Airbus SAS, which started its first aircraft assembly outside Europe yesterday, said it could buy up to US$1 billion in components from China by 2020, as the world’s most populous country may need 3,000 planes in the next 20 years.
The world’s largest aircraft maker will be able to assemble four A320s a month by 2011 in Tianjin. That will bolster Airbus’ procurement from the country from last year’s US$70 million, chief executive officer Tom Enders said.
“We’re already in a steep first year to increase our sourcing,” Enders said in a television interview before opening its Tianjin A320 assembly.
“In two years we’ll triple it, double it again in three, four or five years later,” he said.
Toulouse, France-based Airbus is making China as important as the US, Enders said, seeking to add sales in the world’s second-largest aviation market.
China may need 3,000 planes in the next 20 years as a growing economy and easier traveling rules spur airlines to expand, Airbus estimates.
Approximately one of every five orders for new planes this year may be by a Chinese airline, Airbus chief commercial officer John Leahy said. Airbus is poised to sign a 280-aircraft order with Chinese airlines before next January, Leahy said.
The order, comprising A320, A330 and A350 models, is pending approval by the Chinese government and may be split into two parts, he said.
About 96 percent of Airbus’ employment and 75 percent of its procurement is in Europe, while the company is selling the planes all over the world.
“We have to share it,” Enders said. “We can’t keep it all in Europe or the US.”
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