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China to Buy Up to 120 Airbus Jets in Germany-China Deal

China agrees to purchase up to 120 additional Airbus aircraft during Chancellor Merz’s 2026 Beijing visit, valued at $15-16 billion, addressing trade imbalance.

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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

Photo Credit: Airbus

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Commercial Aviation

Aerolíneas Argentinas Leases Six Boeing 737-10s from ACG

Aerolíneas Argentinas signs leases for six Boeing 737-10s with ACG at Farnborough, part of a 20-aircraft fleet renewal plan.

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Aerolíneas Argentinas has secured lease agreements with Aviation Capital Group (ACG) for six Boeing 737-10 aircraft, marking a critical step in the carrier’s largest fleet modernization effort in a decade.

Announced on July 23, 2026, at the Farnborough International Airshow, the transaction is part of a broader 20-aircraft renewal program scheduled for the 2027-2031 timeframe. According to a press release from ACG, deliveries of the Boeing 737-10s from the lessor’s orderbook will commence in 2028, providing the Argentine flag carrier with increased capacity for high-demand domestic and regional routes across South America.

Comprehensive Fleet Modernization Strategy

The ACG agreement fits into a larger procurement strategy formalized at the Farnborough event. According to reporting by Infobae and La Nación, the airline’s 2027-2031 plan encompasses 20 new aircraft, representing a renewal of 25 percent of its total fleet and 60 percent of its long-haul fleet.

The overall 20-aircraft plan includes six Airbus A330neos, eight Boeing 737-10s, and six Boeing 737-8s. During the airshow, Aerolíneas Argentinas formalized lease agreements for 14 of these aircraft with lessors ACG and Avolon.

Fabián Lombardo, President and Chief Executive Officer of Aerolíneas Argentinas, stated that the agreement reflects a commitment to building a more modern, efficient, and sustainable fleet.

We are pleased to strengthen our relationship with ACG through this agreement for six Boeing 737-10 aircraft. These aircraft are a key part of our 2027-2031 fleet plan and will allow us to add capacity on high-demand domestic and regional routes, improve operating efficiency and continue offering a more competitive product to our passengers.

Financial Restructuring and Self-Financing

The airline’s leadership emphasized that the fleet renewal is entirely self-financed, a notable shift following its recent financial restructuring.

La Nación reported that Aerolíneas Argentinas achieved positive operating results of $56.6 million in 2024 and $120.7 million in 2025, as audited by KPMG. These figures have allowed the carrier to pursue this capital-intensive modernization without relying on state subsidies.

Capacity Expansion with the Boeing 737-10

The Boeing 737-10, the largest variant of the MAX family, will be deployed from the carrier’s primary hubs at Aeroparque Jorge Newbery (AEP) and Ezeiza International Airport (EZE) in Buenos Aires.

Thomas Baker, Chief Executive Officer and President of ACG, highlighted the operational benefits of the aircraft for the South American market.

We are delighted to expand our partnership with Aerolíneas Argentinas as it continues to strengthen its domestic and regional network. The 737-10 offers airlines vital additional capacity, improved fuel efficiency and enhanced profitability, making it well suited to high-demand routes.

AirPro News analysis

We view Aerolíneas Argentinas’ ability to self-finance a 20-aircraft renewal program as a strong indicator of the carrier’s stabilized financial footing following years of restructuring. By securing leases through established lessors like ACG and Avolon rather than direct manufacturer purchases, the airline mitigates upfront capital expenditure while securing near-term delivery slots starting in 2028. The selection of the Boeing 737-10 specifically addresses capacity constraints at slot-restricted airports like Aeroparque Jorge Newbery, allowing the airline to maximize passenger throughput on its most lucrative regional routes without increasing flight frequencies.

Sources: Aviation Capital Group

Photo Credit: Aviation Capital Group

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Commercial Aviation

Global Aviation Conference Frankfurt 2026 Agenda and Speakers

Aviovis Group hosts the Global Aviation Conference Frankfurt on Sept 29-30, 2026, covering SAF, MRO, and fleet financing.

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Aviovis Group will host the Global Aviation Conference Frankfurt on September 29 and 30, 2026, gathering industry executives to address decarbonization, supply chain constraints, and technological integration.

The two-day event, held at the Frankfurt Marriott Hotel in Germany, aims to connect stakeholders across the aviation value chain, including airlines, lessors, and original equipment manufacturers (OEMs). According to the official event announcement, the conference will feature 11 panel discussions focused on the sector’s most pressing operational and strategic challenges.

Conference themes and panel discussions

The agenda includes a focus on sustainability, specifically the adoption of Sustainable Aviation Fuel (SAF) and regulatory mandates for decarbonization. Digitalization is another core theme, with panels exploring the transition from foundational data systems to artificial intelligence applications that yield measurable return on investment in airline operations.

Maintenance, repair, and overhaul (MRO) pressures will also be examined. Discussions will cover ongoing supply chain bottlenecks, component availability, and fleet reliability. Additionally, the program addresses workforce management, prioritizing crew welfare, recruitment strategies, and human factors in modern flight operations. Long-term industry forecasts projecting out to 2040 will guide conversations on fleet financing and leasing strategies.

Participating organizations and event features

The conference has drawn commitments from major global carriers and aerospace companies. Participating organizations include Lufthansa Group (LH), ITA Airways (AZ), Qatar Airways (QR), United Airlines (UA), Delta Air Lines (DL), Cyprus Airways (CY), and Saudia (SV). Representatives from Munich Airport (MUC), Lufthansa Technik, Pratt & Whitney, Rolls-Royce, and Avolon are also scheduled to attend.

Beyond the main stage presentations, the event includes an exhibition floor and a dedicated networking environment facilitated by a business-to-business matchmaking application. The conference will conclude with the Global Aviation Awards, which recognize achievements in artificial intelligence innovation, airport modernization, sustainability, and passenger experience.

AirPro News analysis

The agenda for the Global Aviation Conference Frankfurt accurately reflects the dual pressures currently facing the commercial aviation sector: the immediate need to resolve aftermarket supply chain bottlenecks and the long-term imperative to secure SAF for decarbonization mandates. By bringing together OEMs like Pratt & Whitney and Rolls-Royce with major operators and lessors, the event provides a necessary venue for aligning production realities with fleet planning forecasts through 2040. We view the inclusion of workforce mental health and crew welfare as a timely acknowledgment of the human capital challenges that have constrained operational growth in recent years.

Sources: Global Aviation Conference Frankfurt

Photo Credit: Global Aviation Conference

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Aircraft Orders & Deliveries

BermudAir Orders 10 Airbus A220-300s at Farnborough 2026

BermudAir orders 10 Airbus A220-300s at Farnborough 2026, with deliveries from Q4 2027 and fleet expansion to 20 aircraft by 2030.

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BermudAir has placed a firm order for 10 Airbus A220-300 aircraft, marking the carrier’s transition from regional jets to mainline single-aisle operations.

Announced on July 22, 2026, at the Farnborough International Airshow, the agreement represents the Bermuda-based airline’s first direct purchase from the European manufacturer. The order was initially logged in March 2026 under an undisclosed customer through BermudAir’s affiliated company, Odyssey.

Fleet transition and capacity growth

BermudAir currently operates a fleet of Embraer 175 and Embraer 190 aircraft. The introduction of the Airbus A220-300 will provide a significant capacity increase for the three-year-old airline. According to Airways Magazine, the A220-300 will be configured with 135 seats in a three-class layout, adding 39 seats compared to the airline’s current 96-seat Embraer 190s.

Deliveries are scheduled to begin in the fourth quarter of 2027, as reported by Aviation Week. Reuters notes that BermudAir plans to operate up to 20 Airbus A220 aircraft by 2030, eventually replacing its Embraer fleet entirely.

BermudAir Founder and Chief Executive Officer Adam Scott detailed the economic rationale for the upgauge in an interview with Airways Magazine, noting that the airline was previously leaving passengers and revenue behind on maturing routes.

“We’ve evolved from the E175 to the E190, from 76 seats to 96 seats. The A220 essentially has the same operating cost as the 190, but you get this extra capacity,” Scott said.

Network expansion across the Americas

The 3,600-nautical-mile range of the A220-300 will enable BermudAir to expand its footprint beyond its current North American gateways. The airline is actively growing its network to include destinations in the Caribbean and Central America, such as Belize, Turks and Caicos, Guatemala City, and Anguilla. Reuters reports the carrier plans to more than double its current 11 routes by the end of 2026.

In a press release issued by Airbus, Scott stated that the aircraft’s range, operating economics, and performance at constrained airports will allow the carrier to connect more communities with direct service. The new fleet will also feature XL overhead bins, which Airways Magazine reports will provide a 20 percent increase in carry-on volume.

Airbus Executive Vice President of Sales for Commercial Aircraft Benoît de Saint-Exupéry added that the agreement introduces the A220 to a distinct operational environment in the Atlantic and Caribbean, validating the aircraft’s role in targeted regional development.

AirPro News analysis

BermudAir’s shift to the Airbus A220-300 highlights a broader industry trend of regional carriers upgauging to small narrowbody aircraft to maximize slot utility and route profitability. By selecting the A220, BermudAir secures a platform that offers mainline passenger experience metrics while maintaining trip costs comparable to large regional jets. We view this order as a critical step in BermudAir’s strategy to establish a dominant hub-and-spoke model in the Atlantic, leveraging Bermuda’s geographic position to capture premium leisure traffic between North America and the Caribbean.

Sources: Airbus

Photo Credit: Airbus

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