Chinese Aviation Industry

Cessna, China's AVIC in JV talks to build Cessna jets


Cessna Aircraft Co, the world's biggest business jet maker, signed two agreements on Friday with Aviation Industry of China Corp (AVIC), formalising talks for a joint venture that would manufacture Cessna business jets in China.

According to a joint statement, Cessna, a subsidiary of diversified U.S. manufacturer Textron Inc, AVIC and the Chengdu municipal government will start discussions to form a joint venture for production of mid-sized Cessna business jets and new products for the business jet market.

AVIC and Cessna also agreed to jointly pursue a general aviation business in China, including forming an aircraft services network.

"China's market potential is tremendous and therefore represents an exciting opportunity for Cessna," said Cessna President and Chief Executive Scott Ernest.

Cessna's rival Gulfstream expects demand from China to remain strong despite signs of a slowdown in the world's second-largest economy, its President Larry Flynn said in December.

The General Dynamics Corp subsidiary, which counted on the United States to generate 80 percent of its business 10 years ago, received half of its global orders from Asia-Pacific in 2011, said Flynn.

Late last year, Gulfstream secured an order for 20 jets from China Minsheng Banking Corp , its largest order in 2011.

2011 Airport PAX Data: Top 50 China mainland airport ranking
Rank - Airport - Passengers - %

1 Beijing - Capitol 78,674,513 6.4
2 Guangzhou 45,040,340 9.9
3 Shanghai - Pudong 41,447,730 2.1
4 Shanghai - Hongqiao 33,112,442 5.8
5 Chengdu 29,073,719 12.7
6 Shenzhen 28,245,738 5.7
7 Kunming 22,270,130 10.3
8 Xi'an 21,163,130 17.5
9 Chongqing 19,052,706 20.6
10 Hangzhou 17,512,224 2.6
11 Xiamen 15,757,049 19.3
12 Changsha 13,684,731 8.4
13 Nanjing 13,074,097 4.3
14 Wuhan 12,462,016 7.0
15 Dalian 12,012,094 12.2
16 Qingdao 11,716,361 5.5
17 Urumqi 11,078,597 21.1
18 Sanya 10,361,821 11.5
19 Shenyang 10,231,185 18.7
20 Haikou 10,167,818 15.9
21 Zhengzhou 10,150,075 16.6
22 Jinan 7,879,707 14.2
23 Harbin 7,841,521 8.0
24 Tianjin 7,554,172 3.8
25 Guiyang 7,339,228 17.0
26 Fuzhou 7,196,800 11.1
27 Nanning 6,464,428 14.8
28 Taiyuan 5,876,005 11.9
29 Wenzhou 5,598,674 5.1
30 Guilin 5,489,481 4.4
31 Nanchang 5,347,853 12.6
32 Ningbo 5,014,002 11.0
33 Changchun 4,971,667 4.7
34 Hefei 4,398,739 15.2
35 Hohhot 4,331,529 18.2
36 Shijiazhuang 4,021,167 47.6
37 Lanzhou 3,809,023 5.7
38 Yinchuan 3,376,964 14.9
39 Wuxi 2,940,122 16.0
40 Beijing - Nanyuan 2,644,598 23.6
41 Yantai 2,547,499 2.1
42 Lijiang 2,183,597 -1.5
43 Xining 2,030,378 22.0
44 Quanzhou 1,975,836 -1.1
45 Xishuanbanna 1,918,825 1.7
46 Jieyang 1,901,856 10.1
47 Zhuhai 1,797,306 -1.2
48 Jiuzhai 1,717,603 -1.3
49 Lahsa 1,581,538 22.0
50 Baotou 1,345,598 1.0

Tianjin airport T2 construction

T2 construction was started on 5/31/2011. T2 will be built in 3 years with a total cost of 5.92 billion yuan. The target 2020 PAX is 25 million. T2 is the biggest terminal in the middle, the current T1 is the smaller one on the right




Construction progress 11.27.2011




2.15.2012




3.3.2012




3.23.2012

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Aviation companies are targeting the Chinese market in the expectation that Chinese businesses will show a greater demand for their services and as authorities relax airspace restrictions.

Christophe Degoumois, vice-president of business aircraft sales from Canada's Bombardier Inc, said on Monday that 2,360 business jets will be delivered to China by 2030.

"The company is expanding the team for sales and marketing in China," he said.

He said China is an important market, one that is home to increasingly wealthy individuals, a growing gross domestic product and a government intent on boosting domestic demand, especially consumer demand.

Degoumois made the remarks on the eve of the Asian Business Aviation Conference & Exhibition, which is to be held in Shanghai from Tuesday to Thursday. The exhibition is one of the largest such events held in the world.

China does not play a large role now in the business-jet industry. But that situation is changing fast.

Jing Yiming, vice-president of Shanghai Airport (Group) Co Ltd, said there were 132 business jets registered in the Chinese mainland in 2011, up from 32 in 2008.

"About 3,500 flights were taken by business jets in 2011 in Shanghai, making up a third of the total for the country," he said. "And we expect this year will see a 10 to 15 percent increase in traffic."

Jet-charter companies in China have also expanded considerably as the country relaxes its restrictions on the use of airspace.

"In the past, you had to apply for a route one week ahead of making a flight, while nowadays it takes only one day to apply," Jing said.

Kong Linshan, president of Minsheng Financial Leasing Co Ltd, said China's business jet market took off after the 2008 Beijing Olympics, seeing an annual growth rate of more than 150 percent. China is now one of the chief growth markets for business jets.

And China has worked increasingly harder to tap that market since 2009. Makers of business jets are expected to pay even more attention to the country during the next decade.

"China's business-jet market has become one of the markets with the most potential and is drawing more and more attention from around the world," he said.

Over the next three years, the Minsheng Financial Leasing's fleet will contain more than 100 jets. Those will be worth more than $4 billion and make up more than 90 percent of the Chinese market for those aircraft, he said.

In China's 12th Five-Year Plan (2011-15), the country's central government said general aviation will be one of the pillars of the country's economic development. The plan calls for developing the industry, building a large number of airplanes and relaxing airspace restrictions.

Aviation Industry Corp of China, the country's largest State-owned aircraft producer, said on Saturday it would cooperate with the US-based Cessna Aircraft Co to produce business jets. The companies and the municipal government of Chengdu in Southwest China plan to form a joint venture to produce business jets in that city.

Cessna Prepares To Start Citation Production in China

2012-03-26 Source: AINonline


The Citation Sovereign, here at ABACE 2012, and the Latitude are the two jets Cessna said will be produced in Chengdu and sold in China.

Cessna Aircraft and the Aviation Industry Corp. of China (Avic), this morning, are expected to give more details of their plans to begin joint production of business jets in China. The two companies are holding a press conference here at the ABACE show in Shanghai, following last Friday’s signing of two strategic agreements in Beijing’s Great Hall of the People.

One agreement involves Cessna, Avic Aviation Technologies Co. (AAT) and the Chengdu government, and calls for the three parties to enter into negotiations toward establishing a joint venture for production of midsize Cessna business jets, as well as potentially developing a new business jet.

The second agreement is aimed at jointly developing general aviation businesses in China, including the establishment of an aircraft service network. The partners plan to launch the joint venture companies called for in the second agreement “within the next year,” according to Cessna.

“China recognizes general aviation offers the foundation to support its national air transportation needs for the future,” said Scott Ernest, Cessna president and CEO. “These agreements will help take the industry to the next level.”

Details of the agreements “are still under discussion,” according to a Cessna spokeswoman, but their aims are ambitious. “The agreements together pave the way for a range of business jets, utility single-engine turboprops and single-engine piston aircraft to be manufactured and certified in China,” the spokeswoman said.

Cessna Citation jets to be produced in Chengdu and sold in China include the Sovereign, currently in production in Wichita, Kansas; and the midsize Latitude, launched last October. The Sovereign will continue to be built in Wichita for markets outside China, as will the Latitude once production begins. As per the agreement, Cessna is currently working with Avic to develop a new business jet.

Earlier this month, Cessna achieved a first flight for the Citation M2, the next-generation version of its Mustang light jet. Created to compete with Embraer’s Phenom 100, the M2 features a 400-knot maximum cruise speed and 1,300-nm range. Expected to enter service in the second half of 2013, the M2 is designed to fill the gap between the Mustang and the Citation CJ family. The Citation Mustang will remain in production.

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China Electronics Technology Avionics Co.ltd (CETCA) launches a joint venture on Tuesday with French firm Thales, to provide in-flight entertainment system on China's homegrown C919 passenger plane.

Zeng Li, General Manager of CETCA, and his counterpart of Alan Pellegrini, Chief Executive for Thales In-Flight Entertainment and Communications business, signed the agreement at the ongoing Aircraft Interiors Exposition in the Hamburg Messe.

The joint venture, which is located in Chengdu, capital of southwest China's Sichuan Province, and set to be fully operational by the end of the year, will bring together world-class technology solutions of the two companies and provide cutting-edge in-flight entertainment and communications avionic system onto the new C919 plane.

The partnership is expected to support the China-based production of the Thales Top Series system and integrate it into the cabin of the much-anticipated Comac C919, the aircraft China hopes will help establish the country as one of the world's top commercial aircraft-makers.

Designed and built solely by China's aviation industry, the C919 jumbo jet, with some 156-190 seats on board, is expected to take flight in 2014 and with its aircraft deliveries scheduled as of 2016.

The CETCA-Thales joint venture will provide with its exclusive and scalable platform offering services ranging from interactive audio device through to full in-seat on-demand services, with its advantages in minimizing weight, cost and power-saving, and future evolution including wireless networks and connectivity.

"CETCA and Thales are dedicated to establish this joint venture as a global center of Excellence which extends into research and development, production, adaption, maintenance for the in-flight entertainment market." Alan Pellegrini said, adding that this joint venture will augment Thales's extant market leading business share of IFEC, which is headquartered in Irvine, California, USA.

"The global strength of Thales Group and our investment and growth strategy in partnership with both CETCA and COMAC a strong combination that will ultimately change the landscape of the civil aerospace marketplace in China." said Olivier Guibert, President Thales China and North Asia region, adding that the Thales fully expected there will be excellent demand for the Chinese own-manufactured C919 jumbo jet in the market and the Thales was proud of being part of this business arrangement.

"Anyway, the ambitious C919 program is just the start, as China's aviation industry is under fast development and the partnership with Thales has great potential." according to Zeng Li, general manager of CETCA.

Over the next 20 years, the China civil aviation market is forecasted to deliver 4,330 new aircrafts with 71 percent being single-aisle aircrafts, as the newly-founded joint venture is in a position to leverage and evolve current technologies that optimize offerings for the single-aisle and regional market.

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With their more traditional territory hit by the global economic downturn, the world's aviation giants are rubbing their hands with glee over a take-off in demand for business jets in China.

At the 2012 Asian Business Aviation Conference & Exhibition (ABACE), which kicked off on Tuesday in Shanghai, there is real excitement at the opportunities presented by Chinese economic growth and the country's increasing population of nouveaux riches.

Of the 155 business aircraft sold globally by Boeing since 1999, 10 have gone to clients in China, including three last year, Steve Taylor, president of Boeing Business Jets (BBJ), told Xinhua at the conference.

And BBJ is expecting to sell another three to five of the jets, whose unit price is over 57 million U.S. dollars, to Chinese clients in 2012, Taylor added.

The ABACE sees 30 luxurious business jets open to visitors at the landing field of Hongqiao Airport from March 27 to 29. And it has attracted over 150 international enterprises in business aviation, including Boeing, Airbus, Bombardier, Cessna and Dassault.

Dassault is eyeing robust sales growth this year in China, which has topped the global sales of its Falcon series of business aircraft, said an official with the French manufacturer.

The company predicts it will have sold 25 of its Falcon family business aircraft to China by the end of 2012, which would triple their current number in the country, according to Frank W. Youngkin, Dassault Falcon senior vice president of customer service.

Highlighting the Chinese market, the aviation giant has also launched a new service department in Shanghai, the leader of China's aviation industry, with the aim of building a professional team of technicians.

China is now "the most active aviation market with robust growth" in the eyes of global manufacturers, and business aviation is the real breakthrough, said Li He, sales director of King Air products with Avion Pacific Limited.

The trend is driven by the increasing number of super-rich as well as commercial and government use, said Li, adding that in 2011, Avion Pacific sold 13 business aircraft in China, with prices ranging from 3.9 million to 23 million U.S. dollars.

Set apart from scheduled flights, business aviation concerns the high-end service of civil flights, satisfying individual and business demands for flexible, convenient and fast travel.

In 2008, China registered only 32 business aircraft. In 2011, the number reached 109 and the country saw 13,400 registered departures and arrivals of business flights last year, according to Xia Xinghua, vice head of the Civil Aviation Administration of China.

It is anticipated that China's business aviation will increase by 10 to 15 percent in 2012.

"The potential in China and throughout Asia has broken through and is clearly visible to all," said Ed Bolen, president and CEO of the U.S. National Business Aviation Association.

"Still in its infancy, China's business aviation will now have the fastest growth in the region for many years to come. It has possibilities to leap forward by adopting the most advanced technologies and services worldwide and finding its own development mode."

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Sino-US cooperation in the aviation industry could be the best way to bring more manufacturing jobs back to the United States and provide the Chinese market with better aviation services.

That's the hope of hundreds of US aviation industry insiders, who are in Shanghai for this week's Asian Business Aviation Conference and Exhibition, or ABACE.

"At the onset, the demand in China favored larger jets and rotorcraft, but our manufacturers report that they are starting to see demand pick up for medium and small jets, as well as many training airplanes," Caroline Daniels, chairman of the General Aviation Manufacturers Association, said in Washington.

She will participate in the Shanghai event and subsequently travel to Beijing.

GAMA is an international trade association representing more than 70 of the world's leading manufacturers of general aviation airplanes and rotorcraft, engines, avionics, components and related services.

"In China, the market is growing fast and many of our manufacturers are supporting the demand by placing more and more resources in this region to serve their customer base - from sales offices to service centers to parts depots," said Daniels.

According to GAMA data, US manufacturers generated $4.3 billion in new airplane export revenue in 2011, and exports accounted for more than 50 percent of total US airplane billings.

It also said 13.5 percent of business jets delivered went to the Asia-Pacific region in 2011, which is now the third-strongest market. The proportion was triple the level of just five years earlier.

There are now 203 business jets in China, GAMA said.

According to the US Aircraft Owners and Pilots Association, general aviation generates more than 1 percent of US GDP, accounting for 1.3 million jobs in professional services and manufacturing.

Daniels said she was looking forward to meeting local sales agents and learning more about the current state of the market.

"In particular, I am interested in the development of the infrastructure essential to maintain the airworthiness of the aircraft," Daniels said.

"My current understanding is there is considerable work to be done in China to develop this complex infrastructure, without which safe and reliable aircraft operations cannot occur," she added.

Daniels is not the only US aviation industry insider who is eager to find more Chinese customers or cooperation partners through ABACE, at a time of malaise for the global aviation market.

According to GAMA, in 2011, market distribution increased only in the Asia-Pacific region and North America, while billings fell in Europe, Latin America, the Middle East and Africa.

Though Lycoming Engines has not seen a large increase in trade with China so far, Michael Kraft, senior vice-president and general manager, told China Daily he "definitely sees that China is on a strong path to creating a significant general aviation market".

He added: "As the pilot population increases and small aircraft operations and ownership expand beyond flight schools, we will see our customer base shift to the broader population."

He said Lycoming engines power the majority of the fixed-wing aircraft training fleet in China, and flight schools will remain the company's largest group of potential customers in China for the immediate future.

The event in Shanghai won't be the first time for Kraft to seek cooperation opportunities with China. His company has also been regularly involved in aviation events in China, such as the 2011 China International General Aviation Convention in Xi'an and the 2010 Zhuhai Air Show.

"It took the United States many years to develop its general aviation infrastructure and industry. China has done an excellent job so far of implementing best practices from around the aviation world and this will help establish its aviation footprint much more quickly than the US and European markets developed 60 to 70 years ago," Kraft said.

ABACE, which ends on Thursday, is jointly sponsored by the National Business Aviation Association and the Asian Business Aviation Association.

Aviation International News Managing Director Wilson S. Leach said that many US manufacturers are shifting attention from the European market to China, and their China operations have become bigger to meet rising demand.

"I don't know of a single company in business aviation that did not experience major corrections in late 2008, all of 2009, and to a certain degree, 2010 and 2011," he said.

He noted that business jet deliveries declined from an all-time high in 2008 of 1,313 units to 870 units in 2009, 763 units in 2010 and an estimated trough of 650 units this year.

"Our industry continues to look for business outside the US, and with impressive results. Depending on the manufacturer, as much as two-thirds to three-quarters of current aircraft sales are being made outside of North America, with particularly strong demand coming from China," he said.

China is the biggest buyer of US-made Boeing Co aircraft, with a total of 820 serving Chinese airlines, or 49 percent of the total planes in service.

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China's Hainan Airlines was re-awarded SKYTRAX five-star certification on Wednesday, the highest recognition of the global business aviation industry for an airline's operational performance. The award is expected to help Hainan Airlines, China's fourth-largest carrier, to expand global business and encourage more Chinese airlines to improve their services and operation to meet the international standard, said Wang Yingming, chairman of Hainan Airlines...

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China’s AC313 helicopter receives type certificate

2012-03-29 Sourceeople's Daily Online

China’s AC313 large civilian helicopter recently received a type certificate from the Civil Aviation Administration of China.

It becomes the world’s first civilian helicopter with an A-category airworthiness certificate to fly in high-altitude regions of over 4,500 meters above the sea level.

AC313 helicopter is developed by the Helicopter Research and Development Institute under Aviation Industry Corporation of China (AVIC) and manufactured by the AVIC’s Changhe Aircraft Industries Corporation.

The AC313, Asia’s largest helicopter, will enter the market in August. The successful development and production of the AC313 marks rapid progress in China’s civilian helicopter technology.

There are more than 23,000 civilian helicopters worldwide, with as few as about 200 ones in China.

In order to improve the situation, the AVIC’s Helicopter Research and Development Institute and Changhe Aircraft Industries Corporation have made great efforts to master core technologies for civilian helicopters, and independently developed and manufactured the unique AC-series civilian helicopters.