Local carriers sign for more aircraft and manufacturer plans major subcontract boost
Airbus is closing on its third A330 sale in China, to Air China, among a series of deals as the company prepares a major expansion of subcontracts with local suppliers. The flag carrier has separately signed a deal for six more A319s, while China Eastern Airlines has firmed up a 20-aircraft A330 deal, powered by Rolls-Royce Trent 700s.
Industry sources confirm that Air China signed an A330 memorandum of understanding with Airbus recently. It is not clear how many the deal covers, but the sources say it is at least five - all -200 variants for use on international services. Government approval has yet to be secured, but if a deal is finalised Air China will be the third Chinese carrier committed to the widebody type, after China Southern Airlines and China Eastern.
The sources say Airbus was hoping to announce an Air China A330 deal during a visit to China by French president Jacques Chirac on 9 October. It was also hoping for a long-sought-after commitment from China for A380-800s. No such deals were announced during Chirac's visit, although Air China did commit to firm orders for six additional A319 narrowbodies for delivery from next year, while China Eastern firmed up a previous deal for 20 A330-300s. The A319s are to be powered by CFM International CFM56-5 engines and will be used primarily on services to high-altitude airports in Tibet.
Meanwhile, China Eastern has selected the Trent 700 for its A330s, which will be used in part to replace older Airbus A310s and A300s from 2006. The airline has a large A320 family fleet, and is poised to introduce the first of four A321s it has on order. China Southern placed the first Chinese order for A330s in 2003, opting for four longer-range -200 variants. It also selected the Trent 700 to power its aircraft, deliveries of which are to begin next year.
In the meantime, Airbus says it plans to increase the value of its annual procurement from China to $120 million by 2010 - double the amount it expects for 2007. "Airbus has already committed to increase its industrial procurement from Chinese suppliers from today's level of around $15 million, to $60 million by 2007," it says, adding that it "plans to further increase its procurement from China, making it reach $120 million by 2010".
Five Chinese companies produce parts for Airbus: Chengdu Aircraft, Hong Yuan Aviation Forging & Casting, Guizhou Aviation Industrial Group, Shenyang Aircraft, and Xian Aircraft.
NICHOLAS IONIDES / SINGAPORE
Source: Flight International
