AEROSPACE OUTLOOK

by Royce Lowe

Airbus Expands in China

Simple Flying reports that Airbus recently signed new cooperation agreements with its Chinese aviation industry partners. This partnership will next see an increase in capacity at Airbus’s Tianjin A320 final assembly line. There will further be a General Terms Agreement to allocate 160 aircraft to Chinese airlines and to increase the use of sustainable aviation fuels in regular flights.

Guillaume Faury, the CEO of Airbus, signed an agreement to increase the assembly capacity for its Airbus A320 family with a second line at its Tianjin site. The deal was made during a recent state visit with the Tianjin Free Trade Zone Investment Company and Aviation Industry Corporation of China Ltd in the presence of Chinese President Xi Jinping and French President Emmanuel Macron. Airbus aims to produce, globally, 75 aircraft per month by the end of 2026. The original site in Tianjin, in operation since 2008, has assembled over 600 A320 aircraft since it began operations. It carries out cabin interior installation and fuselage painting. Airbus currently has four A320 final assembly sites worldwide, with four assembly lines in Hamburg and others in Toulouse and Mobile, Alabama.

Airbus and the China National Aviation Fuel (CNAF) Group signed a Memorandum of Understanding to upgrade Chinese-European cooperation for Sustainable Aviation Fuels. The agreement covers the production, competitive application, and common standard formulation for fuel use. In September 2022, Airbus and CNAF contracted to support flights in China to operate with SAF. So far, some seventeen delivery flights and the first commercial flight have been facilitated by the two partners.

The aim of this new agreement is to optimize the SAF supply chain by using a mix of sources and improving SAF production to use 10% SAF by 2030.

Airbus CEO Guillaume Faury commented on the announcement, saying, “We are honored to continue our long-standing cooperation by supporting China’s civil aviation growth with our leading families of aircraft. It underpins the positive recovery momentum and prosperous outlook for the Chinese aviation market and the desire to grow sustainably with Airbus’ latest generation, eco-efficient aircraft. Airbus values its partnership with the Chinese aviation stakeholders, and we feel privileged to remain a partner of choice in shaping the future of civil aviation in China.”

Airbus also signed a General Terms of Agreement with the China Aviation Supplies Holding Company to firm up a purchase of 160 Airbus commercial aircraft. The agreement covers previously announced orders worth $17 billion. The deal includes 150 A320 aircraft and ten Airbus A350-900 widebody aircraft orders, reflecting Chinese carriers’ strong demand in all market segments.

China represents over 20% of the worldwide aircraft market. Airbus saw its first aircraft enter the Chinese market in 1985, nearly 40 years ago, when an A310 was first delivered to China Eastern Airlines. China’s air traffic is forecast to grow at a rate of 5.3% annually over the next 20 years, significantly faster than the world average of 3.6%. This growth will lead to a demand for 8,420 passenger and freighter aircraft over the next twenty years.

We have previously mentioned China’s competing plane, the COMAC C919, which is effectively on the market. China is looking to have an annual production capacity of 150 C919s within the next five years. We will monitor the performance of the plane itself, together with progress in its production.

Boeing opened its first overseas plant, a completion and delivery center, in the middle of a trade war in 2018, some 90 miles from Shanghai. The plant does interior and exterior paintwork and other detail finishing work. The plant is a joint venture between Boeing and the Commercial Aircraft Corporation of China (COMAC).

The Outlook: The demand for commercial and fleet aircraft will remain strong through 2030 and help support component demand at subcontractors who serve aircraft manufacturing and maintenance. The industry has always had rises and falls depending on economic winds, but the long view is for strong growth over the next decade.

Author profile:Royce Lowe, Manufacturing Talk Radio, UK and EU International Correspondent, Contributing Writer, Manufacturing Outlook. n

MAY 2023