China orders 150 Airbus jets

PARIS -- China ordered 150 Airbus single-aisle A320 airliners Monday, more than twice as many plane orders as the company's U.S.-based rival Boeing Co. snagged from China last month.

The European aircraft manufacturer said the deal was worth nearly $10 billion and was "the largest single order that Airbus has ever received since it entered the Chinese market two decades ago."

The A319s, A320s and A321s, all part of the A320 family, will go to Air China, China Eastern Airlines, China Southern Airlines, Sichuan Airlines, Shenzhen Airlines and Hainan Airlines.

The order upstages China's purchase last month of 70 Boeing jets. At list prices that deal was worth about $4 billion. Buyers typically get discounts on large orders.

Until now, Chicago-based Boeing has won about 60 percent of new plane orders from China, with Airbus taking about one-third.

Boeing shares fell 55 cents to $68.89 in morning trading on the New York Stock Exchange. Its shares have ranged from $49.52 to $70 over the past 52 weeks.

The order for Airbus planes was announced during a visit to France by Chinese Prime Minister Wen Jiabao. Representatives from Airbus and China's Central Aircraft Sales Corp. signed the deal in the presence of the Chinese premier and his French counterpart Dominique de Villepin.

In all, the two prime ministers oversaw the signing of 16 contracts or deals worth a total of $10.5 billion, including the Airbus order.

French telecommunications equipment maker Alcatel said it signed a contract with China Satellite Communication Corp. to design and manufacture a new-generation of satellite.

Eurocopter and a Chinese partner signed a contract for the joint development of a six-ton helicopter.

Also signed was a $175 million financing arrangement for a high-speed rail link.

Backed by a high-level French diplomatic offensive, Airbus has been pushing to increase its presence in China, one of the world's fastest-growing markets for air travel.

Airbus is controlled by European Aeronautic Defence and Space Co.

Wen's first stop in France on Sunday was the factory where Airbus assembles its 555-seater A380 superjumbos.

Soon after touching down in the southern French city of Toulouse, Wen also presided over the signing of a cooperation agreement between Airbus and China's National Development and Reform Commission that could lead to the opening of an Airbus assembly line to build A320 jets in China.

France is one of the Chinese government's most ardent partners in Europe.

"The numerous accords that we signed amply reflect the common understanding that I found with the French government during this visit," Wen said at a news conference with Villepin.

Villepin said France wants a "long-term industrial and technological partnership" with China.

France has taken a lead in pushing the European Union to lift the arms embargo imposed on China after the 1989 Tiananmen Square crackdown, when Chinese troops killed hundreds of protesting students and workers.

"We continue to consider that this embargo constitutes an anachronism. It does not reflect the reality of our relations with China, nor the reality of the strategic partnership which we are building with her," Villepin said.

He noted French exports to China grew 17 percent in 2005.