Airbus Is Growing Fast on the Chinese Commercial Aviation Services Market
China Aviation Daily | Nov. 07, 2018
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In order to best serve the growing fleet forecasted in China (over 7,400 new aircraft deliveries over 20 years), and better understand Chinese customers' needs and environment Airbus is accelerating its development in China on the Services market for commercial aviation to help them optimize their operations.
Airbus estimates the Chinese Services market at US$750 billion over the next 20 years and ambitions to significantly grow service revenues in China in the coming years. Therefore, it has started to extend its service offering, leveraging digital technologies and implementing airframe repair embodiment operations in 2018, developing local partnerships and co-operation in several domains such as composite component repairs, in addition to the already existing services: training, flight operations support and services, fleet management, supplier management, repair engineering, technical data and materials' management.
The company is investing +20% resources each year, opening new local facilities at a fast pace.
The Airbus' team includes as of today 4 subsidiaries and JVs: Satair for material management, Eltra for component repairs and 2 JVs with Hua Ou in the areas of training and support for spares Warehouse.
Implementation of a local team enables Airbus to provide customized answer and quickly support the airline needs thus helping secure safe operations and optimise fleet operational reliability for Chinese operators.
Airbus' services are becoming increasingly successful on the Chinese market as demonstrated by the deals recently signed:
- Flight Hour Services (FHS) components contract with Hainan Airlines for its A350 fleet, confirming Airbus leading position on A350 FHS market in Asia-Pacific region
- Retrofit contract to equip 30 Sichuan Airlines' A320s with Head-Up Display equipment, to improve flight on-time performance and reduce minima in low visibility operations, as well as to enhance pilots situational awareness and safety margins..
- China Aviation Supplies Company (CASC), a subsidiary of China Aviation Supplies Holding Company (CAS) signed an agreement with Airbus on fleet spare procurement and repair services.
- Airbus Managed Inventory (AMI) extension contract between Airbus' subsidiary Satair and GAMECO for A320s, A330s and A380s. GAMECO was the first customer in China for Satair's AMI solution which supports aviation customers in reducing their inventory holding costs for high-usage and non-repairable Airbus parts.
- Airbus' China-based ELTRA subsidiary extends its service to Emirates as the first customer in Middle East. With its cost effective component repair solution, Emirates will benefit from the Airbus recently extended Chinese repair station (2,200 square meters) in Beijing
Through these significant investments and partnerships, Airbus Services intends to develop a stronger local presence in China and offer value adding services to the local commercial aviation community by leveraging digital technologies, thus helping the Chinese aerospace industry to reach new levels of efficiency and profitability.
Contributed by Airbus