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Fri, May 18, 2007

Airbus Begins Work On Chinese A320 Plant

Aims To Increase Deliveries Of Most Popular Model

We're not sure how -- or if -- the Midwestern axiom "ya gotta make hay when the sun shines" translates into Chinese. It was with this mindset, however, European planemaker Airbus began work Tuesday on its joint venture A320 assembly line in Tianjin, China, while also announcing increases to the production rate of its most popular line of aircraft.

As Aero-News reported, development of the Tianjin plant was part of a 170-plane deal Airbus signed with China in 2006. The facility, slated to begin delivering aircraft in the first half of 2009, will eventually produce four planes per month, all for the Chinese market.

Airbus was quick to point out the Tianjin plant will have no impact on China's own plans to begin work on a homegrown, large commercial airliner.

"China, undoubtedly, has the ability to develop its own large airplanes," Airbus said, adding the agreement should have the effect of "strengthening industrial cooperation with China will help us achieve higher growth in this booming market."

The plant also serves to strengthen deliveries of Airbus' A320 aircraft family, the most brilliant ray of light in the planemaker's currently dour situation. The A320 is Airbus' most popular model by far, with sales of over 5,000 aircraft since its 1988 introduction.

Overall, Airbus hopes to raise A320 output to 40 planes per month by the end of 2009, including those built in China. Currently, Airbus sends 32 A320s out the door from plants in Germany and France each month.

The planemaker also said this week it will consider raising production of its widebody A330/A340 lines beyond its current plans to lift output from nine planes per month, already two planes above current production levels.

Nearly all of that increase will be in the form of the A330 twinjet, which has experienced a surge in sales due, in part, to continuing delays in the planemaker's A350 XWB program. To compensate customers for delays in receiving their A350s, Airbus has offered customers attractive deals on A330s as a stopgap measure, until the newer planes are ready for delivery.

Airbus is also likely hoping for a bump in A330 sales, should the US Air Force select the EADS/Northrop Grumman KC-330 (above) in its KC-X tanker competition. The plane -- essentially a commercial A330-200 adapted for the tanker role -- is competing against Boeing's similarly modified KC-767.

FMI: www.airbus.com

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