China could enter Airbus' "Tier 1" international supply team as
China Aviation Industry Corp I (AVIC I) has vowed to bid for
Airbus' six European production plants.
While this ambitious plan would have a far-reaching impact on
China's development of its own large aircraft, the road to realize
this dream could be bumpy, say industry insiders.
AVIC I, a long-time subcontractor of Airbus, said on Tuesday
during the Paris air show that it would bid to invest in or buy the
six plants Airbus plans to sell. As part of the Power8
restructuring plan, Airbus is hiving off the plants to save
costs.
The first three sites will be Filton in Britain, Meaulte in
France and Nordenham in Germany.
Airbus will bundle the composite material work packages of the
A350 in the plants it will sell, Fabrice Bregier, Airbus chief
operating officer, said at a press conference in Paris on Tuesday.
Airbus is expected to select the first group of risk-sharing
partners in summer, Bregier said.
The other three sites are Laupheim and Varel in Germany and
Saint-Nazaire in France.
"The first problem AVIC I faces could be 'political
interference'," said a senior analyst with the Civil Aviation
Management Institute of China.
"China has expressed a strong will to break the duopoly of
Boeing and Airbus in the global aviation market. Neither the US nor
Europe would overlook the possibility of emergence of a
competitor," said the analyst, who declined to be named.
Although Airbus has subcontracted manufacturing work to China
for more than 20 years, AVIC I is still just a component
supplier.
"Another problem is whether AVIC I can meet the stringent
requirements of Airbus. AVIC I still needs to improve in terms of
labor efficiency, optimization of tools, and supply chain
management," said Li Lei, an aviation analyst with CITIC China
Securities.
"Airbus is looking for capable partners who can share its
development and production risks, not someone creating new risks,"
Li said.
An AVIC I official told China Daily yesterday that the
bidding process would be difficult. "There are many strong bidders
and political uncertainties," the official said on the condition of
anonymity.
Airbus' Filton plant produces wing parts, with Meaulte
assembling the nose sections, including the cockpit, and Nordenham
making fuselage shells. Laupheim specializes in cabin interiors and
Varel produces complex machined structural components and tooling.
Saint-Nazaire assembles, equips and tests the front and central
sections of Airbus aircraft.
(China Daily June 21, 2007)