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19 Nov 2018

China Aviation Industry Newsletter 19 November

ATR 42-600 Finishes China Demo Tour The ATR 42-600 on Monday completed a demonstration tour of southwestern China, where it operated in mountainous environments to show its high-altitude capabilities. The tour saw the smaller of the ATR 600-series tandem of turboprops visit several airports in Yunnan Province, including the highest airport the ATR 42 has ever served, in Diqing, situated 10,787 feet above sea level. Other destinations included the similarly challenging airports in Lijiang and Kunming. ATR estimates that China will need 300 turboprops over the next 20 years to serve its developing regional airline environment and another 800 for general aviation segments. BOC Aviation announces delivery of 3rd Airbus A321NEO to Sichuan Airlines BOC Aviation announced the delivery of the third of five new Airbus A321NEO aircraft to Chinese carrier Sichuan Airlines. BOC Aviation said that all the five aircraft are from its existing order book. The first two were delivered in recent two months, and the remaining two will be delivered by the end of 2019. BOC Aviation delivers first Boeing 737 MAX 8 to Spicejet BOC Aviation has delivered the first of three Boeing 737 MAX 8 aircraft to Spicejet Limited. This aircraft is from the Company's existing order book. BOC Aviation Places Air Macau's First Three New Airbus A320NEO Aircraft BOC Aviation announced 19 November the placement of three new Airbus A320NEO aircraft with Air Macau all of which are scheduled for delivery in the first half of 2019. The aircraft will be powered by the Pratt & Whitney Geared Turbofan™ Engines. BOC Aviation CEO Robert Martin said “We are pleased to add Air Macau as a new customer and to support its fleet and network growth plans as it capitalises on its position in the thriving Pearl River Delta region. BOC Aviation is well-placed to support expansion in the China air transportation market with our most technologically advanced aircraft models.” CDB Aviation Takes Delivery of Its 100th A320 Family Aircraft from Airbus CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Limited announced 12 November the company took delivery of its 100th Airbus A320 Family aircraft. The A320neo aircraft, which will be operated by India’s low-cost carrier Go Air is part of a purchase and leaseback agreement signed with the carrier earlier in 2018. The delivery marks the overall 125th Airbus aircraft to join the lessor’s fleet. CDB Aviation President and Chief Executive Officer, Peter Chang said “We are thrilled to mark this major milestone by adding the 100th A320 Family aircraft to our rapidly expanding fleet. At the same time, this overall 125th Airbus aircraft to join our fleet demonstrates the increasing strength and robust capabilities of our global operation.” China Eastern to buy stake in Juneyao Air for US$450 million China Eastern Airlines plans to purchase a US$450 million stake in Juneyao Airlines, picking up an 8% stake in the smaller airline. The move follows a sale of more than 5% of its shares to Juneyao. The funds raised from the issuance will be utilized to acquire three B787s, purchase one spare GEnx-1B74/75 engine and repay bank loans. China Southern To Leave SkyTeam China Southern Airlines has decided to leave the SkyTeam alliance effective January 2019, leaving China Eastern and Xiamen Air as the two remaining members from mainland China. The decision opens the possibility of China Southern joining the Oneworld group. China Southern said its decision reflects its strategic development, the changing trends of the global aviation industry, and the evolution of alliances. China To Reach 20,000 GA Aircraft by 2035 China’s general aviation aircraft population is expected to reach 20,000 by 2035, according to a recently released white paper by the Aviation Industry Corporation of China (AVIC). As of last year, the country had approximately 3,000 general aviation aircraft registered. Between 2010 and 2017, annual general aviation flight hours in the country more than doubled, from 370,000 to 840,000 hours. By 2035, the general aviation fleet is predicted to log more than six million flight hours annually. Falko establishes leasing company in China (Tianjin) Leasing Co. Ltd. has been established in the Dongjiang Free Trade Port (DFTP) in Tianjin, China. This makes Falko Regional Aircraft Limited the first foreign aircraft lessor to set up a leasing business in the DFTP. “We are extremely pleased to be the first foreign regional aircraft lessor to establish a leasing business in the DFTP zone in Tianjin,” said Jeremy Barnes, chief executive officer of Falko Regional Aircraft Limited. “With Falko Tianjin we will be able to offer our specialist regional aircraft leasing capabilities to help the regional aircraft market to grow, which is in line with the Chinese government’s goal to improve regional air-connectivity throughout China.” UAC Head Details CR929 Market Outlook and Timetable Russia’s UAC sees Russia and China as the main markets for the two countries’ jointly developed CR929 widebody, anchoring a global market for about 8,000 airplanes worth $2.4 trillion over the next 20 years, according to an updated edition of the company’s market forecast presented at Airshow China 2018 in Zhuhai.  Offering a range of 6,500 nautical miles while carrying 280 passengers, the CR929 would compete directly with the Airbus A350 and Boeing 787. “Out of a thousand aircraft, our product would generate at least half of sales,” said Slyusar. UAC’s estimates call for China to take 250 and Russia 50. Acumen Aviation © 19 November 2018 All Rights Reserved.
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