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Enter the Dragon: Craft Resembles the Mcdonnell Douglas MD-95/ Airbus Falcon and Aerospace Products International (API) Have Expanded Boeing 717 Twinjet Airliner (U.S

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Enter the Dragon: Craft Resembles the Mcdonnell Douglas MD-95/ Airbus Falcon and Aerospace Products International (API) Have Expanded Boeing 717 Twinjet Airliner (U.S 2012 PROVES A BANNER YEAR FOR to sell aircraft in China. We want this business, too,” said Wang Yawei. WESTERN FIRMS IN CHINA To date, only one Chinese aircraft would appear to fit that bill: the long-delayed ARJ21. That air- Enter the Dragon: craft resembles the McDonnell Douglas MD-95/ Airbus Falcon and Aerospace Products International (API) have expanded Boeing 717 twinjet airliner (U.S. production of which In August, Airbus delivered the 100th A320 assembled in China their logistics services agreement. API’s Shanghai distribution Chinese aerospace deals concluded in 2006) and will be used primarily for under a joint venture with the Tianjin Free Trade Zone (TJFTZ) and center will provide parts logistics services for all Falcon needs, regional airline service in China, but could easily be Avic, the two parties of the Chinese consortium that hold a 49-percent including AOG events, in China and surrounding markets. API will setting frenetic pace developed into a business jet. It is being made from stake in the Airbus Final Assembly Line China joint venture that was stock spare parts in its warehouse in Shanghai and will provide tooling abandoned by MD in China two decades ago established in 2005. This year Airbus also signed an agreement to import and export services, customs clearance and parts dispatch by Mark Huber after a joint venture to manufacture the aircraft there continue the joint venture beyond its current expiration date in 2016. into China and surrounding countries. Dassault Falcon expects 24 failed to materialize. Falcons to be operating in China by year-end. Between now and 2030, Bombardier component manu- Bell Helicopter Offset Required estimates that China will need 2,300 busi- facturers, from avion- Bell Helicopter signed a memorandum of understanding (MOU) on Embraer ness jets, or roughly 20 percent of the cur- ics to aerostructures to For the most part, OEMs seem unconcerned that June 4 to open an authorized flight training school in China. Bell will In June, Embraer signed a deal to build Legacy 650 executive rent U.S. market. Boeing estimates that engines, have been rushing the flood of aerospace offsets being funneled into partner with Guanchen Aviation, which already manages an established jets for delivery in China at its Harbin Embraer Aircraft Industry Chinese airlines will need an additional to open facilities and fash- China stands to lead to the widespread Chinese coun- Civil Aviation Administration of China-approved flight training school joint venture in Harbin. The joint venture is a partnership between 5,000 aircraft during the same period. ion deals to sell, service, terfeiting and copying that have plagued Western man- in Anyang, China. The new school will be based in Anyang and provide Embraer and Avic’s Harbin Aircraft Industry. It was formed in 2003 to Those are ambitious projections that fabricate and/or assemble ufacturers of everything from handbags to consumer factory-approved initial and recurrent type training for Bell 206L and construct Embraer ERJ 145 regional jets for delivery in China. Today, assume much. Right now, movement their products in China to electronics and even whole automobiles. U.S. Trea- Bell 407 pilots. Over time, the school could expand to offer training in Embraer claims a 76-percent share of the Chinese RJ market. The of private aircraft throughout most of access both cheaper labor sury Secretary Timothy Geithner publicly complained more Bell aircraft types. Bell has a long history in China. Airframes for OEM established its first office in China in 2000. In 2010 it formed China remains tightly controlled and and a wide-open market. According to the time the Chinese compa- last year, “They [the Chinese government] have made Embraer China Aircraft Technical Services to provide logistics, parts bureaucratically cumbersome. Through- the U.S. Commerce Department, China nies involved in these deals the Bell 430 were made by Hafei Aviation in Harbin. out all of China in 2010 there were is now the second-largest U.S. aerospace are, or are affiliated with, China’s state- sales and consulting services regarding technical issues and flight Comac’s ARJ21 is set to complete certification by year-end Boeing operations for its fleet in China. just 1,010 general aviation aircraft, an export market, behind France. run general aviation conglomerate Avic and, if reconfigured as a business jet, would compete in the Boeing is the largest purchaser of Chinese-made aviation parts, estimated 215 of them turbine pow- To date, this year has been particularly and new Latitude jets there. The appetite (Aviation Industry Corporation of same market segment as Bombardier’s Global 5000. Eurocopter ered. Chinese airlines currently operate active, almost stunningly so, for China to plant the flag in China extends beyond China), or its commercial aviation con- on which it spends hundreds of millions of dollars annually. More approximately 800 aircraft, 49 percent of deal-making. Cessna, which already the airframers. Training companies, com- glomerate Comac (Commercial Aircraft than 6,000 Boeing airplanes have parts and assemblies made in In August, Eurocopter signed a deal to build a completion center which are Boeing models. builds its 162 Skycatcher piston single in pletion centers and even aircraft fuelers Corporation of China). For example, China. In March, Boeing and Comac signed an agreement to create for its Ecureuil(AStar)-class helicopters in Tianjin as part of a joint Over the last several years the China, announced that it will assemble are all frequent fliers to China in search when Cessna announced its intention a jointly funded Boeing-Comac Aviation Energy Conservation and venture with the Tianjin Free Trade Zone. Center work could be world’s business jet, helicopter and related Caravan turboprops and the Sovereign of the art of the deal. to assemble Caravans in China, the plan Emissions Reductions Technology Center in Beijing and to exchange expanded to include other Eurocopter types in the future. The Chinese government requires that was built on a joint venture among it, market forecasts. The facility opened in August. Eurocopter currently claims a 40-percent market share in China, any company seeking to enter its mar- Avic’s Caiga (China Aviation Industry with approximately 180 helicopters sold to Chinese operators. The ket provides technology transfer or “off- General Aircraft Co.) unit and the Shiji- Bombardier company created Eurocopter China in 2006 to support its product sets” that pose both reward and inherent azhuang municipal government. Bombardier signed a variety of new agreements with Chinese line there and has bases in Beijing, Shanghai, Shenzhen, Harbin, risk. As the U.S.-China Economic and The U.S. government is officially Cessna will build midsize bizjets such as the Citation entities this year. Bombardier and Avic Leasing signed an MOU Chengdu, Wuhan and Hong Kong. Eurocopter codeveloped its new Sovereign in China as part of a joint venture with Avic. Security Review Commission warned in encouraging these deals. The U.S. Trade in February covering financing of commercial aircraft inside and EC175 medium twin with Avic’s Harbin Aircraft Industry Group. its 2010 report to Congress, “In the near and Development Agency (USTDA) ini- outside China. In March, Bombardier signed a cooperation agreement term, U.S. aviation manufacturing firms tiated the U.S.-China Aviation Coop- with Comac concerning commonalities on Comac’s new C919 and ExecuJet Aviation stand to benefit from increased aviation eration Program in 2004 to expand Bombardier’s CSeries single-aisle jets. This includes cockpit, electrical In August, Switzerland’s ExecuJet Aviation and Tianjin Haite exports to China. However, as China’s policy, technical and commercial coop- system, aluminum lithium alloy standards (fuselage skin) and received Part 145 maintenance approval from the Civil Aviation aviation manufacturing firms improve, eration. At last year’s U.S.-China Avia- customer service standards and assets. In April, Bombardier opened a Administration of China (CAAC) for their MRO joint venture at U.S. aircraft and aviation component tion Summit in Washington, Acting U.S. new office in Shanghai for coordination, marketing, sales and support Tianjin’s Binhai International Airport in northern China. The MRO manufacturing companies will likely face Commerce Secretary Rebecca Blank pro- of its commercial and business aircraft in China and north Asia. More facility supports most Bombardier business jets and is expected to increased competition from these avi- claimed, “Ultimately, our success helping than 80 Bombardier-produced aircraft are currently operating in China. add other types in the near future. ation firms in China’s domestic, third- China meet its aerospace goals will mean country and U.S. markets.” more jobs here at home.” possible systematic stealing of intellectual property Cessna FlightSafety The offsets are usually part of a joint Chinese officials have been fairly (IP) of American companies and have not been very Cessna announced several deals with Avic in March. The two In February, FlightSafety International (FSI) and Gulfstream venture that is typically structured as a transparent about their intentions. At the aggressive to put in place the basic protections.” companies will establish joint ventures in China to develop a Aerospace opened a learning center in Hong Kong in cooperation three-way partnership among the for- Asian Business Aviation Conference & However, during a call
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