Page 9 - AAA NOVEMBER - DECEMBER 2014 Online Magazine

COVER STORY CHINA AVIATION

FOR AVIATION INDUSTRY IN CHINA, aircraft). In the 20 year period between China Second Only to the U.S.
things are literally looking up. Since 2014 to 2033 Airbus forecasts a demand in China is now second only to America in
Beijing announced the start of a new China for more than 5,300 aircraft. domestic air travel with a 14.7% growth
framework to cultivate new airlines and “Today more than 900 in service A320 in June as compared to the previous year.
specifically low cost carriers (LCCs) in Family aircraft operate with 16 Chinese With a huge rise in the middle class,
2013, there has been a rush of start-up carriers and over 190 A320 Family aircraft Chinese air carriers are striving to fill the
activity. have been assembled and delivered from demand for more flights. The local airlines
The number of new passenger airlines the FALC in Tianjin,” said Fabrice Brégier, currently have 800 commercial airliners
that have recently launched, plan to or are Airbus President and CEO. on order --a 38 per cent increase from its
in formation has reached 19, according Recently, China Aviation Supplies current stockpile.
to CAPA’s compilation based on public Holding Company (CAS) and Airbus have “The Chinese air travel market, as
statements. signed a general terms agreement for measured by revenue passenger kilometres,
Airlines and operators based in China the purchase of a total of 70 Airbus A320 is only about half as large as the U.S. and
are projected to require 6,020 new aircraft Family aircraft, reflecting the strong Canada’s combined,” Tinseth said.
worth $870 billion over the next two demand from Chinese carriers for
decades, according to the latest annual the leading Airbus single-aisle Family Start-Ups
China Current Market Outlook (CMO) from for domestic, low cost, regional and The rising demand has resulted in aircraft
Boeing. Nearly three-fourth of the 6,020 international operations. manufacturers circling the skies of China,
airplane deliveries in China over the next and business houses starting new low-
20 years will be single-aisle 90-230 seat Challenge to Boeing, Airbus cost and regional carriers.
passenger airplanes, Boeing predicted. But the market share of both Boeing and Two budget carriers, including a
In this segment, Boeing has its highly Airbus in China is likely to see a greater subsidiary of China Eastern Airlines,
successful 737 series. challenge in the coming years, especially began operations this year and over 100
The U.S.-based commercial airframe from China’s state-run Commercial general aviation companies are lining up
manufacturer has already received 13% Aircraft Corp of China (Comac) which is for registration.
more orders from China through the first developing a single-aisle C919 airplane. According to CAPA, new airlines
eight months of 2014 than all of last year. Comac said it has received orders for have made known their intent to launch,
This equals to 260 aircraft ordered so far 30 of its C919 planes — a narrow-body while none have been known to publicly
in 2014, compared to 230 for all of last with 158-168 seats — as well as 20 of its withdraw. At least six airlines have so far
year, said Randy Tinseth, vice president 78-90 seat ARJ21 regional jets, both of launched in the past year while others are
of marketing for Boeing’s commercial which have yet to enter full commercial hoping to launch by the year end or early
aircraft division. production. next year.
“China’s aviation market is going Comac is also reportedly seeking
through dynamic changes...New business suppliers to build a new wide-body
models like low-cost carriers and airplane passenger plane, the C929, over the next
leasing companies, a new generation decade, expanding its ambitions and
of fuel-efficient airplanes, and evolving rivalry with Boeing and Airbus.
consumer needs are driving demand for Global regional airplane makers
more direct flights to more destinations,” such as Bombardier and Embraer are
Tinseth said. also building larger aircraft to enter the
The latest 20-year outlook for China market segments.
is eight per cent higher than the forecast According to Embraer officials, its
released by Boeing in 2013. Boeing claims second generation of E-jet, which is
that currently it manufactures more than being designed to seat more than 110
50 per cent of in-service aircraft in China. passengers, will enter service in 2018.
However, rival Airbus is set to give Similarly, Bombardier, with its new
tough competition with the re-engined CSeries airplane will give a challenge
version of its A320 passenger jet coming to Boeing’s 737 series and Airbus A320
into the market at the end of 2015. Family aircraft.
The European multinational aircraft According to observers, airlines will
maker said, the in-service Airbus fleet find these new planes from Embraer and
with Chinese operators at present Bombardier to be fuel and cost efficient, In-service Airbus fleet with
comprises over 1,000 aircraft (around 140 posing a great challenge to Boeing and Chinese operators at present
A330 Family and over 920 A320 Family Airbus. comprises over 1,000 aircraft
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