China’s government reached agreement with Airbus yesterday on firm orders for 110 A320 family aircraft and 40 A330s valued at approximately $15 billion and also signed an MOU with the manufacturer stipulating that Chinese industry will take a 5% stake in A350 XWB production.

China Southern Airlines signed a separate contract for 10 A330-200s. The announcements of the large aircraft order and industrial cooperation on the A350 coincided with high-profile meetings taking place this week in Beijing between French President Nicolas Sarkozy and Chinese President Hu Jintao, both of whom were present for the signing of the MOU by Airbus COO Fabrice Bregier and National Development and Reform Commission Vice Minister Chen Deming.

According to Airbus, the MOU states that Airbus and NDRC will “carry out high-level industrial cooperation on A350XWB development and manufacturing work in order to enhance a closer strategic cooperation relationship between Airbus and the Chinese aviation industry. Airbus confirms its intent to manufacture 5% of the airframe of the A350 XWB aircraft in China.” It added that a joint venture manufacturing plant will be established in Harbin in 2009 with AVIC II subsidiary Harfei Aviation Industry Co. “to produce [A350 WXB] composite material parts and components.”

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China Airlines was ordered by the Taiwanese government to ground temporarily its 11 remaining 737-800s for safety checks following the post-landing fire and explosion that destroyed a -800 Monday morning at Naha Airport in Okinawa.

A joint Japanese, Taiwanese and US investigation into the incident commenced yesterday. Initial examination of the wreckage by Japanese authorities yielded no immediate explanation. Japan’s Aircraft and Railways Accidents Investigation Commission said a “possible fuel leak” was being investigated. A fire started in the right-wing engine 3 min. after the aircraft parked. All 157 passengers and eight crew escaped. The two pilots were the last off, jumping through a cockpit window moments before the explosion, according to the airline.

Taiwan’s Civil Aeronautics Administration told CI to ground its 737-800 fleet and two of the type operated by subsidiary Mandarin Airlines. Japan’s Transport Ministry said it ordered Japan Airlines, ANA and Skymark Airlines to conduct checks on 23 CFM56-powered -800s and no anomalies were found.