the benefits for business of forging closer china eu trade and investment relations,mr laurence...
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Mr Laurence Barron, Chairman, Airbus Group China speaks at Asia Matters' Sixth EU Asia Top Economist Round Table in Beijing on 17 November 2014.TRANSCRIPT
The Benefits for Business of Forging Closer China/EU Trade and
Investment Relations
Mr Laurence Barron Chairman
Airbus Group China
Sixth EU Asia Top Economist Round Table EU China Economic and Finance Forum
Beijing, 17 November 2014
17th November 2014
THE BENEFITS FORBUSINESS OF FORGING
CLOSER CHINA/EU TRADE AND
INVESTMENT RELATIONS
AIRBUS IN CHINA
© AIRBUS China LTD. All rights reserved. Confidential and proprietary document.
Airbus & JVs in China
Airbus China
20 Field service locations in 10 cities
Final Assembly Line
Industrial co-operation manufacturing sites
Shanghai
Hangzhou
Xi’an
Chengdu
Shenzhen
Guangzhou
Shenyang
Harbin
Haikou
Qingdao
© AIRBUS China LTD. All rights reserved. Confidential and proprietary document.
Airbus & JVs in China
Hua-Ou Aviation Training Centre and Support Centre –Airbus 50%
Airbus(China) Enterprise Management and Services Co.,Ltd. – Airbus 100%
Since 1994
–Strengthen and expand presence
–Training Centre: over 25,000 trainees
–Support Centre: 32,000 parts, EADS supplier avionics
repair shop, 37 aviation companies
Airbus Beijing Engineering Centre (ABEC) – Airbus 70%
– A350XWB/A380/SA engineering, customer services
Since 1997
Since 2005
Since 1994
© AIRBUS China LTD. All rights reserved. Confidential and proprietary document.
Airbus & JVs in China
Final Assembly Line-Tianjin – Airbus 51%
–1st flight 18th, May 2009; 1st delivery 23rd June, 2009
–Becoming Airbus FAL Centre in Aisa
Airbus Tianjin Delivery Centre (ATDC) – Airbus 100%
–47 aircraft scheduled deliveries in 2014
–Delivered more than190 aircraft
–Becoming Airbus Delivery Centre in Aisa
Composite Manufacturing Centre in Harbin – Airbus 25%
–A320 composite rudder, elevator and HTP spars
Since 2008
Since 2009
Since 2008
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Industrial cooperation highlight – A320 Family
• Wing supplied to FAL – C are made by AVIC in
China
• FAL- C: First Airbus final assembly line outside Europe
• Production rate: 4 aircraft per month
• Final assembly of A320neo from 2017 onward
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Industrial cooperation highlight - A350XWB
Design
Rudder & Elevators
Spoilers & Droop panel
By ABEC
Harbin Manufacturing Centre
Manufacturing
AVIC, Chengdu
1st delivery of A350XWB Elevator (16th Sept 2013) and
rudder (planned by Dec 2014)
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Increasing industrial turnover of Airbus in China
0
50
100
150
200
250
300
350
400
450
500
550
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015
Industrial Cooperation Value (Million USD)
Yearly Industrial Turnover*
$500M - Target by 2015
* Include: Airbus direct spent in aerostructure & raw materials; Airbus spents on the service from ABEC, FAL-C and ATDC
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Year of 2014 – New Era of Airbus cooperation in China
Framework agreement with AVIC to enhance the cooperation for HMC
–Increase Airbus share from 20% to 25%
–Resolving technical & operational challenges
–Ensure effective management for production ramp-up
MoU with COMAC for non-competitive
cooperation– ATM/CNS roadmap harmonization
– PBN regulation
– GMF methods
– Customer finance methods
Extension of A320 FAL cooperation to 2025 and
becoming
Airbus FAL & Delivery Centre in Asia
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
The 200th FAL-C delivery will happen in Dec 2014
First delivery
Jun. 2009 100th delivery
Sept. 2012
150th delivery
Nov. 2013
6
2435 37 40
5
2
16
2009 2010 2011 2012 2013
FAL-C deliveries
A320 A319
Scheduled 200th delivery
Dec 2014
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
1263 employees working for Airbus and JVs in China
1994Airbus
2005ABEC
1997HUA-OU
2009HMC
2008FAL-C, ATDC
1263 employees
Airbus China Hua-ou
ABECFAL-C ATDCHMC XAC ATL
Airbus China 234
HUA-OU 87
ATDC 79
ABEC 120 FAL-C 400
HMC 327
XAC 4
ATL 3
Break down:
Data as at end of September 2014
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
0
200
400
600
800
1000
1200
198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014Q1
A380 A330/A340 A320 Family A300Logistics Centre opened
1069 by 2014Q1
First entry
into China
Hua-Ou Aviation
Centre opened
Airbus fleet is doubling every 4 years in the new century
Airbus China
office opened
A(B)EC
established
FAL-C/ATDC
first delivery
HMC opened
1994
1997
2005
2009
2011
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
50% market share
0%
20%
40%
60%
80%
100%Boeing
91%
Airbus9%
In-service aircraft in China
Airbus50%
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
China is catching up
116
141
260
181
197
824
229
0 200 400 600 800 1000 1200
Turkey
UAE
France
Russia
Gemany
UK
Mainland China
USA
2005 2006-2014Q3 net increaseAirbus in-service fleet by 2014Q3
*In terms of in-service fleet, by end of Q3 2014
© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Airbus operators / customers
Leasing
companiesFull service carriers Airbus operators
/customers
16 FSC
2 Lessor
2 LCC
Low cost carriers
Airbus Helicopters in China
1980
First Sale
in ChinaProduction License
for Dolphin AS365
EC120 Cooperation
with CATIC & STAE
EC175/AC352
Cooperation
with AVICOPTER
Creation of AH
China in Shanghai
Creation of AH China
in Hong Kong
Acquisition of 21%
of CGAMEC’s sharesOpening of AH
China offices
in Harbin,
Chengdu and
Wuhan
Opening of AH
Rep Office in Beijing
Opening of
HK CSC
Opening of HK
Logistic platform
Inauguration of EC225
FFS in Beijing
Airbus Helicopters in China History
1967 1992 20042002 2005 2006 20082007 2009 2011 2012 2014
Signing of
EC175/AC352
1,000 Production
Contract
Airbus Helicopters in China
AW10%
38AIRBUS Helicopters
41%
AVICOPTER5%
RUSSIAN7%
2SIKORSKY13%
OTHERS6%
2013 Results
Deliveries: 23 a/c
Bookings: 15 a/c
Fleet Share in Service
End of 2013AH China Headquarter
Branch and Customer Liaison offices
MRO Center
Customer Support Center and Logistic Hub
Cooperation
330 helicopters in China
Civil + Para-public Turbine
123 Airbus Helicopters
aircrafts
Commer
cial &
Private
Police
, SAR,
EMS*
O&G
67 a/c 25 a/c 31 a/c
37% 40% 55%
* First dedicated EMS helicopter in
China ordered by Beijing 999 center
in 2014 (1xEC135)
EASA certification in January 2014
Historic milestone in March 2014: production contract of 1000 helicopters
FAA certification expected mid-2014
Initial deliveries in Q2-2014
Ramp-up in 2015 to 2016, full production in 2017
Cooperation with Chinese Industry
EC 120
Z-9
EC 175 / AC 352
• Oil & Gas:
With 1 EC155B1 and 4 additional EC225 delivered to China in 2013, Airbus
Helicopters have the biggest fleet with more than 30 aircrafts in O&G segment.
• Police:
Two latest police aviation units (Wuhan and Dalian) have chosen Airbus
Helicopters EC135 and EC155B1 (delivered in 2013) for their operations.
• General aviation:
AS350B3 remains the single malt reference in Chinese general aviation
community. First EC130T2 in China was delivered earlier this year.
• EMS:
First helicopter to be fully equipped and dedicated to emergency medical
services in China has been ordered by Beijing 999 Center and this EC135
was delivered in October 2014.
Airbus Helicopters in China:
Recent Highlights to Increase Market Share
Questions&
Answers