Recent Developments in the Chinese

Aviation Industry

Dave Deng
Sirius Consulting (Shanghai) Co. Ltd.

Dr. Andreas Szesny

SEN-Consult (Qingdao) Co. Ltd.
Qingdao German Service Center for SME
 Recent Developments in the Chinese Aviation Industry

AVIC
✈ Market Outlook

✈ Recent AVIC Development

✈ Recent COMAC Development

Content
✈ Locations and Projects

✈ Upcoming Events
 AVIC Market Outlook

AVIC
✈ Market Outlook AVIC 2008 -
2027:
✈ Annual Growth of Aviation
Sector about 13 %
✈ Estimated need of more
than 2800 commercial
aircraft in the next 20 years
✈ Increasing demand for
Helicopters
✈ Development of Carrier
Airplane

New Era
✈ Development of General
Aviation Industry. Estimated
need of 5000 general
airplanes in the next 10
years
Forecast on Rate of Passenger Volume (RPK)
 Forecast on Demand of
Passenger Aircraft of Chinese Airlines I
 Forecast on Demand of
Passenger Aircraft of Chinese Airlines II
 Aviation Industry of China – Current Structure

AVIC
Ministry of
Industry and Information

AVIC Group COMAC

Structure
Shanghai Design & Aircraft
172 132 112 320 Hundreds Aircraft Research Service
(Xi’an) (Chengdu) (Shenyang) (Hongdu) of Others Mfg. Co. Institute Co.
 Brief Introduction of AVIC

AVIC
✈ Large national industrial corporation
✈ Under direct leadership of the State Council
✈ Subsidiaries: Near 200 enterprises
36 research institutes
6 universities and college
✈ Employees: ca. 400,000
✈ Developing and manufacturing:

Introduction
Military aircraft
Civil and general aircraft
Aeroengine and airborne equipment
Missiles
Research capabilities
 Milestones – AVIC Industrial Group
✈AVIC Industrial Group becomes
partner in Airbus Tianjin JV
✈ signs strategic partnership with
City of Shanghai for commercial
aircraft development
✈ sets up helicopter
manufacturing base in Tianjin
✈ sets up manufacturing center
for composites parts in Harbin
AVIC
✈ In November 2008, AVIC I and II
were merged as AVIC Industrial
Group:
- developing a homegrown large
military carrier
- an air-freighter with a take-off
weight of more than 100 tons
✈ Acquisition of FACC (Austria) in
2009 by AVIC subsidiary XAC
AVIC
 Milestones – COMAC

AVIC
✈ Commercial Aircraft Corporation of China
was officially set up on1 April 2008
✈ Total registered capital: RMB19 billion

✈ Under the new Ministry of Industry and

Information

✈ cfm (leap-x) choosen as C919 engine

New Era
 COMAC Projects

AVIC
✈ Models:

- ARJ 21: entering test flight

stage since 2009,
maiden flight of No.104
aircraft on April 13th

- C 919: entering preliminary

design stage in 2010

New Era
target maiden flight in
2014

- C 929: long term vision

 COMAC Projects

AVIC
✈ Final assembly in Shanghai

Large Commercial Jet

✈ Cockpit, fuselage and wing sections in other cities
like Xi’an, Hongdu and Chengdu, etc.

✈ Under strong time pressure

✈ Preliminary budget for initial design

and development of C919:
RMB50-60 billion
 COMAC Top Management

AVIC
✈ Company Chairman, Mr. Zhang Qingwei,
former minister of Science, Technology and Industry of National Defense
(STINA)

✈ Company President Mr. Jin Zhuanglong

former vice minister of STINA
✈ First Vice President, Mr. Shi Jianzhong
former Vice GM of AVIC II
✈ Vice President, Mr. Wu Guanghui
former President of Xi’an Aircraft Research Institute

New Era
✈ Vice President, Mr. Luo Ronghuai
former GM of Shanghai Commercial Aircraft Co.
✈ CFO, Mr. Tian Min
former President of NAMC
 Important Manufacturing Locations and
Related Projects

• Shanghai: ARJ21, C919, C929

• Xian: Carrier, MA60, supplier to COMAC, Airbus

• Chengdu: Supplier to COMAC, Boeing

• Shenyang: Supplier to COMAC, Bombardier

• Harbin: Supplier to COMAC, Airbus, JV Embraer

• Nanchang: Supplier to COMAC

• Hanzhong: Supplier to Carrier

• Tianjin: JV Airbus, Avicopter

 Locations

AVIC
✈ Main A/C Mfg Factories:
✈ Xian
✈ Shenyang
✈ Chengdu

✈ Harbin
✈ Nanchang
✈ Jingdezhen (Changhe)
✈ Hanzhong
✈ Guizhou

✈ Shanghai

AVIC
✈ Tianjin
 Shanghai

• Headquarters COMAC, Shanghai Aircraft Manufacturing Factory

• New factory for Final Assembly Line in Pudong

• Part manufacturing for C919

 Xi’an
• Headquarter of Xi’an Aircraft (XAC)
• Wings for A320, ARJ21, C919 and Carrier
• FAL for Carrier
• Fuselage for Carrier Airplane
• MA60
• Airbus procurement projects
 Chengdu

• Headquarter of Chengdu Aircraft (CAC)

• Cockpit for ARJ21, C919 and Carrier
• FAL for Chinese Fighter Aircraft
• Airbus and Boeing procurement projects
 Nanchang

• Headquarter of Hongdu Aircraft

• Fuselage for C919 Airplane
• Setting up new Factory (green field) in newly designated Aviation
Industry Zone

• Looking for Airbus and Boeing procurement projects

 Shenyang

• Headquarter of Shenyang Aircraft (SAC)

• Rear for C919 Airplane

• Fuselage parts for Bombardier C Series

• Airbus and Boeing procurement projects

 Harbin

• Headquarter of Harbin Aircraft (HAC)

• Composite parts for C919
• Composite project together with Airbus
 Shaanxi (Hanzhong)

• Headquarter of Shaanxi Aircraft

• Fuselage parts for Carrier Airplane
 Tianjin

AVIC
✈ Tianjin: Airbus, XAC (Wings),
AVIC Helicopter Production Base

• A320 final assembly Line

• 4 aircraft/month
• 44 aircraft/year
• Located next to Tianjin airport

Industrial Zone
 Expected Modes of Cooperation

AVIC
✈ Manufacturing Joint Venture

International Cooperation
(Airbus, Avicopter, Embraer…)

✈ Subcontracting (GE, Rockwell,

Honeywell, Liebherr Aerospace,
…)
✈ Strategic Partnership (Risk
sharing, Joint Development)
 Upcoming Event: Zhuhai Airshow

AVIC
✈ Zhuhai Airshow 2010: endorsed
by China Central Government

Nov 16 - 21

Event
Aviation Industry of China

AVIC
Thank
Thank you
you for
for
your
your attention!
attention!
 Contact

AVIC
Dave
DaveDeng
Deng
Shanghai
Shanghai Sirus ConsultingLtd.
Sirus Consulting Ltd.
E-mail: dave.deng@live.cn
E-mail: dave.deng@live.cn
Mobile:(86)
Mobile:(86)13901682513
13901682513
Dr.
Dr.Andreas
AndreasSzesny
Szesny
Qingdao
Qingdao SEN-ConsultLtd.
SEN-Consult Ltd.
Qingdao
Qingdao German Service Centerfor
German Service Center forSME
SME
E-mail: szesny@qgsc.com
E-mail: szesny@qgsc.com
Mobile:
Mobile:(86)
(86)13869880950
13869880950