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The final assembly line of the Airbus A320 in Tianjin. [Photo/Xinhua]
China is the first major market in which Airbus SE, the European aircraft manufacturer, has seen a recovery in demand since the new coronavirus epidemic, according to a senior company official.
“We plan to deliver 100 aircraft to Chinese carriers this year and we expect the volume to represent 20 percent of our shipments globally,” said George Xu, chief executive of Airbus China, in an interview with China Daily.
“China will become a very important strategic market for Airbus,” Xu said.
China received only 14 Airbus aircraft during the first six months of the year. But in July and August, China received another 14 aircraft, marking a significant improvement in the pace of recovery. Due to the new coronavirus epidemic, most carriers had faced difficulties in aircraft deliveries. In 2019, China received 173 aircraft from Airbus.
“The coming months will be a challenging time for Airbus as it rushes to meet delivery targets in China and the Tianjin plant will operate at full capacity to meet the requirements,” he said.
The Tianjin facility, which has been in operation for more than a decade, serves as Airbus’ first final assembly line for single-aisle aircraft and the first completion center for wide-body aircraft outside of Europe.
Lin Zhijie, aviation industry analyst and columnist for Carnoc, a leading civil aviation website, said that given the current situation, the China market is more important to Airbus and there is more room for growth. “Basically, the epidemic is being controlled in China and the Tianjin facilities have fully resumed production. Aircraft deliveries to China will gradually return to a regular level,” he said.
“The overseas air travel market has recovered to only 40 to 50 percent of its pre-pandemic level, and there is still a long way to go. In addition, the grounding of Boeing B737 MAX aircraft and the uncertainties about Sino-US relations will be an unprecedented growth opportunity for Airbus. And Airbus could even gain an overwhelming advantage if it seizes the opportunity, “Lin said.
Airbus’s Xu said that despite the epidemic, the supply chain must not be interrupted. He has been in close contact with the supply chain in China to ensure a smooth adaptation, and the local government in Tianjin has supported him. The Airbus facility in Tianjin was one of the fastest and earliest recovery branches.
“China plays an important role in Airbus’ supply chain and is a critical force for scientific innovation. There are many competitive Chinese companies in the field of artificial intelligence and digitization. Airbus looks forward to cooperating with them,” he said.
China’s domestic air travel market is steadily recovering. Since August, the number of scheduled flights in the domestic market has exceeded 13,300 a day, and the number of available seats has exceeded 2.2 million a day, both figures reaching almost 80 percent of the levels recorded last year, according to the Administration of Civil Aviation of China.
On the other hand, Airbus has experienced increasing demand in the air cargo market. He frequently communicates with freight forwarding companies in China and discusses what type of aircraft can meet their demand in terms of performance, efficiency and costs, Xu said.
Air cargo is playing an increasingly important role in the fight against COVID-19, as a significant number of passenger planes have been grounded. Eastern Air Logistics Co, the cargo unit of Shanghai-based China Eastern Airlines, has converted more than 10 wide-body passenger aircraft into cargo carriers.
As a major player in the aviation industry chain, Airbus has also been hit hard by the pandemic. The company has taken several steps to survive, including fighting to get credit support of 15 billion euros ($ 17.8 billion) and slowing down aircraft deliveries.
It also plans to lay off 15,000 people around the world and has canceled some less important investment projects to ensure cash flow supports smooth production. So far this year, Airbus has received confirmed orders for more than 300 aircraft around the world. Last year, it received 768 confirmed orders globally.
