Airbus aims for half of China's skies By Lu Haoting (China Daily) Updated: 2005-09-22 08:49
Airbus will have half of China's aviation market before 2013, company
executives vowed yesterday.
The European aircraft maker will also increase its procurements from, and
enhance technology transfer to, China.
"If we continue on our current growth trend, it will take us eight years to
control 50 per cent of the Chinese market," said Laurence Barron, Airbus China
president.
"But we want to be there earlier, and we want to be more aggressive."
Airbus has steadily ramped up its fleet in China with a market share
increasing from 7 per cent in 1995 to 34 per cent in 2005. Its US rival Boeing
still holds the rest of the market.
The European company sold its first plane to China in 1985, while Boeing had
a 13-year head start.
"The year 2005 is quite a significant year for us, not only globally, but
particularly in China," Barron said at a press briefing yesterday at the
Aviation Expo/China 2005.
"It is the 20th anniversary of the successful co-operation of Airbus with
China's aviation industry, with the first Airbus aircraft delivered to China
Eastern Airlines in 1985," Barron said.
Airbus has received 69 orders from five Chinese airlines this year to the end
of August.
The orders comprise of five A380s from China Southern Airlines, 30 A330
family aircraft and 34 A320 family aircraft from Air China, China Eastern,
Shenzhen and Sichuan airlines.
"We expect the total delivery of Airbus aircraft to China to reach 65 by the
end of this year," Barron said.
"We are expected to manufacture 360 jets this year, which means one-sixth of
our planes this year are coming to China."
Barron said Airbus would concentrate on the sales of A330 aircraft to China
in the next five years. But over the long term, he said China would also be a
big market for its A380 Superjumboand A350, a challenger to Boeing's 787
Dreamliner.
The A380 double-decker took off on its maiden flight in April and is expected
to enter service in 2006.
So far, Boeing has offered no direct challenger to the Superjumbo. Airbus
will launch the A350 programme next month and the long-range midsize airplane
will be delivered from 2010.
Barron also re-affirmed that Airbus does not only sell aircraft to China, but
also "forges a full risk-sharing partnership" with its Chinese counterparts.
Airbus plans to increase its procurement volume in China from the current
US$15 million per annum to US$60 million per annum by 2007 and US$120 million by
2010, he said.
The aircraft maker also plans to lease the whole wing production of the A320
to China by 2007, he said.
China will take up 5 per cent of the airframe work share in the latest A350
project and 10 per cent of a future Airbus project, he added.
Airbus, in July launched the Airbus (Beijing) Engineering Centre, the
company's second largest engineering centre outside Europe after the one in the
United States.
The centre, 25 per cent owned by AVIC II, will design parts for the Airbus
A350.
Boeing has 71 orders from China so far this year, among which 60 are for 787,
according to the company's website. But there was no comment on this from Boeing
yesterday.
Airbus' global deliveries have outperformed Boeing since 2003.
(China Daily 09/22/2005 page10)
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