The China Aviation Industry Corporation I (Avic I) and the China Aviation Industry Corporation II (Avic II), the two largest aircraft producers in the country, are discussing co-operation plans for a jumbo plane project near Shanghai.

Jin Xingming, a deputy to the National People’s Congress said the Shanghai government, aviation companies and some other state-owned enterprises will jointly invest in and establish the jumbo plane company under the guidance of the central government.

Feng Peide, a member of the 11th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), the top political advisory body, said it would be a great challenge for the company to build jumbo planes in a relatively short time. ‘The goal could only be achieved with iron will.’

Chinese airlines will need another 1,800 jumbo passenger planes in the next decade which means it has a market ready and waiting.

By definition a jumbo passenger plane is one with a take-off weight of more than 100 tonnes, or with more than 150 seats.

Currently, only the United States, Russia, France, Germany, Britain and Spain have the capability to build jumbo aircraft. Most of the business is run by Boeing and Airbus.

The production of jumbo aircraft is strategically significant for the country although it already builds many major parts of jumbo aircraft completely creating its own version is a much further step.
Source: CargoNews Asia

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

One probably follows on from the other. China is now one of Boeing’s biggest overseas market. And China is now one of Boeing company’s largest foreign supplier of parts. As in a contract worth US$2.5 billion for aircraft products.

John Bruns, vice president China operations of Boeing, said at the Asian Aerospace International Expo and Congress that China is an ‘exciting proposition’, and offers greater opportunity for OEMs than ‘just selling airplanes’.

He said, ‘Liberalization is creating a more competitive environment and airline strategies are assisting with this growth by responding to the customer’s desire to save time by flying point-to-point.’

China will need more than 2,900 new aircraft to satisfy the growth of the industry. The thought of which probably makes Boeing very happy. John Bruns said this will inevitably lead to more investment on the Chinese mainland.

Boeing currently has 170 direct Boeing employees in China and 3,000 people working in Boeing joint ventures.

John Bruns said, ‘China now has a role in all current Boeing models.’ With such a market potential this is inevitable.
Source: China Daily