As international airplane manufacturing deflates, China’s “Big Plane Plan” to be breakthrough point

Just as the bankruptcy of US auto giants set off a chain of reactions, in the civil aviation manufacturing area, the shrinking orders of Boeing and Airbus will probably pose a risk to the whole supply chain.

Fairtheworld.com points out that the financial crisis has cut international transactions and tourism activities sharply, worse still, there’s the impact of H1N1 flu pandemic and recent air crash incidents. Combined, these factors have dragged down the number of travelers and the business of airline companies. Also, the continued hike of aviation oil products is stressing the operational cost of airline companies. Sharp business shrinkage and rising cost have jointly dealt a blow to airline companies, most of which are now losing money. This has forced them to reduce, delay, or cancel plane purchasing plans, throwing the evil to airplane manufacturers.

The International Air Transport Association said early in June that the passenger traffic of international airlines this year will be down 8 percent and the freight volume down 17 percent. About a US$9 billion loss is forecasted for the international airline transportation industry in the year. In addition, figures show that Boeing and Airbus got a lean order amount in the first half of the year. Bar those cancelled orders, the newly-acquired order was 66 units for Airbus and, pitifully, 1 unit for Boeing.

Fairtheworld.com predicts that the global aero manufacturing industry will be affected, and the aero parts makers will produce less as customers order less. It bodes ill for the aero parts manufacturing industry.

Meanwhile the Chinese are lavishing their strong interest and hiked enthusiasm on big planes. It is estimated that at least 50 percent of the planned airplanes by Chinese manufactures will need global sourcing. China is yet to develop capacities to produce large plane engines and avionic devices. This presents a good opportunity to the global aero manufacturing industry. Making early entry into the Chinese market and seizing cooperative opportunities will help buffer the impact of financial crisis on these enterprises and will provide a gateway into the supply chain of a country, which is set to become the third largest airplane manufacturer.

China’s “Big Plane Plan” and its huge helicopter shortfall offer wide market space for global aircraft manufacturers. The “Fair N Fair” 3D Virtual Expo platform, developed by Fairtheworld.com, is providing a connecting platform for these manufactures, linking airplane manufactures, aero parts makers, airline companies, and other airplane purchasers together. Fairtheworld, with its brand-new concept of an “e-commerce matrix” and its strength to integrate industrial chains, will invite global aero manufacturers to share the Chinese cake.