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Airbus forecasts global demand of 37,390
passenger, freighter aircraft in 20 years  

LONDON United Kingdom (Xinhua) -- The world’s passenger fleet will more than double to 48,000 aircraft in 20 years with traffic growing at a resilient 4.4 percent per year, driving a need for 37,390 new passenger and freighter aircraft, Airbus said in its new Global Market Forecast 2018-2037 released Friday in London.

According to the report, growth drivers include private consumption increasing 2.4 times in emerging economies, higher disposable incomes and a near doubling of the middle classes globally. Emerging countries will account for over 60 percent of economic growth, with trips per capita to multiply 2.5 times for these nations. Combined with evolving airline business models and continuing liberalisation, the growing scale of air transportation will lead to an increasing resilience to regional slowdowns.

Greater aircraft range and capacity through technological developments allow airlines the flexibility to explore new business opportunities whilst maintaining focus on cost reduction.

“There is a growing trend to use aircraft across a broader range of operations, with today’s more capable aircraft blurring the boundaries between market segments. These realities made us develop a new segmentation with Small, Medium, Large and Extra-Large categories, reflecting more closely the way airlines operate aircraft,” said Eric Schulz, Airbus Chief Commercial Officer.”

According to the report, in the Small segment typically covering the space where most of today’s single-aisle aircraft compete, there is a forecast future requirement for about 28,550 new aircraft, representing more than three-quarters of total expected demand.

In the Medium segment, for missions requiring additional capacity and range flexibility, represented by smaller widebodies and longer-range single-aisle aircraft, Airbus forecasts demand for around 5,480 passenger and freight aircraft.

For additional capacity and range flexibility,, there is a need for about 1,760 aircraft. In the Extra-Large segment, typically reflecting high capacity and long range missions by the largest aircraft types, Airbus forecasts demand for nearly 1,590 aircraft over the next 20 years.

Of the 37,390 new aircraft required, 26,540 are for growth and 10,850 will replace older generation less fuel efficient aircraft. The more than doubling in the world fleet to 48,000 aircraft results in a need for 540,000 new pilots. Airbus continues to evolve its service business to meet the needs of its growing customer base.

Airbus’ CEO Tom Enders told Xinhua that his company attaches importance to China’s market as Airbus is increasing procurement from Chinese partners.

“Well absolutely I mean the market is vital for us otherwise it would not been the market, the place that we put our first final assembly line (outside Europe)ever. We have expanded on this foot print, we are now having a completing center also for A330, our corporation volume, our procurement volume with Chinese partners is steadily increasing. And I am absolutely positive on our further development in China.”

Schulz also said China’s market is a very important one out of all of the market in the world because is the fastest growing single market.

“Basically in China today the rate of air transport is quite low and the middle class population is flying less than basically 0.1-0.2 flight to year, which means basically that is where the big growth is coming and of course we are working very very close with all of our Chinese customer which are as you know, big range of customer including leasing companies because this is the market that is also accelerating on the leasing side as well as on the passenger commercial side,” he said.

Airbus is a global leader in aeronautics, space and related services. In 2017 it generated revenues of 59 billion euro restated for IFRS 15 and employed a workforce of around 129,000. Airbus offers the most comprehensive range of passenger airliners from 100 to more than 600 seats. (1 euro = 1.17 U.S. dollars)



Spotlight: China’s reform, opening-up enables Airbus to fly higher

By Han Qian PARIS France (Xinhua) -- China began its historic journey of reform and opening-up in 1978. In the past 40 years, the drive has lifted the country into the world’s second largest economy.

Over the past 40 years, China’s GDP has averaged an annual growth rate of around 9.5 percent in comparable prices.

The long-held policy not only brings China rapid and sustainable development, but also enables the country to have contributed greater momentum to global economy and created huge opportunities for multinationals.

Among them is Airbus, Europe’s largest aircraft manufacturer.

Airbus embarked on its partnership journey with China more than three decades ago. In 1985, China bought its first Airbus aircraft; in 1994, the group established its first official presence in Beijing.

“I am particularly proud of this history,” Airbus CEO Tom Enders told Xinhua in a recent interview.

Enders noted the partnership between China and Airbus had taken a leap forward over the past 10 years, with the group’s first final assembly line outside of Europe beginning operation in Tianjin in 2008.

The group has remarkably expanded the number of its commercial aircraft sold to China. By late 2017, there were more than 1,500 Airbus commercial jetliners in service in China, and deliveries to the country represent nearly a quarter of Airbus’ total jetliner production.

Also in 2017, Airbus announced the establishment of its second global innovation center, following the one in Silicon Valley, in Shenzhen, the pioneering city of China’s reform and opening-up.

Nowadays, more than 1,900 Airbus employees work in China, many of whom at the final assembly line in Tianjin, which had assembled and delivered 352 A320 aircraft by late 2017.

As head of the Tianjin final assembly line project, Laurence Barron, former CEO of Airbus China, has a vivid memory of how vegetable fields turned into a factory in two and a half years and rapidly developed into a new industrial zone.

“Change is the word I would use to describe modern China. Subways, roads, a new airport open in Beijing next year...everything has changed at a very fast speed in Beijing and that’s one of the reasons I like to live there, because it is a very dynamic city,” Barron told Xinhua in an interview.

The first time Barron went to China was in the summer of 2003. He took office as the CEO of Airbus China one year later and has worked and lived in China ever since.

Barron recalled that from 1985, when Airbus delivered the first aircraft to China, to 1994, when Airbus set up its official bureau in Beijing, fewer than 20 Airbus aircraft had been delivered to China.

“The achievements made by Airbus in China is a good example of how foreign companies can take advantage of the reform and opening up and better position themselves in China,” Barron said.

Having witnessed Chinese reform and opening up, Barron said many of the restrictions and obligations for foreign companies to set up businesses in China have been eased and relaxed, which will certainly encourage more foreign companies to go to the world’s largest emerging economy with vast market potential,

“Opening up is a win-win for both foreign companies and China,” Barron said.

At the 2018 annual conference of the Boao Forum for Asia in April, China announced several significant measures to enhance opening up, including cutting auto import taxes, and has promised to ease limitation on foreign equity in banking, security, and insurance industries.

Enders said that over the years of cooperation with China, Airbus has had an increasing number of partners and suppliers in the country. Meanwhile, the global leading aircraft manufacturer has also seen the Chinese aviation industry becoming more mature and competitive.

“We never underestimate the capabilities and strength of China’s aviation industry. We believe that China can create competitive products. Competition is a good thing for the aviation industry,” said Enders.

Today, beyond its role of important customer and supplier to Airbus, China has also become a strategic partner for the company. The cooperation spans various areas, from commercial aircraft to helicopters, defense, space, and innovation.

Airbus’ helicopter division in China held a 40 percent market share as of late 2017. An H135 helicopter final assembly line is under construction in Qingdao, Shandong province, which will become the first H135 final assembly line outside of Europe.

Recent reforms passed in China will help open lower-altitude airspace in the coming years, handing flight control from the military to civil aviation authorities. With only 900 or so civil helicopters in service in the whole country (as of late 2017), this will lead to tremendous possibilities for growth, making China the future world’s largest rotorcraft market.

Xu Gang, CEO of Airbus China said Airbus’ cooperation with China had been fruitful in the fields of market, capital, industry, and innovation and has made great progress in the past.

Xu said with China’s further reform and opening up, the company will seek more cooperation opportunities and integrate more deeply into China.

“For any multinational company, China is a huge market, we should be more proactive in thinking, investing and exploring cooperation opportunities.”

China is expected to overtake the United States as the world’s largest aviation market by 2024. More opportunities will certainly emerge from the Chinese sky, Airbus aims to have 2,000 aircraft operating in China before the end of 2020 as demand continues to rise.


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