Market Intelligence: -Airline Aircraft Orders

Airbus and China Aviation Industry Sign Next Phase in Partnership Including GTA for Purchase of 160 Aircraft

During a French state visit to China, Airbus signed new cooperation agreements with China Aviation industry partners.

Witnessed by Chinese President Xi Jinping and French President Emmanuel Macron, Airbus CEO, Guillaume Faury signed with the Tianjin Free Trade Zone Investment Company Ltd., and Aviation Industry Corporation of China Ltd., an agreement to expand A320 Family final assembly capacity with a second line at its Tianjin site. The agreement will contribute to Airbus’ overall rate objective of 75 aircraft per month in 2026 throughout its global production network.

Currently, Airbus has four A320 Family final assembly sites worldwide: Hamburg (Germany), Toulouse (France), Mobile (USA) and Tianjin (China). The Tianjin Final Assembly Line (FAL Asia) started operation in 2008 and has assembled over 600 A320 Family aircraft to date. In March 2023 the first A321neo aircraft was delivered from the line, marking a new era of enhanced A320 Family production versatility.

In addition, Airbus also signed General Terms of Agreement (GTA) with the China Aviation Supplies Holding Company (CAS) covering the purchase of 160 Airbus commercial aircraft. The GTA comprises earlier announcements for 150 A320 Family aircraft and for 10 A350-900 widebody aircraft orders, reflecting the strong demand in all market segments by Chinese carriers.

Over the next 20 years, China’s air traffic is forecast to grow at 5.3% annually, significantly faster than the world average of 3.6%. This will lead to a demand for 8,420 passenger and freighter aircraft between now and 2041, representing more than 20 percent of the world’s total demand for around 39,500 new aircraft in the next 20 years.

In line with its sustainability strategy, Airbus and the China National Aviation Fuel Group (CNAF) also signed a Memorandum of Understanding (MoU) to intensify Chinese-European cooperation on the production, competitive application and common standards formulation for Sustainable Aviation Fuels (SAF). Earlier in September 2022, Airbus and CNAF contracted to support commercial and delivery flights in China to be operated with SAF. By the end of March, 17 delivery flights and a first commercial flight were facilitated by the two partners. This new cooperation agreement aims at optimising the SAF supply chain by diversifying the sources and enhancing SAF production towards the ambition of using 10 percent SAF by 2030.

“We are honoured to continue our long-standing cooperation by supporting China’s civil aviation growth with our leading families of aircraft. It underpins the positive recovery momentum and prosperous outlook for the Chinese aviation market and the desire to grow sustainably with Airbus’ latest generation, eco-efficient aircraft,” said Airbus CEO Guillaume Faury. “Airbus values its partnership with the Chinese aviation stakeholders and we feel privileged to remain a partner of choice in shaping the future of civil aviation in China.”

Airbus entered the Chinese market nearly 40 years ago, in 1985, when an A310 was first delivered to China Eastern Airlines. By the end of the first quarter 2023, the Airbus in service fleet in China has risen to over 2,100 aircraft, representing more than 50 percent of the market.

Source: Airbus Press Release
Photo  Credit: Airbus

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Regional Aircraft Manufacturer, ATR, Set for Growth in 2023

After three difficult years due to Covid and a complex economic and geopolitical environment, ATR is set for growth in 2023.

In the context of industry-wide supply chain issues, ATR delivered 25 new and 11 pre-owned aircraft in 2022. Nonetheless the global ATR in-service fleet is now close to pre-Covid numbers with 1,200 aircraft flying, and the current backlog stands at a solid 160 aircraft.

Last year saw 150 new routes created with ATR aircraft. As part of its commitment to decarbonisation, ATR performed the first 100% Sustainable Aviation Fuel (SAF) flight in history with a commercial aircraft, and its brand new PW127XT engine was certified and entered into service. At the same time, ATR successfully advanced the development of its aircraft family, completing the first test flight of the ATR 42-600S (Short Take-Off and Landing) and launching a feasibility study for its next generation EVO concept. These achievements showcase the commitment to connectivity, sustainability and innovation that ATR stands for.

ATR Chief Executive Officer, Nathalie Tarnaud Laude, said: “The goal for 2023 is to maintain our position as the leading regional aircraft manufacturer, by targeting at least 40 deliveries, with the ambition to ramp up production to 80 aircraft in the coming years. With their unbeatable economics, latest technologies and unrivalled environmental performance, ATR aircraft are what customers need to operate their routes profitably, despite inflation and energy uncertainty. What drives us is that sustainable regional aviation has the power to improve lives globally, providing vital connections to communities and economies, which translates into Gross Domestic Product increases and employment.”

Now that travel restrictions have been lifted, the company plans to capitalise from the high replacement demand – 1,500 turboprops over the next 20 years – to tap into underserved markets such as the United States, to increase its footprint on the freighter market, and to explore new opportunities, such as corporate, governmental and humanitarian operations.

Source: ATR Aircraft Press Release
Photo Credit: ATR Aircraft (shown as meta image)

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Japan Airlines Announces Firm Order for 21 Boeing B737-8 Jets

Boeing and Japan Airlines (JAL) have finalized an order for 21 super-efficient 737-8 jets.

The versatile 737-8 will position JAL to strengthen its domestic and regional network as passenger traffic continues to return to pre-pandemic levels. JAL intends to begin introducing the airplanes into its fleet from 2026.

“We are delighted to select the Boeing 737-8, a member of the very latest 737 MAX family, to replace our Boeing 737-800s, which make up the largest proportion of the JAL Group’s fleet,” said Yuji Akasaka, president of Japan Airlines. “We look forward to carrying our passengers in the utmost safety and comfort and to moving closer to our 2050 carbon-neutral goals, thanks to a combination of these super-efficient aircraft, operational innovations and new fuel-saving technologies.”

The 737 MAX will provide JAL with greater range and fuel efficiency, reducing both fuel use and carbon emissions by 15% compared to the airplanes the airline is replacing. In addition, the 737 MAX is a quieter airplane, creating a significantly smaller noise footprint than the airplanes it replaces.

“The integration of the new 737 MAX will provide JAL with greater efficiency across its short-haul network, as the airline continues to upgrade its world-class fleet,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “Partnering with JAL to introduce 737-8s into its operations is the latest milestone in our longstanding relationship.”

The 737 MAX family has the latest CFM International LEAP-1B engines, advanced technology winglets and other aerodynamic enhancements to improve performance. More than 50 airlines globally are operating over 900 737 MAX airplanes, which have made over 1.4 million revenue flights totaling more than 3.5 million flight hours since late 2020.

About Japan Airlines Group

Japan Airlines (JAL) was founded in 1951 and became the first international airline in Japan. A member of the oneworld® Alliance, the airline now reaches 411 airports in 60 countries and regions together with its codeshare partners with a modern fleet of 241 aircraft. JAL Mileage Bank (JMB), the airline’s loyalty program, is one of the largest mileage programs in Asia. Awarded as one of the most punctual major international airlines and a certified 5-Star Airline by Skytrax and a “World Class” airline by APEX, JAL is committed to providing customers with the highest levels of flight safety and quality in every aspect of its service, and to becoming one of the most preferred airlines in the world.

About Boeing

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. 

Source: Boeing Press Release
Photo Credit: Boeing (shown as meta image)

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