Aerospace
How Airbus gained trust in the Chinese aircraft market ?
- Nearly 300 Airbus planes have been ordered by three Chinese carriers.
- At least $37 billion worth of orders were won by Airbus.
- Airbus holds market share in the country to about 53 percent.
Boeing was unhappy when the China Three Airlines placed the largest order for Airbus aircraft, according to a report in the Global Times China. However, a number of issues contributed to Boeing’s loss of the contract.
According to Global times report, US plane manufacturer Boeing has suffered a setback as a result of the agreements reached by China’s three largest airlines to buy nearly 300 planes from Europe-based Airbus. In response to the new agreements, Boeing claimed that “geopolitical differences” are restricting its exports and called for “productive dialogue” between the governments of China and the US.
In stark contrast, Boeing expressed disappointment in a statement. “As a top US exporter with a 50-year relationship with China’s aviation industry, it is disappointing that geopolitical differences continue to constrain US aircraft exports,” Boeing said on Friday. “We continue to urge a productive dialogue between the governments given the mutual economic benefits of a thriving aviation industry. Boeing aircraft sales to China historically support tens of thousands of American jobs, and we are hopeful orders and deliveries will resume promptly.”
The source claims that Boeing is imposing restrictions on a number of areas, including the maintenance and repairs of Boeing aircraft, which affects the equipment’s capacity to operate safely and the dependability of aviation services. This matters a lot to airline operators.
Before the Boeing 737 Max crashes, analysts claim that China had a balanced market share for Airbus and Boeing aircraft. Additionally, the current crackdown on Chinese enterprises poses significant risks and hurdles for international corporations engaged in trade.
- China and Airbus relationship
With the signing of a Memorandum of Understanding on the Further Development of Industrial Cooperation in 2019, Airbus and China strengthened their already strong relationship. Under this agreement, both parties committed to taking concrete steps toward new initiatives involving single-aisle and wide-body Airbus aircraft.
Airbus has a wide and narrow body assembly plant in China. Both the first contemporary mainline aircraft assembly line in China and the first Airbus production facility outside of Europe are located in Tianjin. Over 500 planes have already been delivered by the facility to local airlines. Airbus said in 2021 that its Tianjin facility would grow and gain the ability to produce the Airbus A321 aircraft. The completion of the project is scheduled for the third quarter of 2022. More than half of all A320neo series aircraft orders are for the A321neo.
For the first time in over three years, China’s three largest state-owned airlines announced deals to purchase 292 A320neo aircraft from European aircraft manufacturer Airbus for a combined $37 billion. The additional orders, which the airlines estimate to be delivered between 2024 and 2027, will help them expand their flying capacity and fulfil their replacement needs when older aircraft are retired, they claimed.
China’s top 3 airlines will purchase nearly 300 Airbus A320neo aircraft.(Opens in a new browser tab)
- About 53% of the country’s market is held by Airbus.
Airbus’ continued investment in China in the past decade has helped lifted its market share in the country to about 53 percent now and steal a march over its US rival Boeing Co. According to reports, Airbus has dominated the Chinese market through increased manufacturing and investments there. This has boosted the country’s economy and allowed Airbus services to benefit airlines. Most airlines respond quickly to inquiries about safety and services. When there is a greater need for aircraft and the corporation needs to develop a long-term vision for the nation.
China’s TP500 freight drone makes its maiden flight.(Opens in a new browser tab)
A well-known aircraft manufacturer, Embraer, is in talks to partner up with Tata Group and Mahindra Group to build up local manufacturing capabilities in India. With the help of this strategic alliance, India’s aerospace sector will expand, domestic manufacturing will be strengthened, and jobs will be generated.
“Tata told us that their initial focus would be on large aircraft, including Airbus and Boeing. After that, they would consider smaller, regional aircraft, and there is the market where we are,” according to president and CEO Francisco Gomes Neto.
While Airbus and Boeing dominate the market for bigger commercial planes, Embraer is a market leader in regional aviation. By the end of 2023, the business wants to have decided on an Indian partner for the production of defense aircraft.
The Indian Air Force (IAF) is looking for medium-transport aircraft that have a lifting capacity of 18 to 30 tonnes. It aims to finish this search by 2025 or 2026. The C-390 Millennium multi-mission tactical air transport aircraft, the newest defense offering from Embraer, which debuted the plane at Aero India 2023 in Bengaluru in February, has been pushed for the order.
According to CEO Neto, Embraer sees “a good opportunity” in India. “The IAF has already seen our aircraft, and they approve. We have received positive feedback about the C-390 Millennium from nations like the Netherlands. We believe that the C-390 Millennium is the greatest option for that size of aircraft.
The Indian defense aviation market is not new to Embraer. The business has previously worked with the Defence Research and Development Organisation (DRDO) to produce three Netra airborne early warning and control (AEW&C) aircraft based on the ERJ145 platform of Embraer, which are used by the Indian Air Force (IAF). The IAF and the Border Security Force (BSF) both use Embraer Legacy 600 aircraft to fly VIPs and government officials.
The partnership combines the skills and strengths of each partner. Together with Tata Group’s manufacturing capabilities and Mahindra Group’s technical know-how, Embraer’s extensive domain understanding and technological expertise in the aerospace sector form a potent partnership that can provide high-quality products and solutions.
Embraer, Tata Group, and Mahindra Group’s cooperation paves the way for sustained success and growth. This cooperation can investigate the potential in both domestic and foreign markets as the demand for aircraft goods and services keeps growing. Together, it can boost India’s position as a major center of manufacturing, which would benefit the country’s aerospace sector as well.
The first B-52 from the U.S. Air Force has landed at Boeing to start receiving improvements under the Radar Modernization Programme.
The RMP programme will equip the B-52 with “fighter-like” radar capabilities, enhancing navigational precision, targeting, and tracking, as well as delivering fresh, high-resolution mapping. Additionally, numerous targets can be engaged at once by the new radar.
Why Is the B-52 Bomber Being Relaunch by the US Air Force?(Opens in a new browser tab)
According to Jennifer Wong, director of Bomber Programmes, “The B-52 brings unique, critical capabilities to the U.S. Air Force as they move to a future two-bomber platform strategy.” We are improving the B-52 radar to make the aircraft more relevant to the warfighter for tactical assault or close air support.
Boeing started low-rate initial manufacture of the new radar system for operational test and evaluation after the radar programme Critical Design Review was completed on schedule. Modernization of the B-52 is being done at Boeing facilities in San Antonio and Oklahoma City.
Modern active electronically scanned array radar, two big area touch-screen displays with high clarity, two display sensor system processors to link the radar with other B-52 systems, two hand controllers, and a new wide-band radome on the aircraft’s nose are all part of the RMP programme modifications.
Volaris, a Mexican ultra-low-cost airline, is the first airline based outside of the United States to receive an Airbus A320neo built in Airbus’ Alabama production site.
By May 30, 2023, Airbus’ North American operation in Mobile, Alabama, had built 385 aircraft from the A320 and A220 families. But up to this point, all 13 customers—US airlines—had received these deliveries.
Airbus delivers its first aircraft produced in the USA.(Opens in a new browser tab)
A third Final Assembly Line, is now being added as part of a proposal to expand Airbus’ Alabama business and boost A320 Family aircraft manufacturing.
According to the Alabama Department of Commerce, the expansion will result in the creation of 1,000 jobs. In Latin America and the Caribbean, Airbus has sold more than 1,150 aircraft. In the region, more than 750 are in use, and another 500 are in the order backlog, accounting for a market share of approximately 60% of passenger aircraft now in service.
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