China poised to top aviation industry

AIRBUS    AVIATION

China - Airbus says demand and growth of the Chinese airplane market surpasses other regions, and continues a watchful eye over the thriving aviation market in China.

The world's largest manufacturer of commercial jets predicts Chinese airlines will account for 20% of all Airbus planes delivered in 2010, a 16.5% jump from a decade ago.

Airlines in mainland China will likely order approximately 2,800 planes over the next two decades in the category of planes that carry 100 or more passengers, said Laurence Barron, president of Airbus China.

He predicts China's airline traffic to expand more than 10% annually.

"Not only is it already the world's second-biggest market but it probably has the most potential of any significant market in the world," Barron said in an interview from Beijing according to Bloomberg's BusinessWeek.

The market for single-aisle planes is the most contested because it forms the foundation of many commercial fleets.

The government controlled Commercial Aircraft Corporation of China (Comac) is planning a 168-seat jet, the C919, said to be cheaper operating than the Airbus A320 and Boeing's 737 models due to lower fuel consumption. Comac has plans to see the C919 in service by 2016.

The C919 will be initially targeted at the local market, before challenging Airbus and Boeing for customers overseas.

Airbus said it cannot verify C919's claims of superior fuel efficiency compared to their A320, but will study options to decrease the fuel consumption of its single-aisle plans with different engines this year.

Airbus opened a factory in Tianjin, China last year for final assembly of A320 jets to help sell more planes into the local market, and will continue to do so, said Barron.

Airbus is also watching Canada's Bombardier and its plan to put the 100 to 150-seat CSeries planes into service by 2013.

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