First Airbus plant opens in China

Tianjin: Airbus, starting its first aircraft assembly outside Europe, said it may buy up to $1 billion of components from China by 2020, as the world's most populous nation may need 3,000 planes in the next 20 years.

The world's largest aircraftmaker will be able to assemble four A320s a month by 2011 in eastern China's Tianjin city. That will bolster Airbus' procurement from the country from last year's $70 million, said chief executive officer Tom Enders.

"We're already in a steep first year to increase our sourcing," Enders said in a television interview before opening its Tianjin A320 assembly.

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 travelling rules spur airlines to expand, according to Airbus estimate.

"The daily passenger volume has increased to about 200,000 yesterday at Beijing's airport," said the Chinese civil aviation regulator Li Jiaxiang.

"Air travel has recovered" after visa restrictions and excessive security checks crimped demand during the Beijing Olympics, he said.

Approximately one of every five orders for new planes this year may be by a Chinese airline, said Airbus Chief Commercial Officer John Leahy.

Airbus in June started shipping segments to be assembled to the Tianjin plant, its first assembly line outside Europe. The assembly line is a $600 million venture between Airbus and a Chinese consortium comprising Tianjin Free Trade Zone and China Aviation Industry Corp.

Big order: 280 planes

Airbus is poised to sign a contract to sell 280 commercial aircraft to Chinese airlines, said John Leahy, chief commercial officer of the world's largest aircraft maker.

The order for the Airbus A320, A330 and A350 models may be split into two parts, and is expected to be signed before the Lunar New Year in January 2009, Leahy said Friday in eastern China's Tianjin city.

The contract, agreed with Chinese airlines, is pending the government's approval

- Bloomberg