12 Nov 2018

China Aviation Industry Newsletter 12 November

AIM Altitude Signs Memorandum of Understanding with China Southern Airlines AIM Altitude signed a Memorandum of Understanding (MOU) with China Southern Airlines. The MOU marks the award of the airline’s latest 737 MAX Galley programme to AIM Altitude, who have been a major galley supplier to China Southern for a number of years. AIM Altitude’s next-generation galleys feature new light-weight and robust materials, with a class leading, crew friendly, aesthetically-pleasing design. Each of China Southern’s 737 MAX aircraft will be fitted with a full suite of galley systems, with deliveries commencing in July 2019 through to December 2020. ATR sees demand for over 1,000 new turboprops in China over the next 20 years valued at over US$ 25.6 Billion ATR 7 November published its new Chinese Market Forecast at the Zhuhai Airshow where it estimates a total market for 1,100 turboprop aircraft in the next 20 years. These aircraft will be required to serve China’s rapidly developing Regional Aviation and General Aviation segments. ATR foresees that in 2037 87% of the Regional and General Aviation activity will come from newly created routes, calculated at a total of close to 2,200. ATR’s calculations predict that Regional Aviation (up to 100 seats) will be eight times bigger in 2037 than it is today. The necessity for some 300 turboprops (70 50-seat and 230 70-seat) is estimated to connect 200 regional aviation airports, creating nearly 700 new routes in this regional segment. China’s Largest Airline, China Southern Airlines, Signs FlightSense On-Site Support Agreement with UTC Aerospace Systems UTC Aerospace Systems announced 6 November that China Southern Airlines signed a 10-year FlightSense On-Site Support (OSS) agreement. This agreement will simplify the airline’s supply chain operations by applying cutting edge technology and inventory support to shorten the airline’s repair times. This new agreement builds upon a more than 10-year relationship between the two companies and reinforces UTC Aerospace Systems’ commitment to the region. China will need more than 7,400 new aircraft in the next 20 years China will need over 7,400 new passenger aircraft and freighters from 2018 to 2037, with a total market value of US $1,060 billion, according to Airbus’ latest China Market Forecast. It represents more than 19 percent of the world total demand for over 37,400 new aircraft in the next 20 years. According to Airbus’ 2018-2037 Global Market Forecast, new deliveries of passenger and freight aircraft for China will be more than 7,400 over the next 20 years. In the Small segment typically covering the space where most of today’s single-aisle aircraft compete, there is a requirement for 6,180 new aircraft; 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 870 passenger and freight aircraft; For additional capacity and range flexibility, in the Large segment where most A350s are present today, there is a need for 240 aircraft. In the Extra-Large segment, typically reflecting high capacity and long range missions by the largest aircraft types including the A350-1000 and the A380, Airbus forecasts demand for 130 aircraft. CR929 Mockup Unveiled at Airshow China 2018 Russia’s UAC and China’s Comac unveiled a mockup of the forward cabin section in their jointly developed CR929 widebody jetliner just before the official opening of the 12th biannual China Airshow in Zhuhai. Comac general director Zhao Yue Rang described the CR929 as “a strategically important project” and a means of strengthening the relationship between China and Russia. Last year, the sides established the China-Russia Commercial Aircraft International Corporation, or CRAIC, a joint venture to manage the project. CRAIC director and president Guo Bo Zhi reminded attendees that the aircraft received the designation CR929 in September 2017, when the founders instructed the joint venture to develop a family of aircraft consisting of a baseline CR929-600, a CR929-500 shrink variant, and a CR929-700 stretch version. Apart from passenger carrying roles, the airplanes would also serve as a freighter, business, private, and special-purpose variants. Hainan Airlines, GE sign two MOUs on purchase of engines at the first China International Import Expo Hainan Airlines signed two memorandums of understanding (MOUs) with General Electric (GE) collectively worth some US$79 million, to buy two types of engines from the American multinational conglomerate. CIIE is the world's first national-level exhibition focused chiefly on imports. GE is the first engine producer to cooperate with Hainan Airlines. Over the past 25 years, we have been involved in several comprehensive strategic collaborations with the Chinese airline," stated GE vice president and GE Aviation's president for Greater China Weiming Xiang. "We believe that the MOUs signed with Hainan Airlines today are expected to further strengthen the already longstanding cooperation between both companies." Lufthansa Technik Shenzhen approved service provider for COMAC COMAC (Commercial Aircraft Corporation of China) has officially approved Lufthansa Technik Shenzhen as their first MRO service provider in China for ARJ21 engine nacelles and components. Prior to the approval, the Lufthansa Technik subsidiary had successfully performed an on-site audit in December 2017. Located in the Chinese province of Guangdong, Lufthansa Technik Shenzhen, had added the COMAC ARJ21 regional jet to its service portfolio in 2016. Since then, the company has carried out modifications to several shipsets of the regional jet's engine fan cowls and thrust reversers Lufthansa Technical Training and SAMC signed a Memorandum of Understanding at Airshow China Shanghai Aircraft Manufacturing Company (SAMC) and Lufthansa Technical Training, a wholly owned subsidiary of Lufthansa Technik AG, signed a Memorandum of Understanding (MoU) at Airshow China in Zhuhai. The MoU intensifies a closer strategic partnership between the two companies in on-the-job training of skilled technicians. SAMC is a subsidiary of Commercial Aircraft Corporation of China (COMAC) and is responsible for the production of ARJ21, C919 and CR929. It provides four major businesses, including final assembly, key components and parts fabrication, MRO and retrofit and composite material. MTU Maintenance signs multiple contracts at Zhuhai Airshow MTU Maintenance Zhuhai signed a number of agreements at the Zhuhai Airshow in China this morning. The first was a five-year agreement with longstanding customer Hainan Airlines for V2500 MRO services. Hainan Airlines and MTU Maintenance Zhuhai have worked together on CFM56 engines for well over ten years and are now expanding their cooperation to include the V2500 engines powering the airline’s A320 fleet. Pratt & Whitney Shanghai Engine Center Receives CAAC Certification for V2500® Engine Overhaul The Shanghai Pratt & Whitney Aircraft Engine Maintenance Company (Shanghai Engine Center) has received certification from the Civil Aviation Administration of China (CAAC) to add maintenance, repair and overhaul (MRO) capability for the V2500 engine to its aftermarket portfolio. Shanghai Engine Center is a joint venture between Pratt & Whitney and China Eastern Airlines Corporation Limited. Pratt & Whitney is a division of United Technologies Corp. In August of this year, the facility completed its first V2500 engine overhaul, and expects to increase its output.

UAC Head Details CR929 Market Outlook and Timetable

Russia’s UAC sees Russia and China as the main markets for the two countries’ jointly developed CR929 widebody, anchoring a global market for about 8,000 airplanes worth $2.4 trillion over the next 20 years, according to an updated edition of the company’s market forecast presented at Airshow China 2018 in Zhuhai.  Offering a range of 6,500 nautical miles while carrying 280 passengers, the CR929 would compete directly with the Airbus A350 and Boeing 787. “Out of a thousand aircraft, our product would generate at least half of sales,” said Slyusar. UAC’s estimates call for China to take 250 and Russia 50. Acumen Aviation © 12 November 2018 All Rights Reserved.