Airbus Lands $2.3B Order From China Southern Airlines

Airbus reportedly signed an agreement to supply 10 A330-300 jets to China Southern Airlines, Asia’s biggest carrier by fleet size. The order is valued at $2.27 billion at list prices, the airline said Wednesday.

According to a company statement sent to the Shanghai Stock Exchange, the Airbus planes are set to be delivered between 2017 and 2019, and will help increase the airline’s capacity by 4 percent, according to reports. China is predicted to overtake the U.S. as the world’s biggest aircraft market.

The order for the European plane maker comes a week after China Southern and a subsidiary, Xiamen Airlines, announced a deal with Boeing to buy 110 planes in a deal valued at about $10 billion.

Wednesday’s announcement comes at a turbulent time for China Southern. According to a November report by the South China Morning Post, the airline’s chairman Si Xianmin is under investigation by authorities for "severe violations of discipline."

The company also reported a 48.4 percent year-on-year fall in net profit to 1.17 billion yuan ($186 million) in the third quarter. However the Guangzhou-based company’s shares have gained about 56 percent in value since the beginning of the year. On Wednesday, the airline's stock was down nearly 2 percent in Shanghai.

Earlier this month, China's budget carrier Spring Airlines announced plans to buy 60 aircraft from Airbus worth $6.3 billion at list prices, local media reported. State-owned China Aviation Supplies Holding Group also signed a deal with Airbus at the end of October, pledging the purchase of 100 A320 aircraft worth $9.7 billion at list prices.