China Commits to 120 Airbus Jets During Chancellor Merz’s Visit

German Chancellor Friedrich Merz has secured a commitment from the Chinese government to purchase up to 120 additional aircraft from European aerospace manufacturer Airbus. The announcement was made on Wednesday, February 25, 2026, during the Chancellor’s inaugural state visit to Beijing, where he met with Chinese President Xi Jinping and Premier Li Qiang.

According to reporting by Euronews, the agreement serves as a central economic achievement of the diplomatic mission, which aims to deepen ties between the two major economies while addressing ongoing trade disparities. The deal underscores the continued reliance of Chinese carriers on European aerospace technology amidst a complex geopolitical landscape.

Details of the Agreement

Following a dinner meeting with President Xi, Chancellor Merz confirmed to reporters that Beijing intends to place Orders for a significant number of jets. While the specific breakdown of aircraft models, such as the single-aisle A320neo family versus wide-body A350s, was not immediately detailed in the initial reports, the total volume is quantified at “up to 120 units.”

Industry data suggests that a deal of this magnitude, assuming a standard mix of single-aisle jets, could carry a list price value of approximately $15 billion to $16 billion, though Airlines typically negotiate significant discounts for bulk orders. Crucially, Merz emphasized that these are “additional” aircraft, distinct from the approximately 145 firm orders placed by Chinese carriers in late 2025 and January 2026.

Addressing the Trade Deficit

The aerospace agreement comes at a time when Germany is seeking to “reset” its economic relationship with China. Reports indicate that Germany is currently grappling with a record trade deficit with China, which reached approximately €89 billion ($105 billion) in 2025. Merz noted that this figure has quadrupled since 2020.

During the visit, the Chancellor pressed for “fair, balanced, and reciprocal” trade terms. The purchase of 120 Airbus jets is widely interpreted by analysts as a gesture from Beijing to help narrow this gap and demonstrate that economic engagement remains mutually beneficial.

“The Chinese leadership will be ordering a larger number of additional aircraft from Airbus.”

, Chancellor Friedrich Merz, via press remarks in Beijing

Strategic Context and Market Impact

This announcement reinforces Airbus’s dominant position in the Chinese aviation market, where it held a market share exceeding 50% entering 2026. The European Manufacturers delivered approximately 790 aircraft globally in 2025, outpacing its American rival Boeing. The expansion of Airbus’s local production capabilities, including the second Final Assembly Line (FAL) in Tianjin, has further incentivized local procurement.

AirPro News Analysis

The Geopolitical “Tightrope”

While the headline number of 120 aircraft is a significant industrial win for Europe, we believe the timing of this deal is as political as it is commercial. With global trade tensions rising and the potential for shifts in U.S. trade policy later this spring, Beijing appears to be utilizing “checkbook diplomacy” to secure European neutrality.

By locking in long-term supply chains with Airbus, China mitigates the risk of potential sanctions or tariff wars that could impact Boeing deliveries. For Chancellor Merz, this deal offers a tangible domestic victory, proving that his administration can secure high-value Contracts for European industry even while taking a firmer stance on systemic rivalries and trade imbalances.

Frequently Asked Questions

What is the value of the deal?
While no official contract value was released, industry estimates place the list price value between $15 billion and $16 billion, depending on the final mix of aircraft models.

Are these new orders?
Yes. Chancellor Merz explicitly categorized these as “additional” aircraft, separate from the ~145 orders placed by Chinese airlines in late 2025 and early 2026.

Who are the key figures involved?
The agreement was reached following meetings between German Chancellor Friedrich Merz, Chinese President Xi Jinping, and Chinese Premier Li Qiang.

Sources

• Euronews
• Evelyn Ann-Marie Dom

This article summarizes reporting by Reuters and includes data from public trade records.

Brazil Welcomes Removal of U.S. Aircraft Tariffs, Restoring Duty-Free Status for Embraer

The Brazilian government has officially welcomed a decision by the United States to eliminate import tariffs on Brazilian aircraft, effectively restoring a “zero-tariff” trade relationship for the aerospace sector. According to reporting by Reuters, the move reduces the duty on Brazilian jets entering the U.S. from 10% to zero, a significant shift following months of volatile trade policy.

The decision comes in the wake of a pivotal U.S. Supreme Court ruling on February 20, 2026, which struck down previous broad tariff structures. In response, the U.S. administration pivoted to a new strategy under Section 122 of the Trade Act of 1974. While this new measure imposes temporary global tariffs on many goods, civil aircraft, engines, and parts were specifically listed as exempt, providing immediate relief to Brazilian planemaker Embraer and its U.S. customers.

This policy shift marks a return to the status quo that existed for over 45 years prior to April 2025, during which the U.S. and Brazil traded civil aviation products duty-free. The reinstatement of this status is expected to have widespread implications for the regional airline market in the United States.

Impact on Embraer and Global Competition

The removal of the 10% levy is a major victory for Embraer, Brazil’s leading exporter of high-value manufactured goods. For the past year, the tariff placed Embraer at a price disadvantage compared to its primary competitors, such as Canada’s Bombardier and France’s Dassault, whose business jets continued to enter the U.S. market duty-free.

According to trade data, aircraft represent Brazil’s third-largest export to the United States, valued at approximately $1.41 billion in the first half of 2025 alone. Brazilian Vice President and Minister of Development Geraldo Alckmin praised the decision, noting that it restores “competitive parity” for Brazilian industry.

Relief for U.S. Regional Carriers

The exemption is also a critical development for U.S. regional airlines. Carriers such as SkyWest, Republic Airways, and American Airlines rely heavily on Embraer’s E175 jets to operate their regional networks. Industry analysts have noted that these airlines faced the prospect of deferring deliveries or absorbing higher costs under the previous tariff regime.

By exempting civil aircraft from the new Section 122 measures, the U.S. administration has ensured a steady supply of regional jets required to replace aging fleets without imposing inflationary costs on domestic carriers.

Legal Context and Future Uncertainty

The legal landscape surrounding this decision remains complex. The exemption was triggered after the Supreme Court ruled in Trump v. CASA, Inc. that the executive branch lacked the authority to impose the previous tariff structures under the International Emergency Economic Powers Act (IEEPA). Consequently, the administration invoked Section 122 to maintain trade pressure while carving out exemptions for critical sectors like aerospace.

However, legal experts warn that this relief may be temporary. The tariffs implemented under Section 122 are legally limited to a duration of 150 days, set to expire in July 2026. Furthermore, the administration has indicated that an investigation into Brazil’s trade practices under Section 301 is ongoing, which could lead to targeted tariffs in the future.

“Now it seems we have a window at least where we can import these aircraft free from tariffs. The question is how long that window will last.”

Tobias Kleitman, President of TVPX, via industry reports

AirPro News Analysis

We view this exemption as a pragmatic concession by Washington rather than a purely diplomatic gesture toward Brazil. The U.S. regional aviation market is structurally dependent on the Embraer E175; there is currently no U.S.-manufactured alternative that meets the scope clause requirements of major pilot contracts. Penalizing Embraer imports would have disproportionately harmed U.S. airlines and the traveling public in smaller markets.

While the immediate threat has passed, the 150-day clock on Section 122 measures creates a “sunset horizon.” We advise stakeholders to accelerate deliveries where possible before July 2026, as the long-term trade framework between the U.S. and Brazil remains unsettled.

Frequently Asked Questions

What was the previous tariff rate?
Between April 2025 and February 2026, Brazilian aircraft imports were subject to a 10% tariff.

Why was the tariff removed?
A Supreme Court ruling invalidated the previous tariff authority. The administration subsequently issued new temporary measures that specifically exempted civil aircraft.

Does this affect private jets?
Yes. The exemption covers civil aircraft, which includes executive jets like Embraer’s Praetor and Phenom series.

Sources

• Reuters
• U.S. Supreme Court (Ruling Summaries)
• FlightGlobal

An American Airlines Boeing 737 MAX 8 was removed from service earlier this week after a bullet hole was discovered in the aircraft’s right wing following a round-trip rotation between Miami and Medellín, Colombia. The incident, which took place between February 22 and February 23, 2026, has prompted investigations by safety authorities in both the United States and Colombia.

According to reporting by CBS News, the damage was identified on a flight control surface, specifically the aileron, consistent with a projectile strike. While the flight landed safely without injury to passengers or crew, the discovery highlights ongoing security concerns regarding flight operations in specific regions of Latin America.

Incident Details and Timeline

The aircraft involved is a Boeing 737 MAX 8, registered as N342SX. It operated Flight AA923 from Miami International Airport (MIA) to José María Córdova International Airport (MDE) in Rionegro, serving Medellín, on the night of Sunday, February 22. It was scheduled to return as Flight AA924 on the morning of Monday, February 23.

According to data summarized by aviation tracking outlets, the damage involved a puncture hole in the right wing aileron, a critical flight control surface used to bank the aircraft. The damage reportedly showed clear entry and exit points indicative of a bullet strike.

Conflicting Accounts of Discovery

While the existence of the damage is confirmed, reports differ regarding when the bullet hole was first detected. Two primary narratives have emerged from aviation journalism sources:

• The Medellín Discovery Scenario: Citing a statement attributed to American Airlines, CBS News reports that the damage was identified during a routine inspection while the aircraft was still on the ground in Medellín. In this version of events, temporary repairs were reportedly made overnight, allowing the plane to operate the return flight to Miami safely.
• The Miami Discovery Scenario: Conversely, outlets such as AviationSource and AirLive report that the damage was only discovered after the return flight (AA924) had already landed in Miami on Monday morning. This scenario implies the aircraft may have flown passengers back to the U.S. carrying undetected damage.

Following the conclusion of its passenger service, the aircraft was ferried without passengers from Miami to the airline’s maintenance hub at Dallas/Fort Worth (DFW) on the night of February 23 for permanent repairs.

Official Statements and Investigation

American Airlines confirmed the incident in a statement provided to media outlets. The carrier emphasized that safety remained the priority throughout the operation.

“The aircraft was immediately removed from service for further inspection and repair. We will work closely with all relevant authorities to investigate this incident.”

, American Airlines statement via CBS News

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In Colombia, the Civil Aviation Authority (Aerocivil) announced it would launch an investigation to determine the origin of the projectile. According to local reports, Aerocivil is working to establish whether the impact occurred while the aircraft was in Colombian airspace or on the ground. The U.S. Federal Aviation Administration (FAA) is also aware of the incident and is expected to collaborate on the inquiry.

Regional Security Context

The incident occurs against a backdrop of heightened security alerts in the Rionegro area, where the Medellín airport is located. Local reporting indicates that a significant shooting and police pursuit occurred in Rionegro on February 18, 2026, just days before the aircraft was struck. Authorities have maintained a high alert status at the airport following recent arrests of international fugitives.

AirPro News Analysis

Operational Risk in Latin America

This event marks another concerning instance of commercial aircraft becoming collateral damage in volatile security environments. In late 2024, aircraft from Spirit, JetBlue, and American Airlines were struck by gunfire while operating near Port-au-Prince, Haiti, leading to a temporary suspension of flights to that region. While the security situation in Medellín is distinct from Haiti, the vulnerability of aircraft during approach and landing, phases where they are low and slow, remains a critical challenge for airline security teams.

The discrepancy in the timeline of discovery is also significant. If the damage was indeed found in Miami rather than Medellín, it raises questions about the efficacy of turnaround inspections at outstations. Conversely, if it was found and patched in Colombia, it suggests the airline determined the damage was within the Minimum Equipment List (MEL) limits for a safe ferry or revenue flight, a standard but rigorously controlled practice.

Frequently Asked Questions

Was anyone injured during the incident?
No. There were no injuries reported among the passengers or crew on either the inbound or outbound flights.

What type of plane was involved?
The aircraft was a Boeing 737 MAX 8, a common narrow-body jet used for short- to medium-haul international routes.

Is it safe to fly to Medellín?
Flights continue to operate. However, aviation authorities and airlines constantly monitor security situations. Following similar incidents in other regions, airlines have occasionally adjusted flight paths or schedules, though no suspension of service to Medellín has been announced at this time.

Sources

• CBS News