There is a clear understanding in Beijing that the best way for China to achieve its ambition in civil aviation — namely to build its own fleet of commercial craft — is to work in partnership with Airbus and Boeing, rather than flying solo or partnering with Russian companies.

Beijing has employed this strategy over the last 20 years or so, working with both Airbus and Boeing to produce components and sub-assemblies as a first step on the long road to manufacturing its own indigenous aircraft.

According to Boeing’s forecast, China will demand many more aircraft over the coming 20 years than Boeing had initially expected in 2006. Boeing predicts that between 2007 and 2026, China will purchase 3,400 new aircraft worth US$340 billion, while Rolls-Royce foresees a demand for 3,100 aircraft over the same period.

As a result, domestic demand on the Chinese aviation industry to excel and deliver domestically built aircraft will only increase. In conjunction with the development of commercial carriers and civil helicopters, skills in the Chinese aircraft maintenance, repair and overhaul (MRO) sector are rising rapidly.

AVIC I’s Shanghai Aircraft Manufacturing Factory operation, which is responsible for the final assembly of the ARJ21 civil craft, will become part of a listed company, AVIC I Commercial Aircraft Corporation (ACAC), whose shares will be sold in China and on foreign stock exchanges.

The operation of Xian Aircraft Industry Corporation will be reorganized as a listed business that will later become the core of a civil manufacturing group encompassing the civil facilities at the Chengdu Aircraft Industry Corporation and Shenyang Aircraft Industry Corporation.

The author of this long and detailed article is Dr Eugene Kogan who is a guest researcher at the Research Institute of the German Council on Foreign Relations in Berlin. He is a defense industry analyst with expertise on Russia, Eastern Europe, Israel and China.

The full article first appeared in The Jamestown Foundation and is used by Asia Times with permission. To read the quite extensive and very clearly written piece click on Source. It forecasts a seriously important growth period for the China aviation construction industry.
Source: Asia Times

European aircraft producer Airbus has authorized a Shenzhen company to be its first maintenance center in Asia.

Lufthansa Technik Shenzhen , not a name that rolls off the tongue, will provide repair and overhaul services in line with Airbus’ requirements, according to an agreement signed by the two companies.

The Shenzhen company has started serving Chinese Airbus operators, helping to cut costs and increase efficiency as they no longer need to send aircraft parts to Europe for repair. It is also expected to provide maintenance services to other customers in the Asia-Pacific region.

The company has received approval from Airbus and the Civil Aviation Administration of China (CAAC) to join the Airbus Spares repair station network. Airbus is trying to set up a comprehensive after-sales service network in China. It has built customer service and technical support stations in 20 cities.

In 1997, it invested US$80 million in an advanced training center in Beijing to help domestic airlines train more than 14,000 pilots, crew members and maintenance technicians.

China’s northern port city Tianjin was selected as the first Airbus overseas assembly plant this year and is expected to turn out its first aircraft at the end of 2008.

Airbus announced last year that it would renew cooperation with the China Aviation Suppliers Import and Export Group on training and support services for another 20 years.
Source: People’s Daily Online

Ameco Beijing, an aircraft maintenance joint venture between Air China and Lufthansa, will start construction on an RMB47 million warehouse this month.

Ameco said in a statement that the 8,000 square meter facility, which should be operational by October next year, will store civil aviation materials and maintenance tools.

Air China holds a 60% stake in Ameco Beijing while Lufthansa holds the remaining 40%. The joint venture is based at Beijing Capital International Airport.

MTU Maintenance is based in Zhuhai on the southern coast of Guandong Province. It is a joint venture between the German company, MTU Aero Engines Holding AG, and China Southern Airlines.

It has just won a contract worth 90 million euros ($128 million) from Norwegian Air Shuttle ASA to maintain 44 of the company’s aircraft engines for five years.

MTU Aero Engines and China Southern Airlines each own 50% in the joint venture, which was founded in 2002. (Note that MTU is, itself, originally a joint venture between Daimler Benz and MAN although it is now wholly owned by Daimler Benz.)
Source: Center for Pacific Aviation