Airbus Seeks New Dimension of Win-win With China

Airbus sees the challenging pandemic period as the time "for a new start" in building a sustainable future together with China, a senior executive with Airbus China has told Xinhua in an exclusive interview.

"Airbus and China are adding a new dimension to the win-win future for both sides and a sustainable world by taking care of growth opportunities and opening doors for the next generation," said Michel Tran Van, chief operating officer of Airbus China.

In the interview, he outlined the company's vision for future of the aviation industry and deepened cooperation with China, focusing on innovation and environmental sustainability.

New Dimensions

"Airbus and China share the commitment to building a sustainable future. It will be a new dimension of win-win," said Tran Van.

The COO, who boasts a strong engineering background, drew a chart illustrating the multi-dimensional cooperation between Airbus and China, covering the full life-cycle of the aviation ecosystem.

The vertical "products" axis ranges from single-aisle to wide-body aircraft, representing Airbus' production facilities. The horizontal axis shows various areas of operation covering the whole life-cycle, such as research and design, innovation, engineering, delivery and supply.

It is in this range of operations that the environmental sustainability comes into play. Airbus and the Chinese partners are exploring ways to reduce their environmental footprints, cutting CO2 emissions, both from the aircraft themselves and the whole industrial set up.

Airbus and its Chinese partners are making efforts in fields such as reducing waste and water consumption in production, introducing green electricity and water recycling, and exploring innovative techniques.

"It was a challenging two years, but a very impressive and rewarding experience," said Tran Van with a smile, recalling that he took up the post in early 2020, around the time that COVID-19 hit the news.

Airbus China has experienced impressive momentum on several fronts over the past two years. "We are all very proud of that. There has not been a single disruption of our supply chain in China. It's amazing!"

Almost all Airbus commercial aircraft are supported by aerospace parts made by more than 200 Chinese suppliers, covering their entire life-cycle.

In June, 2021, an Airbus A320 fuselage-equipping project was jointly launched by Airbus and the Aviation Industry Corporation of China (AVIC) in Tianjin, marking another step forward for Airbus's localization and vertical integration in China.

Soon after, in July, a completion-and-delivery center for the Airbus flagship A350 aircraft was launched in Tianjin.

"China is our key market and the hub of our supply chain. It's also an integral part of the global aviation industrial ecosystem, a country with talented people, innovation vitality and good potentials," said Tran Van.

Globally, Airbus has four A320 family assembly facilities. They are in Toulouse, France; Hamburg, Germany; Mobile, United States and Tianjin. Airbus is upgrading its industrial capability at all of its facilities to meet increasing demand for the A321.

Now, only Hamburg and Mobile have the capabilities for A321 delivery. Adaptation work for A321 in Toulouse will be performed in the future. All A320 family assembly line of Airbus will eventually become A321-ready to meet the rising share of this aircraft model in the backlog.

“Lifecycle” Service Centre

European aircraft manufacturer Airbus will set up its first sustainable aircraft life cycle services center in China in Chengdu, Sichuan province, as it eyes business opportunities emerging from China's increasing number of aging aircraft.

Airbus signed a memorandum of understanding with the city government of Chengdu and Tarmac Aerosave for the development of the center. It is also Airbus' first such facility outside of Europe.

With an investment of 6 billion yuan ($945 million), the center is located near Chengdu Shuangliu International Airport and is expected to be put into operation by the end of 2023, subject to relevant regulatory approval.

A formal agreement to establish and frame the industrial cooperation is planned to be signed between the partners in mid-2022.

The center will provide services covering a wide range of activities, including aircraft parking, storage, maintenance, upgrades, conversions, dismantling and recycling for various aircraft types. The 690,000 square meter facility will be able to accommodate 125 aircraft at a time.

"This unique center will support the expansion of Airbus' aviation services while enabling the implementation of China's green industry strategy," said Klaus Roewe, senior vice-president of Airbus customer services.

"Aircraft phaseout in China is forecast to grow exponentially over the next 20 years. Airbus is committed to investing in the region and this one-stop shop will see Airbus well-positioned in the Chinese aircraft 'second life' services market," he said.

In the next two decades, among in-service aircraft in China, the number of aircraft aged more than 12 years will increase by more than 15 percent per year. In the later stages of an aircraft's life cycle, it faces technical and asset management issues, Airbus said.

Tarmac Aerosave, a French aircraft-dismantling provider, which dismantled several retired Airbus A380 before, will bring its expertise in eco-efficient aircraft dismantling to the project.

Located in the same center, Airbus' subsidiary Satair will acquire aging aircraft and then trade and distribute the resulting used parts to complete the full scope of life cycle services.

Airbus said it will continue to deploy its sustainability roadmap for the aviation industry, enabling the increased reuse of aircraft and the recycling of materials and equipment.

"Airbus has been constantly exploring local cooperation since we entered the China market. Next, we will continue to increase our investment efforts in after-sales services," said George Xu, Airbus China CEO.

"The center in Chengdu is expected to drive the development of related sectors, which include the trade of secondhand aircraft, aircraft maintenance, repair, dismantling, and green recycling of aircraft. The recycled use of dismantled parts is foreseen to help carriers lower their operational costs and raise the utilization rates of components," Xu said.

Zou Jianjun, a professor at the Civil Aviation Management Institute of China, said, "With global trade frictions, and the European Union having frozen the ratification process of the Comprehensive Agreement on Investment, Airbus' further investment in China shows its recognition of China's business environment and its confidence in the investment."

Securing the Future

Global aerospace giants are adapting to the changes brought about by the pandemic. According to Tran Van, Airbus is taking this challenging time as an opportunity for a more ambitious restart in cooperation with China.

"In the face of challenges and competition, we can't stand still. It's the right time to secure the future with innovation," he said.

As of the end of June 2021, China Eastern Airlines operated an Airbus fleet of 413 aircraft, including 349 A320 Family aircraft, 55 A330 Family aircraft and nine A350 aircraft.

Today Airbus has around 200 Chinese suppliers. These include a composite manufacturing centre in northeast China's Harbin, as well as engineering, customer support and training centres located in Beijing. 

In Harbin, an innovative technique for detecting flaws in composite materials has been developed in a joint-venture.

The new technique is expected to enhance the quality and production efficiency of composite materials, which are key to the modern aerospace industry. It is a unique approach developed in China.

Airbus also cooperates with Chinese partners in fields such as smart manufacturing, data analysis in engineering and new aerospace materials.

"We aviation people have some fascinating responsibilities -- to leave the next generation the spirit of always being innovative and finding ways to keep people connected in a safer way."