Airbus eyes sustainable expansion with first aircraft life cycle center in China, observes GlobalData

Following the news that Airbus signed a memorandum of understanding (MoU) with Tarmac Aerosave and the city of Chengdu for the development of the first sustainable aircraft ‘lifecycle’ center in Chengdu, China;

Mathew George, Ph.D., Aerospace & Defense Practice Head at GlobalData, a leading data and analytics company, offers his view:

“This MoU is another step by Airbus to drive the commercial aviation industry in China, thus displaying its long-term commitment to the Asia-Pacific (APAC) region and the country. Once Airbus receives the regulatory approvals, the center is likely to start operations by 2023 end, just before Airbus’ 30 years of operations in China.

“Expected to reach US$12bn by 2031, the Chinese market is a promising prospect. GlobalData’s data suggests that while Airbus presently holds the largest market share, it is expected to slip to third behind the Commercial Aircraft Corporation of China and Boeing by 2031.

“By investing in the whole lifecycle management facility available to customers in the country, Airbus provides airlines in the region to have closer, cheaper options of lifecycle management for their Airbus aircraft. It allows Airbus to encourage fleets to move to a younger (Airbus) fleet while providing all the necessary services to assist in transitioning out their older aircraft and being embedded in the customer’s journey with their aircraft.

“Airbus also looks to benefit from the operations of Satair (an Airbus subsidiary) which will be in the same facility allowing Airbus to further support its clients in the region and elsewhere with the used parts and aircraft.

“While other geographies would have hoped that such a large operation would have happened on their soil, this move only cements the growth and size of the Chinese aviation market and provides a greater impetus for its growth with Airbus hoping to play a large role.”

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