SINGAPORE (Mar 4): Airbus is looking at assembling its newest A330neo wide-body jet in China as part of a bid to win orders for the plane in one of the world’s fastest-growing aviation markets, say people with knowledge of the matter.

Airbus may expand its existing plant in Tianjin to accommodate the model, but a decision has not been made with the business case yet to be established, said the people, who asked not to be named because the discussions are private. The plan may not go ahead, they caution. A spokesman for Airbus declines to comment.

Airbus previously offered to build its A380 superjumbo in China in exchange for orders from the country’s airlines, but that pitch was rejected amid concerns about the double-decker plane’s suitability for the local market, according to two of the people. The smaller, more fuel-efficient A330neo is potentially a better fit, with more than 200 of the original-generation model already sold in the Asian nation.

Building wide-body jets in China would boost Airbus’ challenge to the US’ Boeing Co, which opened a so-called completion centre near Shanghai last year but has so far held off from assembling planes in the country. Manufacturers face a balancing act in transferring technology to China, which is set to become the world’s biggest aviation market in the next decade but is also seeking to build up its own know-how as a prelude to challenging Western dominance of global aerospace production.

Airbus’ move to extend the Tianjin plant — which currently assembles the single-aisle A320 workhorse — comes as Rolls-Royce Holding is said to be offering to establish a Chinese plant to secure an engine deal for the wide-body plane being developed by Commercial Aircraft Corp of China. The UK company is pitching a derivative of the Trent 7000 turbine for that aircraft, which is also the only option on the A330neo.

China will need almost 8,000 aircraft worth US$1.2 trillion ($1.6 trillion) over 20 years, according to Boeing estimates. President Xi Jinping has also earmarked aerospace as a priority industry, encouraging foreign producers to set up shop in the country, though both Boeing and Airbus are still a long way from offering the kind of expertise found at their factories in Seattle and Toulouse, France respectively.

The A330neo — abbreviated from new engine option — assembly plant would add to an existing completion and delivery centre for Airbus’ original A330, where planes get final touches before being shipped to the customers.

The upgraded aircraft entered service last year but has been battling for orders with Boeing’s more advanced 787 Dreamliner. Airbus has secured sales for 230 A330-900s but just eight smaller -800s, losing contracts from Hawaiian Holdings, which runs Hawaiian Airlines, and American Airlines Group along the way as they switched to the Boeing aircraft.

Airbus has since won a 40-jet deal from Emirates, though only after the Dubai carrier cancelled the bulk of orders for the A380, which Airbus announced earlier last month was being wound up. The company is also targeting a follow-on contract for 44 planes from Malaysia’s AirAsia Group that was announced but never signed.

Airbus mulling the building of newest wide-body jet in China to win orders?

Will the Rising Sun keep rising?

Fed signals higher-for-longer rates with hikes almost finished

EQT Impact Challenge offers platform for impact entrepreneurs to attain 'patient capital'

Singtel to sell 20% stake in regional data centre business valued at $5.5 bil

SoftBank has either reopened the IPO market or killed it

Capital management, cash flow and sustainability key focuses of S-REIT managers at forum 

Risk-free rates remain high as Fed puts hikes on hold

DBS upgrades Grab to ‘buy’ with higher TP of US$4.29

Airbus mulling the building of newest wide-body jet in China to win orders?

Related News

Highlights

Will the Rising Sun keep rising?

Related News

Hong Kong investor and EPF pare stake in Interra Resources, Riverstone respectively

DBS and Sea: Two ends of a barbell?

SGX sticks to multi-asset push as MSCI ditches Singapore to cast its lot with Hong Kong