Airbus: 'China market will soar' ( 2003-09-30 10:06) (China Daily)
To meet ever-growing demand for passenger
airplanes in China, Airbus officials say they expect to sell 50 newly developed
A380s -- currently the largest passenger plane in the world -- to the Chinese
market, a top company official has told China Daily.
John Leahy, chief commercial officer of the European airplane manufacturer,
said China is expected to need 1,600 airplanes in the next 20 years.
"While 129 A380s have been sold worldwide, we are hopeful that by the 2008
Beijing Olympics some A380s will be flying in Chinese colours,'' Leahy said.
Airbus's major competitor, US-based Boeing, is also eyeing the promising
Chinese market, which it predicts will need more than 2,300 airplanes in the
next two decades. That places China as the second largest airplane market in the
world, after the United States.
The different numbers forecast by the two manufacturers are a result of
Airbus not including aircraft with the capacity to seat fewer than 100
passengers, Leahy explained.
The Airbus executive made the remarks in Guangzhou yesterday where he signed
a contract with China Southern Airlines, one of the country's top three
carriers, striking a deal for four mid- and long-range A330-200s produced by
Airbus. The pact is part of the General Terms Agreement signed by China Aviation
Supplies Group with Airbus in April, which involved a bulk order of 30 Airbus
airplanes.
By making its debut on the Chinese mainland, the A330-200 will represent
Europe's surging 330/340 aircraft family. Airbus has already booked more than
800 orders worldwide.
Airbus officials say they are proud that the 330/340 family has achieved an
85 per cent share in the medium passenger aircraft market. In particular, the
A330-200 is dwarfing Boeing's B767 in sales orders, and is forcing the
Chicago-based competitor to design a new aircraft, the B7E7.
Airbus executives say they are not at all worried about the "paper airplane''
that is yet to be put into production. The earliest launch year for the 7E7,
Leahy said, will be about 2008 to 2010. And before that, Airbus's A330 will be
sold without any major competitive worries.
Even if Boeing's 7E7 finally comes to market, Airbus will not see it as a
major threat, company officials said. Many of the so-called next-generation
technologies to be applied on the new aircraft are already used by Airbus,
except for the engine. Yet Airbus can apply newly acquired engine technology to
existing aircraft,Leahy noted.
Airbus's optimism is not without reason. In the past couple of years,
Boeing's sales have been in decline when compared with Airbus.
In 1999, Boeing delivered 620 airplanes, accounting for 68 per cent of the
world's market. This year it is expected to deliver 285, leaving Airbus a market
share of 51 per cent, a majority share for the first time in history.
Leahy tried not to be too aggressive when asked to comment on Boeing's woes.
"The answer is not what is wrong with Boeing, but what is right for Airbus,''
he said.
Airbus's success is a combination of providing comfort to passengers,
so-called "green'' technology featuring noise reduction, and investing more
money in support systems, Leahy explained.
