Airbus pays special attention to Chinese market

Last July, the giants in the global aviation industry laid arena at the Farnborough International Airshow, one of the four most famous airshows in the world. Airbus, one of the two leading manufacturers of civil aircrafts showed great ambition here, for it has not only arranged A340-600 and A318 to take part in the flying performance, but also promoted the brand-new double-deck aircraft A380. Besides, what Mr. Barron, President of Airbus China says in his meeting with Chinese journalist indicated that the corporation has a special interest in the Chinese market.

Mr. Barron, formerly a lawyer, has joined the Airbus headquarters for 22 years. In 2001 he was appointed Senior VP of Airbus and last January he took over as president of Airbus China and thus was fully responsible for Airbus' business in China. Inside a meeting room near the stand of Airbus, Mr. Barron received journalist's interview. Mr. Barron said with confidence that Airbus has become the world No.1 civil aircraft maker in 2003. During the past 5 years, Airbus outpaced the competitors in terms of orders received, and last year it outperformed the rival at delivery of aircrafts. The corporation's turnover reached 19.2 bln European Dollars. In the first half of this year, Airbus' order accounts for 55 percent of the global market and its delivery of airplanes will once again take more than 50 percent. According to the latest news, Airbus gains orders worth USD 10.6 bln at the Airshow. A total of 84 airplanes are sold, including the intentional purchase.

Mr. Barron grew more excited as the topic switched to China. China, as the CEO of Airbus stated at the exhibition, is the most attractive market in the world. In the future 20 years, China will need 1, 316 airliners of more than 100 seats so as to meet the demand of increasing transportation and replace the old ones, hence the second largest market next only the US. The passengers transported in the Chinese mainland will rise by 20 percent in 2004 and 2005 respectively. The increase will retain 8.1 percent after 2005. Airbus's market share in China has been keeping on increasing, from 6 percent in 1995 to 24 percent at present. Their goal is to take over 50 percent within 10 years time. Hearing his counting the figures, one can feel Airbus has really made painstaking efforts in investigating the Chinese market.

By what advantage price or technique does Airbus try to win the market share? Mr. Barron attributes Airbus' success to its big investment in research and improvement of the most advanced airplane in the world. The effects of such investment are seen in many aspects. Every airplane of the Airbus enjoys the most advanced technologies including compound structure that reduces the weights, fuel-saving air design, cockpit featuring easy maintenance and operations for pilots and machinist. Such technical equipment has become standardized for all Airbus airplanes and requires no more additional costs. All aircraft of the Airbus has similar cockpits, which is unique in the world. In addition, the aircrafts' electronic operating system reduces training time greatly and enables pilots to fly a different plane easily. Recently Airbus succeeded in conducting an air refueling experiment at its multipurpose tanker aircraft A310, which provides an economic solution for users in army, for it not only fulfill the need to transport cargo and passengers but also perform air refuel.

On cooperation with China, five Chinese aviation enterprises produce spare parts for wings and cabin door for Airbus, says Mr. Barron. Since Sept 2002, Airbus has strengthened cooperation with Chinese industry and signed with Chinese aviation enterprises a subcontract for production worth USD 250 million. The new cooperation agreement it signed with the China Aviation Corporation I will include subcontract for making spare parts for A380, the largest airplane in the world. In the first half of this year, a trailer carrier made at the Nanjing-based Jinling Shipyard used to transport A380's parts has been handed over. The Shenyang Aircraft Group has delivered its 3,000th emergency exit door for A320. According to Airbus' plan, the amount spent on purchasing from Chinese enterprises will rise from US$ 10 million to 60 million by 2007. One fourth of its 3, 500 planes flying in 180 airlines around the world are using spare parts made in China. Recently Airbus earmarked US$80 million to build a world-class aviation training and aids center.

Cooperation with China is one of Airbus' strategies because China is not only a huge potential market for civil airplanes, but also has strong competence in civil aircraft making. Airbus hopes to become a part of China's miracle of economic growth, says Mr. Barron.

By People's Daily Online