Air China buys more medium-size

Air China Ltd, China’s biggest international carrier, said it’s likely to buy more medium-size aircraft for regional and domestic routes when it upgrades and expands its fleet, eschewing the 555-seat A380 made by Airbus SAS.

“Over the next few years, we will focus on either planes with about 250 seats or those with less than 200 seats,” said the Beijing-based airline’s president Ma Xulun, at a press conference on Tuesday in Hong Kong. “Right now we have no concrete plans to buy the A380 but if there is demand, we may reconsider.”

Ma’s comment is a blow for Toulouse, France-based Airbus, which is counting on China’s second-biggest carrier by fleet to buy the A380 aircraft and catch up with Boeing Co.

Air China has about 160 aircraft in its fleet. The company signed a $2 billion order this year for 15 Boeing 787 aircraft and placed a $2.9 billion order for 20 Airbus A330-200 planes.

Chinese state-controlled airlines have been the world’s biggest buyers of aircraft this year, ordering 165 planes valued at $17 billion from Airbus and Chicago-based Boeing. More than 64% of the aircraft ordered this year were Boeing models.

Airbus is counting on China’s demand to maintain its global lead in deliveries over Boeing.

Airbus is in talks to sell the A380 planes to Chinese airlines including Air China, China Eastern Airlines Corp and Hainan Airlines Co, the plane maker’s executive vice president of government relations Philippe Delmas said on June 16.

The A380, with a catalog price of $280 million each, will surpass Boeing’s 747 as the world’s largest commercial plane when it enters service next year.

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