The civilian contracts are spilling over to the military. Along the way, Boeing is going to lose its number one position in China as well as permanently losing that position worldwide.
Sino-European aviation co-op leaps up to new stage
(Xinhua)
Updated: 2004-12-14 17:31
Aviation cooperation between China and Europe stepped on a new stage in 2004 with the Europe-based Airbus having sold a record number of planes to China and China invited to share Airbus’ new aircraft program for the first time.
Airbus’s China company announced here recently that China has just signed contracts with Airbus for the purchase of 23 Airbus A320 family aircraft worthy of 1.2 billion US dollars, marking a successful year for the cooperation between Airbus and its Chinese partners.
The year 2004 also witnessed a breakthrough of Sino-European aviation cooperation, as Chinese companies will take five percent of the work on Airbus’s A350 program, said Gustav Humbert, Airbus Chief Operating Officer and Executive Vice President Programs in China recently.
According to Humbert, the five-percent share is only a short- term goal for Airbus’ China strategy, and in the future, China will be allowed to take ten percent share in new Airbus programs.
In 2004, Chinese aviation companies ordered a total of 58 aircraft from Airbus, increasing its total order from Airbus to 81. In the future, Airbus hopes to share half of China’s commercial aircraft market, said sources with the European giant airplane- maker.
Airbus is planning to increase its subcontracts in China, according to its China strategy. Beginning from 2007, Airbus will increase its annual subcontract volume in China from the current 30 million dollars to 60 million dollars, and the figure will jump to 120 million dollars in 2010.
Airbus also plans to establish a program design center in China under its future strategy. Starting from 2008, about 200 Chinese engineers will have access to participating in aircraft-design work for Airbus, which will help China become an all-round partner of Airbus in the future.
When Airbus accelerates its pace to expand market in China, the owners of Airbus Industrie, the European Aeronautic Defense and Space Company (EADS) also made great progress in its China business.
EADS announced here recently that it had just signed an agreement with its Chinese counterpart in order to provide a solution for the 2008 Beijing Olympics safety system. It also planned to build a center to demonstrate its safeguarding system in case of big events in Beijing.
Sources said last year EADS invested 30 million US dollars for five percent share of Avichina, a branch company of the China Aviation Industrial Corporation (AVIC), to jointly develop, produce and export new aviation products, making itself the first overseas investor for China’s aviation industry.
Currently, EADS is focusing on cooperation with China in the field of helicopter. Last month, the AVIC signed an agreement with Eurocopter, an EADS firm, to co-produce a new helicopter, which will be in operation in 2010. The Eurocopter also plans to set up a production line for EC 120 helicopter in Harbin, capital city of northeast China’s Heilongjiang Province.
As world’s leading aeronautic and defense company, EADS’ business included commercial aircraft, helicopter and missile. In 2003, it pocketed 1.61 billion euros from the China market, with its contracted orders from China hitting 3.5 billion euros.
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