Airbus and China Aviation Supplies Import and Export Group Corp (CASGC) yesterday announced the renewal of their training and support joint venture contract for two more decades.

The joint venture, or CASGC/Airbus Training and Support Centre, will manage Airbus' satellite warehouse that is scheduled to open in Shanghai next month.

Airbus will invest US$25 million in the joint venture in which both sides hold equal shares. The European aircraft manufacturer is also considering installing one A380 full flight simulator in the centre at the end of next year. China's first A380 will be delivered to China Southern Airlines at the end of 2007.

"The extension of the contract demonstrates our strong confidence in the Chinese aviation market and our commitment to the healthy growth of this market," said Laurence Barron, Airbus China president.

"Most joint ventures in my experience are not renewed. In this case we are not only extending our co-operation with CASGC, on a 50-50 basis, but are doubling the contract period. That is proof of this very successful partnership," Barron said.

The partnership's existing centre, located near Beijing Capital International Airport, is the first of its kind that combines training and customer support facilities in China. Airbus has invested US$80 million in it.

The 8,200-square-metre training centre is currently equipped with two full flight simulators, one for the single-aisle A320 family and the other for the long range A330/A340. The support centre has a floor space of 5,000 square meters and stocks aircraft spare parts worth a total of US$22 million.

Beijing is also home to the support centres of the Chicago-based Boeing, Canadian Bombardier Aerospace and Brazilian Embraer. But Boeing's training centre is in Kunming, Southwest China's Yunnan Province; Bombardier in Qingdao, Shandong Province; and Embraer in Zhuhai, Guangdong Province.

Airbus will open a satellite warehouse near Shanghai Pudong International Airport next month. The warehouse will store large parts for the A300/310 widebody airliners and the A330/340 twin aisle aircraft.

"The opening of the satellite warehouse in Shanghai will be important for the future development of our joint venture," said Li Hai, CASGC president.

"China Eastern Airlines has the largest fleet of Airbus widebody aircraft in China. Shanghai is also a very important international aviation gateway that serves a growing number of international airlines. The closer we are to the customers, the better service we can provide," Li said.

Airbus plans to deliver 80 aircraft to China this year, a rise of 20 percent year-on-year. Boeing said two weeks ago that it would deliver 64 aircraft to Chinese airlines this year, a year-on-year increase of 23 per cent.

By the end of March, 264 Airbus aircraft were put into service on the Chinese mainland, accounting for 32 per cent of the market

CASGC's business covers the import and export, leasing, maintenance and consignment of aircraft, engines, aviation parts and specialty vehicles. Since 1980, it has imported over 800 aircraft for Chinese airlines.

(China Daily April 29, 2006)