china seeks to emerge as a market leader with airbus purchase
China Seeks to Emerge As a Market Leader with Airbus Purchase
China has recently signed a purchasing contract with Airbus valued at a steep $788 million. The civil aircraft manufacturer will be providing 100 H135 aircrafts to China over the next 10 years, marking the first time a foreign firm will build helicopters in China. This is a way for Chinese companies to lead China to become a leading market for helicopters. As China increases the amount of offshore wind farms it has and their power industry expands, demand for helicopters is also expected to increase.
Airbus is taking a big leap of faith considering the mixed reviews based on the past experiences general aviation companies have had in the Chinese market. Not too long ago, the aerospace conglomerate Embraer put an end to the production of the Legacy 650 Jets in China- a 13 yearlong effort.
Embraer executives put the responsibility of the failed contract on China’s tax system, which makes it less expensive for buyers to buy from other countries and import the aircraft instead of buying directly from Chinese manufacturers. China lacks a strong infrastructure with tough regulations that allow other markets to thrive. Demand for private aircrafts has also not materialized the way China had anticipated. If China manages to get all of those characteristics together, they could reach their goal to be the biggest market for helicopters.
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