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Joint venture

June 23, 2009

European aviation giant Airbus is delivering its first Chinese-made airplane for use by Sichuan Airlines on Tuesday. The handover marks the establishment of Airbus inside the world's fast-growing economy.

The Airbus logo
Airbus hopes to increase orders from China at the expense of BoeingImage: AP

The Chinese-made A320 aircraft successfully completed a four-hour test flight earlier this year. It was officially delivered at a ceremony on Tuesday delivered to Sichuan Airlines, a regional carrier based in southwestern China, during a ceremony Tuesday.

"We will build a strong future with the China aviation industry and for the China aviation industry," Airbus CEO Thomas Enders said Tuesday. "(Airbus) will be working increasingly with our partners in China, setting new standards."

The first Airbus factory outside of Europe

China is keen produce its own products, not those of othersImage: AP

The Tianjin plant, which opened in September 2008, is modelled after a state-of-the-art Airbus factory in Hamburg, Germany. The plant is a joint venture between Airbus and a Chinese aviation consortium and costs some 10 billion yuan ($1.47 billion).

China has been an Airbus customer since 1985. Since then, Chinese orders have exceeded 700 aircraft and will be supplemented by a further 10 models, scheduled to leave the Tianjin plant by the end of the year. Come 2011, the factory is expected to be turning out 4 aircraft per month.

The Chinese aircraft market is the second largest in the world and already accounts for 15 percent of the European manufacturer's total sales. Chinese carriers are expected to purchase as many as 3,400 new aircraft in the coming two decades, and Airbus hopes to cash in on this by capturing half the Chinese market by 2012.

Airbus also has its eyes on the rest of Asia. At the Tianjin plant's inauguration, Airbus boss Enders said the factory would become "the jump off point for the future development of Airbus in China and in the region."

Made in China

However, Airbus may be wrong to expect booming business with China in the coming years. Although China has long been considered the factory of the world, it is no longer satisfied with simply producing for others. In 2006, Chinese Premier Wen Jiabao announced his country's intention to begin construction of its own aircraft.

China sees Airbus' presence as key to realizing this goal. By working as subcontractors to Boeing and Airbus, the Chinese have been able to learn about the construction of large passenger aircraft.

as/AFP/AP
Editor: Trinity Hartman

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