Chinese airlines are being pushed by Airbus to put orders for planes before all of the delivery slots for the upcoming decade are filled. Early orders are crucial since aviation researchers predict that China will continue to have an increasing need for aircraft, particularly widebodies, long into the 2030s.
Boeing in China
By 2026, Airbus intends to establish a second assembly line in Tianjin for single-aisle aircraft, specifically the A320 family. The A321neo has grown in popularity in recent years, and the planemaker has emphasized how flexible the new line’s production will be. The Tianjin line has been busy building planes for the domestic market, but it recently broadened its reach when Wizz Air ordered the first A321neo built in China and shipped to Europe. Airbus wants to guarantee that its Chinese order book is secure for the ensuing ten years, with plans for up to 75 aircraft per month by 2026, the year the second plant is put into operation. George Xu, the CEO of Airbus China, was interviewed by Bloomberg regarding airline bookings from Chinese carriers. The interviewer noted that widebody slots were swiftly filling up with orders from India and the Middle East. Xu said,
“I believe that the slots availability is really moving very quickly, and this is the first issue we need to talk about with Chinese airlines and stakeholders. We have made an effort to move this conversation along with our Chinese clients so they can get a clearer picture and place orders as soon as feasible. To deal with the current significant disparity between supply and demand, we must take this action with our clients.It’s important to note that, by aircraft family, Airbus’ global production line capacity as of Spring 2023 is as follows:
A320, A330, and A350 (formerly A380) are available from Toulouse, France.
Tianjin, China: A320 Hamburg, Germany: A320 Mobile, Alabama, US: A220 and A320 Mirabel, Canada: A220
Because it fills a “unique market niche” for the Chinese market and can be built more quickly than the A320 family thanks to early manufacturing slots, the A220 was also cited by Xu as a great substitute. But this wouldn’t be made in Tianjin, and the market hasn’t yet made a purchase of this well-liked narrowbody.
Chinese widebody market and demand
More than 20% of the global aviation market comes from China. According to Aviation Week, Airbus’ market share increased from 10-15% in 2019 to over 2,100 aircraft and 50% in 2019, making it the top supplier.Furthermore, 3 190 single-aisle and 449 twin-aisle aircraft are operated by around 50 Chinese carriers, according to Bloomberg. However, with an average age of just eight years, Air China, China Eastern, and China Southern account for nearly two thirds of the nation’s fleet.
The success of Airbus’ production lines in Tianjin is crucial.
The Airbus production facility in Tianjin contributes to this dominance. On the Aviation Week podcast, Sash Tusa, an analyst and partner at Agency Partners, pointed out
It is quite difficult to avoid the conclusion that manufacturing and assembling aircraft in China gives you a stronger position on the market than bringing aircraft in by plane for delivery. Alternatively, you could fly them to a finishing facility, such as the Boeing Zhoushan Center, paint them, add seats, and then deliver them.
The fleet of Chinese freighters
China’s commercial cargo fleet has increased from 6 to 200 aircraft between the years 2000 and 2022, according to Ascend by Cirium. The Boeing 767F and 777F must stop production by 2028, absent a waiver that Boeing is requesting, and until any future 787 and 777X freighters come online, demand for Airbus’ A330F and the A350F prototype presently under development may soar.Another reason Airbus is aiming to encourage airlines to place their orders early is the projection that China would have about 340 widebody freighters by 2041.
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SOURCE: https://simpleflying.com
