FINFACTS IRELAND BUSINESS NEWS
By Finfacts Team
Jun 2, 2005, 11:16
US aircraft manufacturer Boeing announced on Thursday that it had signed contracts worth about $600 million with Chinese companies to supply aircraft parts until 2021.
Some of the parts are for Boeing’s new 787 Dreamliner aircraft.
Suppliers include Chengdu Aircraft Industrial (Group) Co. Ltd. and Hafei Aviation Industry Co. Ltd.
The Boeing 787 Dreamliner will carry 217-257 passengers and is due to enter service in 2008. As of March 2005, 501 of the 802 jetliners operating in China were Boeing airplanes (excluding Hong Kong and Macao). The Boeing unit market share in China is 63 percent and seat market share is 67 percent.
“China’s aviation industry is providing outstanding technological capabilities and resources that help us meet quality, cost and delivery imperatives in our program — particularly on the new 787,” Boeing executive Carolyn Corvi said in a statement.
Boeing was the sole supplier of large aircraft to the Chinese market for many years but now has to contend with stiff competition from Airbus.
Boeing said today that the Chinese companies would make the parts using their own technology and Boeing would not have to provide know-how.
“They are very competitive and that’s why we’re here,” Corvi said.
As of March 2005, 501 of the 802 jetliners operating in China were Boeing airplanes (excluding Hong Kong and Macao). The Boeing unit market share in China is 63 percent and seat market share is 67 percent.
From 1993 till present, Boeing instructed over 24,000 Chinese aviation professionals, half of whom are pilots, maintenance and flight operations people.
China and Boeing industrial cooperation began in the mid-1970s. There are now over 3,400 Boeing airplanes – nearly one third of the Boeing world fleet – flying worldwide that include major parts and assemblies built by China.
The Boeing Company forecasts that China will need more than 2,400 new jet airplanes worth $197 billion for the next 20 years.
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