Johnson visited China in April to break the impasse and expects administrative issues cleared by end of June.
• Despite tensions, Airbus has won hundreds of plane orders from Chinese airlines, indicating a possible normalization.
• Monthly delivery numbers to China will be watched closely to see if relations are truly back on track.