Planemaker Signs MOU To Allocate Five Percent Of Airframe To China

The large Chinese airliner deal announced Monday by Airbus included a memorandum of understanding (MOU) with the National Development and Reform Commission (NDRC) to formalize Airbus' commitment to allocate five per cent of the A350XWB air frame to the Chinese aviation industry, according to the European planemaker.

The MOU was signed Monday by Chen Deming, Vice Minister of NDRC, and Fabrice Bregier, Chief Operating Officer of Airbus, at the Great Hall of the People in the presence of Chinese President Hu Jintao and visiting French President Nicolas Sarkozy.

According to the MOU -- termed "Strengthening Industrial Cooperation through A350 XWB" -- NDRC and Airbus will cooperate on A350 XWB development and manufacturing work, in order to enhance a closer strategic cooperation relationship between Airbus and the Chinese aviation industry.

Airbus also confirmed its intent to manufacture five per cent of the airframe of the A350 XWB aircraft in China. Airbus will actively involve Chinese enterprises in the A350 XWB project to develop the current cooperation and prepare for further possible cooperation for future programs.

On the same day, Airbus also signed a Heads of Agreement (HOA) with China Aviation Industry Corporation II (AVIC II) to develop a new cooperation model to support the A350 XWB industrialization.

According to the HOA between Airbus and AVIC II, a joint venture manufacturing center is to be established in Harbin by Airbus and Harfei Aviation Industry Company Ltd, a subsidiary of AVIC II, to produce composite material parts and components for Airbus A350 XWB.

The manufacturing center is expected to be established in the first quarter of 2009. The production scale of the manufacturing center shall correspond to the work packages for the A350 XWB allocated to the manufacturing center and may be enlarged based on the future Business Plan.

"NDRC encourages the efforts to further enhance industrial cooperation between the Chinese aviation industry and Airbus. The reinforcement of cooperation between Airbus and the Chinese aviation industry will be beneficial for the development of the industry and for Airbus as well," says Zhang Xiaoqiang, Vice Minister of NDRC.

AVIC II President Zhang Hongbiao added, "AVIC II supports Airbus' cooperation strategy with China's aviation industry. Both sides will be dedicated to a long-term and strategic cooperation relationship and will complement each other with different advantages. We believe that there is a big potential for cooperation."

"We are impressed by the fast and sustained growth of the Chinese aviation industry and are extremely proud to be able to contribute to its development with our state-of-the-art, efficient and environmentally friendly aircraft. We demonstrate once again Airbus' commitment to the long term development of China's aviation industry. For Airbus, China is not only an important market, but also an industrial partner. We are making efforts to further strengthen the already existing cooperation," says Fabrice Bregier.

As ANN reported, China Aviation Supplies Import and Export Group Corporation (CASGC) signed an agreement with Airbus this week for 150 aircraft including 110 A320s and 40 A330s. China Southern Airlines signed a contract with Airbus for 10 A330-200s.

FMI: www.airbus.com