Airbus is launching a major campaign to raise its market share in Asia-Pacific, focussing particularly on Japan and China, chief executive Noel Forgeard said yesterday.
The manufacturer wants to raise its market share in the region to the 50% it enjoyed worldwide in 2001. It currently stands at 43% overall region-wide, but languishes at around 20% in Japan.
He says the company has memoranda of understanding or expressions of interest from Chinese airlines for 70 A320 aircraft but the sales are dependent on central government approval.
Backlog
"Our share of the total Asian backlog (of aircraft), without Japan, is 43% so we are not at the same extent as our backlog figure worldwide which is 54%, though it is better than the figure of 30% of 10 years ago," says Forgeard.
"Japan will be the top priority for Airbus and we now have a fully-fledged commercial team in Japan. Japan is clearly a stronghold of our competitor but we see good opportunities."
Airbus is in Japan in force in April to make presentations to the financial community and with the airlines. The merger of Japan Airlines and Japan Air Systems to create a new super-airline, together with the process of consolidation of the Chinese industry opens up real opportunities to gain market share, says Forgeard.
Chief commercial officer John Leahy comments: "Anything that improves efficiency in the airline system is good for the manufacturer."
Turning to the mood at Airbus, Forgeard says that despite the economic downturn and the events of 11 September, there is cautious optimism about the market.
"It is encouraging to see how the aviation industry is recovering, particularly in this region. There is clearly an improvement in loads and some airlines are re-introducing frequencies and destinations. The Asia-Pacific market starts to see hints of recovery following a difficult period which started with the Asian financial crisis of 1997 and, more recently, with the econonic slowdown, exacerbated by 11 September. Recovery is something we have never doubted in Asia-Pacific, putting Japan aside for a moment."
The manufacturer expects to build around 300 aircraft in 2002, down from the 325 delivered in 2001 and less than the 380-400 aircraft originally planned.
Says Forgeard: "We shall assess the situation in the second quarter of this year but we are cautiously optimistic that we can keep the production rate at the 300 for 2003."
Source: Flight Daily News
