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Airlines

Name: CHINA AVIATION SUPPLIES HOLDING COMPANY
7JetSet7 Code: CSC
Status: Operational
Region: CHINA
City: BEIJING
Country: CHINA
Employees 77
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Background
(definitions)

THE CIVIL AVIATION ADMINISTRATION OF CHINA (CAC) HAS A BRANCH CALLED CHINA AVIATION SUPPLIES CORPORATION (CASC) WHO PURCHASE JET AIRPLANES.

It was established in October 2002 as one of the China Civil Aviation Administration (CAAC) (CAC)’s 6 air transportation and support holding companies. Since it was founded, (CASC) has agreed to a total of 14 framework agreements with Airbus (EDS) and Boeing (TBC) covering 779 airplanes, according to the body’s website.

China (People's Republic of China) was established in 1949, it covers an area of 9,560,980 sq km, its population is 1,265 million, its capital city is Beijing, and its official language is Chinese.

APRIL 1993: $800 MILLION, 20 ORDERS 737-300'S & 1 757-200.

NOVEMBER 1994: 2 ORDERS (AUGUST 1995) 737-300'S.

JUNE 1996: 20 ORDERS A320'S (10 TO CHINA SOUTHERN AIRLINES (GUN).

JULY 1996: 20 ORDERS MD-90'S (ASSEMBLED IN LONG BEACH) FOR 11 TO CHINA NORTHERN AIRLINES (SHY) AND 9 TO CHINA EASTERN AIRLINES (CEA) (NOVEMBER 1997).

DECEMBER 1996: (CGAC) 3 ORDERS (MAY 1997) 737-300'S, (GUI) LEASED, 140 PAX.

MAY 1997: FOLLOWING THE VISIT BY FRANCE PRESIDENT, JACQUES CHIRAC, AIRBUS (EDS) RECEIVES $1.2 - 1.7 BILLION ORDERS OF 10 A320's & 20 A321'S. 3 WILL GO TO CHINA SOUTHERN AIRLINES (GUN) FOR TOTAL 20, AND 3 TO SICHUAN AIRLINES (SIC).

OCTOBER 1997: BOEING (TBC) RECEIVES $3 BILLION ORDERS FOR 50 AIRPLANES: 36 737-NG'S, 5 757'S, 1 747-400, 8 777-200'S.

JULY 1998: FOLLOWING USA PRESIDENT, BILL CLINTON'S VISIT TO CHINA, THERE WAS AN ANNOUNCEMENT OF A BOEING (TBC) ORDER (TBC) OF $3.4 BILLION, 10 ORDERS 737-NG'S AND 1 747-400.

OCTOBER 1999: THE CHINA PRESIDENT'S VISIT TO FRANCE RESULTS IN AN AIRBUS (EDS) ORDER FOR 10 A318'S, 10 A319'S, & 8 A340-500/-600'S.

MARCH 2000: CONVERTED 2 ORDERS A320'S TO A321'S FOR TOTAL 10 A321'S ALL ALLOCATED TO CHINA NORTHERN AIRLINES (SHY).

(CAAC) CHIEF, LIU JIANGFENG, REPORTS A COMBINED CHINESE AIRLINES NET PROFIT OF +$95 MILLION, AFTER HEAVY LOSSES IN 1998. A BAN ON NEW AIRPLANE ORDERS REMAINS IN PLACE.

JULY 2000: 1 767-332ER (20597, N179DZ), EX-DELTA AIRLINES (DAL) FOR CHINA UNITED AIRLINES (CUL).

OCTOBER 2001: $1.6 BILLION 30 ORDERS (FEBRUARY 2002) 737'S: 4 737-700'S FOR CHINA EASTERN AIRLINES (CEA); 1 737-700 & 2 737-800'S FOR SHANGHAI AIRLINES (SHA); 3 737-800'S FOR HAINAN AIRLINES (HNA); & 20 737-800'S FOR CHINA SOUTHERN AIRLINES (GUN).

April 2003: Following the visit of the French Prime Minister to Beijing, (CAC)/(CSC) announced orders (February 2004) of 16 A319's, 10 A320's & 4 A330's for China Southern Airlines (GUN); China Eastern Airlines (CEA); Air China (BEJ), Sichuan Airlines (SIC), and Hainan Airlines (HNA).

February 2004: CASC (CAC) transferred 4 orders A319's to Sichuan Airlines (SIC); 4 orders A321's to China Eastern Airlines (CEA); & 4 orders A330's to China Southern Airlines (GUN).

June 2004: Memo of Understanding (MOU) 60 orders 787-8's for operations by China Southern Airlines (GUN); Air China (BEJ); China Eastern Airlines (CEA); & Hainan Airlines (HNA); with commitments also expected for Shanghai Airlines (SHA) and Xiamen Airlines (XIA). 20/10 orders (February 2006) A330-300's valued at $2.4 billion which will be delivered to China Eastern Airlines (CEA).

November 2005: Boeing (TBC)'s big weekend in Dubai was boosted by reports that the Chinese government will buy 70 737s as part of an effort to mitigate its expected $200 billion trade surplus with the USA. The $4 billion deal reportedly is the largest in Chinese aviation history. No formal announcement was made, but USA National Security Council Senior Director-Asian Affairs, Mike Green confirmed the order to reporters traveling in China with President George Bush, saying, "It's a very important thing and I think it's a testament to how our approach to China is yielding real results."

Hong Kong's "South China Morning Post" reported over the weekend that the order eventually might be as large as 150 737s, but neither (TBC) nor the Chinese government commented.

China signed a deal for 70 737-700/-800s for delivery between 2006 and 2008. The airplanes are destined for: Air China (BEJ), China Southern Airlines (GUN), China Eastern Airlines (CEA), Shanghai Airlines (SHA), Xiamen Airlines (XIA), Shandong Airlines (SHG), Hainan Airlines (HNA) & Shenzhen Airlines (SHZ).

December 2005: Airbus (EDS)'s negotiations with Chinese authorities resulted in a blockbuster contract as (EDS) reached a "general terms agreement" with Chinese Aviation Supplies Import and Export Group (CSC) for the purchase of 150 A320 family airplanes.

The order comprises A319s, A320s and A321s – the largest single order (EDS) has ever received since it entered the Chinese market 20 years ago. The deal is worth nearly $10 billion and was signed in the presence of French Prime Minister, Dominique de Villepin and Chinese Premier, Wen Jiabao during the latter's visit to France.

"Since it was 1st introduced into the Chinese market in 1995, the A320 family airplanes have been put in service by 10 Chinese operators with a total of 216 airplanes, accounting for two-thirds of all in-service (EDS) airplanes, or nearly one-quarter of the total airplanes in operation in China,” said (CSC) President Li Hai. “The demand for this modern and cost-saving airplane family from Chinese airlines has been rapidly increasing in recent years."

The 150 airplanes will be delivered to 6 Chinese airlines, including Air China (BEJ), China Eastern Airlines (CEA), China Southern Airlines (GUN), Sichuan Airlines (SIC), Shenzhen Airlines (SHZ), and Hainan Airlines (HNA).

The agreement followed by 1 day, the signing of a Memo of Understanding (MOU) between Airbus (EDS) and the National Development & Reform Commission of China covering Chinese participation in (EDS) programs including the possibility of establishing a final assembly line "for single-aisle airplanes in China."

5 Chinese companies currently produce parts for (EDS), which has committed to increase procurement volume to $60 million by 2007 and $120 million by 2010. It employs 54 Chinese engineers, soon to be 200, at its Beijing engineering center, which will be part of China's promised participation in the A350 program. (EDS) and China Aviation Industry Corporation (CSC) signed a $500 million extension last month to a contract for A320 family wing boxes.

April 2006: Boeing (TBC) announced the signing of a general purchase agreement with China Aviation Supplies Import and Export Group (CSC) for 80 737NGs, completing a deal launched last November with a commitment for 70 737s made at the Dubai Air Show. 50 of the 70 airplanes eventually were booked the following month, with the remaining 20 ordered in January. (TBC) said it would finalize agreements for the distribution of the new airplane order with individual Chinese carriers in the coming weeks. (TBC) said the 737 family comprises 41% of China's fleet of 542 passenger airplanes.

May 2006: The Chinese government is expected to invest a further CNY140 billion/$17.43 billion in aviation over the next 5 years, more than the country spent in the previous 15, according to local media reports. The CAAC (CAC) said the spending would be focused on the construction of 42 new airports, in addition to upgrading existing infrastructure. The CAAC (CAC) expects the number of Chinese airports to increase from the current 142, to at least 220 by 2020, as the number of airplanes rises from 863 to 1,580 in 2010 and to about 4,000 in 2020.

Top of the regulator's agenda is to reinforce the status of Beijing Capital, Shanghai Pudong and Guangzhou Baiyun as key international hubs, and to upgrade Chengdu, Kunming, Xi'an, Wuhan and Shenyang airports to the status of major regional hubs. Yunnan Province in the southwest of the country will account for nearly one-seventh of the planned spending, as it adds another 5 airports by 2010.

The CAAC (CAC) expects overall passenger and cargo traffic to grow at an average of +14% annually through 2010, with growth slowing to +11% per year from 2011 to 2020. Last year, domestic airlines carried 138 million passengers, an increase of +15.5% from the previous year. Cargo traffic increased at +13.8% to 3.4 million tons over the same period.

June 2006: Air China (BEJ) will purchase 24 A320 family airplanes for $1.74 billion, Reuters reported. The order is part of the deal Airbus signed with Chinese Aviation Supplies Import and Export Group (CSC) last year for 150 airplanes.

September 2006: Chinese airlines have been forced to cut fares to Tibet by up to -55% following the opening of the Qinghai - Tibet railway, according to China Daily, as concern grows among carriers over the impact of rail expansion.

The paper reported that nine flights operated by Air China (BEJ), Sichuan Airlines (SIC), and China Southern Airlines (GUN) have been discounted -45% - -55% since September 13. The Qinghai - Tibet railway opened July 1 and the train fare between Chengdu and Lhasa is CNY331/$41 with a sleeper fare of CNY712. Airlines now are offering fares on the route at CNY975.

Such price decreases in the face of rail competition may portend future fare wars between modes of transport in the world's most populous nation. China has embarked upon an aggressive expansion of its railway network and also increased the speed of trains on the existing network. Last year, Siemens AG snared a contract for 60 600-passenger high-speed trains capable of 300 kph for introduction in 2008 connecting China's major cities. This year, many of the express trains had speeds lifted to 200 kph. Since 1997, the speeds of Chinese trains have been boosted four times to meet demand.

By 2020, China expects to build 10,000 km of new railway track with 2,000 km of high-speed track, which will include the $12 billion, 1,300-km Beijing - Shanghai Express. The line will link some of China's wealthiest and most industrialized cities and likely will impede airlines' ability to raise fares on some high-density routes.

Hainan Airlines (HNA) ordered 15 additional 737-800s, completing the distribution of the 150-airplane order placed by China Aviation Supplies Import and Export Group (CSC). The 150 737-700s/-800s are worth approximately $10 billion at list prices and will delivered to Air China (BEJ) (25), China Eastern Airlines (CEA) (20), China Southern Airlines (GUN) (30), Shandong Airlines (SHG) (12), Shanghai Airlines (SHA) (13), Shenzhen Airlines (SHZ) (10), Xiamen Airlines (XIA) (15) and Hainan (HNA) (25) between this year and 2010.

Airbus received much-needed boosts from opposite sides of the world yesterday as the Chinese government (CSC) and an Ohio-based startup Skybus (SKS) placed large airplane orders.

In Beijing, the manufacturer and China Aviation Supplies Import and Export Group Corp (CSC) signed a general terms agreement for 150 A320s and a letter of intent for 20 A350 XWBs. The A320s are on top of the 150 ordered by (CSC) last year. (CSC) President, Li Hai and Airbus (EDS) President and CEO, Louis Gallois signed the deals before Chinese President Hu Jintao and visiting French President Jacques Chirac. Airbus called it "the largest single transaction ever."

Said Li: "These commitments are new milestone achievements in the history of the close cooperation between our two companies. We are pleased to develop our cooperation with more A320 family airplanes and we are happy to introduce the Airbus A350 XWB family airplanes, which represents the 21st century solution for an aircraft in this size category, into China. We believe that more Chinese airlines will select this new generation airplane for daily operation in the future."

Meanwhile, low-fare startup Skybus Airlines (SKS) signed a firm order for 65 A319s, a deal the manufacturer said is "among the largest single orders ever by a USA carrier." Skybus (SKS), based at Port Columbus (Ohio) International Airport, has yet to announce its schedule or destinations, but said it will operate the A319s in a single-class configuration, when it begins taking delivery in late 2008. No engine choice was announced. The airline intends to launch operations early next year with leased A319s.

"It has been a few years since an order of this meaning and magnitude has come from a low-cost startup airline, and we are professionally flattered that Skybus (SKS) has turned to the A319 as the core of its fleet," Airbus COO, John Leahy said.

Back in Beijing, Airbus and a consortium comprising the Tianjin Free Trade Zone and China Aviation Industry Corps I and II confirmed establishment of an A320 final assembly line. Tianjin was announced as the likely site in June. Subject to formal approval by the Chinese government, the agreement calls for assembly to begin in early 2009, with production ramping up to four airplanes per month by 2011. Airplane sections will continue to be produced in Europe, Gallois noted. It is expected that many of the A320s ordered yesterday will be assembled in China.

April 2007: USA Transportation Secretary, Mary Peters said last week during a Chinese tour that the USA is seeking an "open skies" agreement with the world's most populous nation similar to the recently agreed USA - (EU) accord and hopes to have "the basic framework" for a deal in place next month. "I do believe that we can reach a meaningful agreement by May [when Chinese Vice Premier, Wu Yi and USA Treasury Secretary, Henry Paulson are scheduled to meet in Washington] . . . and then consummate that agreement, we would hope, by the end of the calendar year," Peters said. She expressed the sentiments both in speeches and at press briefings during a tour that took her to Shanghai for the signing of an agreement establishing (UPS)'s new China air hub and to Beijing for talks with transport officials. The two nations reached an accord in 2004, that expanded passenger services and cleared the way for USA cargo carriers such as (UPS) and FedEx (FED) to establish air hubs in China without being subject to restrictions. Both plan to have hubs operational next year, with FedEx (FED) based in Guangzhou, and (UPS) in Shanghai. Peters said she wants to see regulatory barriers for passenger services lowered as well. "Demand for nonstop USA - China service is there, but unfortunately the supply is not," she said. Pointing to gains resulting from the 2004 agreement, she noted that "the number of passengers traveling between China and the United States [in 2006] was more than double the 2003 level. Airfreight volumes also have taken off dramatically, rising from about 270,000 tons in 2003 to almost 400,000 tons in 2006." She said a broader agreement would have benefits for both nations. Her comments last week came in the wake of growing tension between the USA and China in other economic sectors, signaling that air transport is an area where USA officials believe headway can be made despite other points of dispute.

June 2007: 15 orders A320s.

July 2007: Looking to reinforce their positions in an increasingly crowded domestic marketplace, Hainan Airlines (HNA), Shanghai Airlines (SHA), Spring Airlines (CQH), and China United Airlines (CUL), among others, are planning airplane buys this year. China Southern Airlines (GUN) and Air China (BEJ) set the orders in motion recently with commitments for 45 and 23 narrowbodies respectively. "As far as I know, almost every Chinese carrier intends to buy airplanes this year, and we will announce our airplane purchase very soon," Hainan Assistant President & Director Marketing & Sales, Deng Jian said. He refused to reveal the number of planes the company plans to buy. Shanghai Airlines (SHA) said it will purchase 2 to 3 airplanes this year, and subsidiary China United (CUL), a 737 operator based at Beijing Nanyuan, will take an additional two. A Spring (CQH) spokesperson said the Low Cost Carrier (LCC), which flies A320s, will "definitely buy more airplanes as airplane lease expenses are much higher than airplanes purchased from a long-term perspective." It currently has seven airplanes on lease. Spring (CQH) Chairman, Wang Zhenghua noted the company plans a stock listing to finance the acquisition of six A320s in 2009.
"Each year all Chinese airlines expand their fleets, but this year it is notable as there are so many aircraft orders, which is mainly attributable to the changes taking place in the Chinese air transport market," China United (CUL) Vice Managing Director, Yu Biao said. The key changes, according to industry analysts, are airlines' penetration into western China and increased liberalization from Beijing. A source at Air China (BEJ) revealed that the 23 A320s just ordered will operate routes in the southwest beginning in 2009. "We are attaching much importance to exploring the West China market and hope to improve our competitiveness by a capacity increase in this region," the source said. Competition in the west has increased dramatically. (HNA) Group launched Dali-based Lucky Air (LKY) and Chongqing-based West China Airlines (WCA), China Southern (GUN)started Chongqing Airlines (CHO), Sichuan Airlines (SIC) acquired a 20% stake of Chengdu-based United Eagle Air (UEG), and Shenzhen Airlines (SHZ) plans to launch its joint venture with Mesa Air Group - - Xian-based Kunpeng Airlines - - by year end.

"Chinese carriers are feeling pressured as Beijing has adopted a policy of liberalizing the air transport market, which can partly explain why Chinese airlines are increasing airplane orders to boost domestic capacities," Rolls-Royce (RR) China Aviation Dept Sales Director, Wei Yu said. The expanded aviation agreement with the USA, also is a factor, Wei said, as capacity shortage is one reason Chinese carriers face an inferior competitive situation with their counterparts across the Pacific.

Earlier this year, AVIC I forecast that China will need 3,110 airplanes in the next 20 years and that the demand for 200-seat airplanes will continue to rise.

August 2007: Chinese airlines are expected to expand their collective fleet by +12% annually and reach 1,550 airplanes by 2010, a CAAC (CAC) source revealed. China's registered fleet numbered 1,039 at the end of 2006, up +15.6% from the year before. As competition increases in the domestic market, Chinese airlines typically are looking to solidify or enhance their competitive positions through airplane purchases. China Southern Airlines (GUN), Air China (BEJ), and China Eastern Airlines (CEA) set the orders in motion last month with commitments for 45, 23 and 10 narrowbodies, respectively. Hainan Airlines (HNA), Shanghai Airlines (SHA), Spring Airlines (CQH), and China United Airlines (CUL) also are planning airplane buys this year.

November 2007: China's government reached agreement with Airbus (EDS) on firm orders for 110 A320 family airplanes and 40 A330s valued at approximately $15 billion, and also signed a Memo of Understanding (MOU) with the manufacturer stipulating that Chinese industry will take a 5% stake in A350 XWB production.

China Southern Airlines (GUN) signed a separate contract for 10 A330-200s. The announcements of the large airplane order and industrial cooperation on the A350 XWB coincided with high-profile meetings taking place in Beijing, between French President, Nicolas Sarkozy and Chinese President, Hu Jintao, both of whom were present for the signing of the (MOU) by Airbus (EDS) (COO), Fabrice Bregier and National Development & Reform Commission (NDRC) Vice Minister, Chen Deming. According to Airbus (EDS), the (MOU) states that Airbus (EDS) and (NDRC) will "carry out high-level industrial cooperation on A350 XWB development and manufacturing work, in order to enhance a closer strategic cooperation relationship between Airbus (EDS) and the Chinese aviation industry. Airbus (EDS) confirms its intent to manufacture 5% of the airframe of the A350 XWB airplanes in China." It added that a joint venture manufacturing plant will be established in Harbin in 2009 with AVIC II subsidiary, Harfei Aviation Industry Co "to produce [A350 XWB] composite material parts and components."
Airbus (EDS) noted that 6 Chinese manufacturers "are already involved in manufacturing parts, such as wing components, emergency-exit doors and maintenance tools for Airbus (EDS) airplanes." The plane maker also holds a 51% stake in a Joint Venture (JV) A320 Final Assembly Line (FAL) in Tianjin, with 1st delivery from the (FAL) expected in the second half of 2009. The 160 airplanes ordered raise the possibility that Airbus (EDS) will top rival Boeing (TBC) in 2007 orders, which was not anticipated earlier this year, even by Airbus (EDS) executives with the company in the midst of launching its "Power8" restructuring program. Aside from the 10 A330-200s going to China Southern (GUN), distribution of the other 150 airplanes to Chinese airlines was not revealed, nor is it clear how many of the A320s will come from the Tianjin (FAL).

December 2007: China Eastern Airlines (CEA) applied to the Chinese government (CAAC) (CAC) to be allocated 40 of the 110 A320 family airplanes, Beijing recently agreed to purchase from Airbus (EDS) and is contemplating ordering a similar number of 737s. It also plans to give Singapore Airlines (SIA) executives significant management roles following next month's expected closing of (SIA)'s and parent Temasek's 24% stake purchase, according to Chairman, Li Fenghua. Li is in Hong Kong, touting the virtues of the (SIA)/Temasek deal, and in interviews with various media outlets, hinted at the carrier's future plans. He told "Reuters" that (CEA) formally has asked the government for 40 A320s that were part of the recent Airbus (EDS)/China accord, but conceded that it is "still uncertain how many we will get." He added that the carrier has had discussions with Boeing (TBC) regarding fleet expansion and may order up to 40 737s.

He also revealed that (SIA) officials will play a significant role in (CEA) management, following what he believes is near-certain approval from shareholders next month of the (SIA)/Temasek deal. (CEA) already had announced that (SIA) Chairman Stephen Lee, and (CEO), Chew Choon Seng will join an expanded (CEA) board. Li told "The Wall Street Journal" that (SIA) also "will send 10 personnel from various departments to work side-by-side with us, mainly in Product Development, Sales & Mmarketing, and Treasury Operations. This is long term. They will actually be on permanent secondment to China Eastern (CEA)." He added that the (SIA) officials assigned to (CEA) "will have sufficient authority to implement the changes they see as necessary. As Chairman, I will see that this happens. They are not coming just to be advisers. Otherwise, we could have just employed consultants." In addition, 20 (CEA) managers will spend six months in Singapore following the stake purchase, studying (SIA)'s management strategies and operations, he said.

June 2009: (CASC) (CSC)/Airbus (EDS) Customer Services training and support center in Beijing is looking to adjust its business model as more airlines acquire their own full flight simulators (FFS)s, Managing Director Administration & Programs, Michelle Pierre Petit said. The 18,800-sq-m facility, which opened in 1997, includes two A320 and one A330/A340 simulators. "More airlines buying their own simulators means we have to also focus on training the trainers," Petit said. The facility has about 20 airline customers, but there currently are 16 A320 (FFS)s in China with more to come. The expected addition of an A380 simulator at Malaysia Airlines (MAS) will present competition on that front as well, Petit said.

February 2010: Air China (BEJ) signed a purchase agreement with Airbus (EDS) for 20 A320s for delivery in 2011 to 2014, according to a filing with the Hong Kong Stock Exchange. The airplanes are worth $1.63 billion at list prices, but (BEJ) said it was afforded "significant price concessions." It said the new airplanes will support a new hub in Chengdu "and expand the fleet capacity of the company in southwestern China while supplementing, to an appropriate extent, the flights in eastern China." (EDS) confirmed that the contract covers airplanes that were part of the 2007 order from China Aviation Supplies Import and Export Group Corporation that were included in (EDS)'s 2008 order book.

November 2010: China Aviation Supplies Holding Company (CSC) has signed with Airbus (EDS) for a total of 102 airplanes of which 66 are new orders. The new orders comprise 50 A320 Family airplanes, six A330s and ten A350 XWBs. The agreement was signed by Li Hai, President of (CSC) and Tom Enders, President & CEO of Airbus (EDS).

June 2011: China Aviation Supplies Holding Company (CSC) and (ICBC) Financial Leasing inked an accord with Airbus (EDS) to purchase 88 A320 family airplanes.

(ICBC) Leasing signed a purchase agreement for 42 A320 family airplanes and the manufacturer said (CSC) would take the other 46 airplanes. The deal was signed in Berlin, where Chinese Prime Minister, Wen Jiabao was meeting with German Chancellor, Angela Merkel.

Airbus (EDS) President & CEO Tom Enders pointed out the order is the first that (ICBC) Leasing has placed directly with an airplane manufacturer. (ICBC) Leasing currently has 68 airplanes in its portfolio. "This strategic decision to start with the A320 family airplanes will help our customers to develop their business in the most profitable and sustainable way," (ICBC) Leasing Chairman, Li Xiaopeng stated. Deliveries are scheduled to begin next year.

(EDS) noted that 575 A320 family airplanes were in operation in China as of May 31. This signing comes on the heels of the Chinese government's action in Beijing, when dissatisfied with the (EU)'s refusal to back away from non-(EU) airlines' pending inclusion in its Emissions Trading Scheme (ETS), it reportedly blocked Hainan Airlines (HNA)'s subsidiary, Hong Kong Airlines (CRY) from ordering 10 A380s.

April 2013: China Aviation Supplies Holding Company (CASC) (CSC) has signed a provisional agreement to buy 60 Airbus (EDS) airplanes, comprising 42 A320 family airplanes and 18 A330s.

The “general terms agreement,” signed by (CASC) President, Li Hai and Airbus (CEO), Fabrice Brégier, was one of a number of France - China agreements signed in the presence of the visiting French President, François Hollande and Chinese President, Xi Jinping. “As congestion puts pressure on airports in large cities in China, the A330 is an excellent solution as larger airplanes can transport more passengers with less flights,” Brégier said.

A320 family airplanes are operated by 14 Chinese airlines, with 750 in service. China also has 110 A330s in service with 6 airlines.

The end customer for the airplanes and delivery timescales were not disclosed.

(CASC) was established in October 2002 as one of the China Civil Aviation Administration (CAAC) (CAC)’s 6 air transportation and support holding companies. Since it was founded, the (CASC) has agreed to a total of 14 framework agreements with Airbus (EDS) and Boeing (TBC) covering 779 airplanes, according to (CSC)’s website.

Previous (CASC) Airbus (EDS) agreements consist of a deal for 102 airplanes, including A320s, A330s and A350 XWBs, in 2010 and another for 88 A320s in 2011.

October 2013: The Boeing Company (TBC) has secured commitments for around 200 of its 737 Max airplanes, the upgraded variant of its best-selling short-haul planes, from multiple Chinese customers, said two sources familiar with the deals.

The deals are worth a combined $20.7 billion at list prices and must be approved by the Chinese government, a usual practice for airplane orders in the country, before the customers can be identified, the sources said.

These are the 1st commitments for the 737 Max from China, the world’s fastest-growing airline market. Officials from both (TBC) and Airbus (EDS), which makes the A320 that competes with the 737, have said China is likely to overtake the United States as the world’s largest market over the next 20 years.

The commitments come from a range of customers including state-owned airlines via the national procurement agency, China Aviation Supplies Holding Company (CSC), as well as leasing firms associated with the country’s banks, the sources said.

September 2014: China Aviation Supplies Holding Company (CSC) has signed a General Terms Agreement fore the purchase of 70 Airbus (EDS) family airplanes. The deal reflects strong demand from Chinese carriers for Airbus' single-aisle family of airplanes for domestic, low cost regional and international operations.

July 2015: Aircraft procurement firm, China Aviation Supplies Holding Company (CSC) has signed a “general terms agreement” (GTA) for 45 Airbus A330 family aircraft and a Memo of Understanding (MOU) covering 30 A330 options.

The 2 agreements were signed by the heads of (CSC) and Airbus (EDS), in the presence of Chinese Premier, Li Keqiang and French Prime Minister, Manuel Valls. “The package order is a new vote of confidence in our A330 family aircraft,” Airbus President & (CEO), Fabrice Brégier said.

Chinese Premier, Li Keqiang arrived in Toulouse from Marseilles on Air China (BEJ) 747-4J6 (1054-25883, /95 B-2447).

Airbus (EDS) already has >1,150 aircraft in service with Chinese operators, comprising >980 A320 family aircraft, >150 A330 family aircraft, and 5 A380s.

(CSC), established in October 2002, specializes in aircraft procurement, support services and supplies. Excluding these most recent agreements, (CSC) has signed 21 package-purchase contracts totaling >1,500 aircraft since 2002.

October 2015: China Aviation Supplies Holding Company (CSC) has signed a general terms agreement covering 30 Airbus A330 family aircraft and 100 A320 family aircraft.

State-owned (CSC) is a neutral third-party aviation supplier, which acts as a “supplies sharing platform,” allocating aviation resources in partnership with Chinese airlines and foreign aircraft manufacturers.

The A330 deal firms a commitment signed in June 2015. “With these 30 A330 options now firmed up, (CSC)’s total number of orders for the popular A330 is this year 75 aircraft,” Airbus (EDS) President & (CEO), Fabrice Brégier said.

Earlier this year, Airbus finalized plans to establish an A330 completion and delivery center in Tianjin, joining its existing A320 family facility. “This will enable us to be even closer to our customers and to take our long-standing mutual beneficial partnership with China to a new height,” Brégier said.

Airbus (EDS) is expecting China to become the world’s largest domestic market within 10 years and for its overall traffic to quadruple over the next 20 years.

“In the next 20 years, Airbus (EDS) forecasts a demand in China for some 5,400 new passenger and freighter aircraft, including 1,700 wide body aircraft like the A330, A350 and A380,” Airbus (EDS) said.

China has >1,200 Airbus aircraft in service, comprising >1,000 A320 family aircraft, >160 A330 family aircraft and 5 A380s, as well as Airbus freighters and corporate jets.

November 2017: China Aviation Supplies Holding Company (CASC) (CSC) has signed orders and commitments covering 300 Boeing airplanes, valued at >$37 billion at list prices.

The deal, which was signed in Beijing on November 9, coincided with USA President Donald Trump’s state visit to China. Chinese President Xi Jinping also attended the signing ceremony.

Boeing (TBC) said the agreement includes orders and commitments for 300 single- and twin-aisle airplanes, although (TBC) did not specify airplane types.

According to some Chinese news reports, the 300 airplanes include 260 Boeing 737 family airplanes and a total of 40 airplanes from the 787 and 777 families.

Boeing Commercial Airplanes (BCA) President & (CEO) Kevin McAllister described China as “a valued customer and a key partner.” >50% of all commercial jetliners operating in China are Boeing airplanes.

“Boeing (TBC) and China have a strong history of working together based on great mutual respect, and these orders build on that foundation,” McAllister said.

China has a component role on every Boeing commercial airplane model (the 737, 747, 767, 777 and the 787) and >9,000 Boeing airplanes fly worldwide with China-built parts and assemblies.

“Boeing and China continue to work on mutually beneficial ways to grow and support the aviation market. These efforts include industrial cooperation, the development of technologies to reduce aviation's environmental impact and enhance sustainability, and continued cooperation to support the safety, efficiency and capacity of China's air transport system,” Boeing said.

Fleet:
(definitions)

December 2017:

13 737-3J6, LST (BEJ), 4 WET-LST (TJA).

2 737-3Q8, LST (GUN).

3 737-3WO, LST (YUN).

10 737-3ZO, LST (XIN).

12 737-31B, LST (GUN), 1 (GUN) WET-LST (GIZ), 1 WET-LST (SHT).

1 737-31L, LST (GUN).

1 737-31L, LST (XIJ).

2 737-31L, LST (SHZ).

2 737-33A, LST (CUL).

2 737-34N, LST (CUL) (2746-28081, /95 B-4020; 2747-28082, /95 B-4021) VIP.

1 737-341, LST (YUN).

1 737-241, LST (XIH).

3 737-35N, LST (SHG).

3 737-37K, LST (GUN).

2 737-39K, LST (XIH).

46 ORDERS 737-NG (CFM56-7).

4 ORDERS 737-700, LST (CEA) (2002-09).

1 ORDER 737-700, LST (SHA) (2002-02).

2 ORDERS 737-800, LST (SHA) (2002-02).

3 ORDERS 737-800, LST (HNA) (2002-02).

20 ORDERS 737-800 (2002-02).

1 747-4J6, LST (BEJ).

10 757-2Z0, LST (XIN), 1 XIN WET-LST (ANE).

1 757-2Z0, LST (GUN).

7 757-21B, LST (GUN).

1 757-236, LST (GUN).

2 757-25C, LST (XIA).

1 767-332ER (797-30597, N179DZ), EX-(DAL), FOR (CUL), FOR CONV TO VIP, (ETOPS) EQ'PD.

3 767-3W0, LST (YUN).

8 ORDERS 777-200.

60 ORDERS 787 DREAMLINER.

40 ORDERS MD-80/-90.

20 ORDERS MD-90 (ASSEMBLED IN LONG BEACH).

300 ORDERS A319/A320/A321:

88 ORDERS A320 FAMILY AIRPLANES:

10 ORDERS A318.

26 ORDERS A319, INCL 4 (SIC).

148 ORDERS A320.

10 ORDERS A321, LST (SHY) & 4 (CEA).

140 ORDERS A330.

30 ORDERS A330-313X (402, B-18801; 406, B-18802; 411, B-18803; 415, B-18804; 433, B-18805), INCL 4 (GUN).

8 ORDERS A340-500/-600.

20 ORDERS A350 XWB.

7 IL-76.

Management:
(definitions)

LI HAI, PRESIDENT.

 
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