Airbus aims to fly higher with new China facility

NEW INVESTMENT: Staff members of Europe's largest aircraft manufacturer standing in front of a wall bearing the image of the Airbus A330 plane at a ground-breaking ceremony for the completion and delivery centre in Tianjin, China, yesterday.


    Mar 03, 2016

    Airbus aims to fly higher with new China facility


    EUROPE'S largest aircraft manufacturer, Airbus, started construction yesterday of a new facility to deliver wide-body planes in China, as it faces off against bitter United States rival Boeing for market share in the world's second-largest economy.

    At a ceremony in the northern port of Tianjin, Airbus CEO Fabrice Bregier and Chinese officials officially broke ground for the completion and delivery centre that will deliver two A330 planes per month.

    The new centre is its first such facility for wide-body aircraft outside Europe and "marks a new milestone for Airbus' international footprint", Mr Bregier said.

    It will take flyable unpainted aircraft from the company's headquarters in Toulouse, France, and add cabins, furnishings and paint, before they are delivered to customers.

    The centre is an expansion of the firm's existing final assembly plant for A320 single-aisle aircraft in the city.

    China's economic growth slowed to its weakest in a quarter of a century last year and concerns over its outlook have sent shivers through global stock exchanges. But Mr Bregier said "this is not true for our market", adding that increased middle-class incomes and easing visa rules were driving a boom in air travel.

    The world's second-largest economy is already Asia's biggest aircraft buyer as a growing middle class takes to the skies in ever-increasing numbers.

    The country is forecast to have 1.7 billion air passengers by 2034, and is poised in the next two decades to become the largest civil aviation market in the world.

    Boeing also plans to open a completion centre in China, it announced last year.

    The company sold 300 aircraft worth a record US$38 billion (S$53.2 billion) during President Xi Jinping's visit to the US last year.

    The two firms have been in a fierce battle for market share in China, where Airbus has gone from 27 per cent in 2004 to roughly 50 per cent today, it said.

    China is Airbus' largest market, accounting for nearly a quarter of planes delivered last year. Days before the ground-breaking, Air China announced orders for 12 wide-body planes for US$2.9 billion.