Airbus shares rally after large Chinese order

Airbus shares rose on Tuesday after the European plane maker won a deal worth tens of billions of dollars to sell 300 aircraft to China.

Airbus was up 1.9 per cent in early session trading.

French officials said the deal was worth some 30 billion euros (34 billion dollars).

At catalogue prices, plane-makers usually grant significant discounts.

The Chinese order was announced late on Monday, coinciding with a visit to Europe by Chinese President Xi Jinping and matching a China record held by U.S. rival Boeing.

Investment bank Citigroup kept a buy rating on Airbus.

We do not have details of the delivery schedule of this order but China has been taking about 20-25 per cent of Airbus production per year.

Given the A320 family is sold out at announced production rates out to 2024/25, we believe this increases the probability of Airbus moving to a production rate of 70 per month, Citigroup said.

(Reuters/NAN)


 

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.3>

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate




DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on


TEXT AD: This space is available for a Text_Ad.. Call Willie on +2347088095401 for more information


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.


Author: Agency Report

Source: https://www.premiumtimesng.com/business/322384-airbus-shares-rally-after-large-chinese-order.html

Comments

comments

Be the first to comment

Leave a Reply