China Company Research -- Xi'an Aircraft International Corporation (XAIC) - 2nd versionChina Market ReportSeptember 30, 2008 25 Pages - SKU: CMP2073244 |
| The goal of XAIC’s civil aircraft is the world's largest regional turboprop aircraft manufacturer in 10 years According to the forecast of Bombardier Inc and China Aviation Industry Development Research Center, that in the next 20 years the global total demand for regional aircraft is 5300-5500, of which 1900 is turboprop regional aircraft, this figure does not include some multi-purposed aircrafts which are derived from turboprop regional aircraft, therefore, the global turboprop aircraft market is on rising and have more room for development. Currently there are three major turboprop regional aircraft manufacturers in the world: ATR, Bombardier Inc and XAIC. The product of civil aircraft of XAIC is Xinzhou series, currently Xinzhou 60 (MA60) is already achieved the mass production and the first Xinzhou 600 (MA600) will delivery by 2009, Xinzhou 700 (MA) is on trail. In the first half of 2008 Xinzhou 60 delivered only 9 due to the lack of parts supply, accounting for 40.91 per cent of the whole year planning. The major customers of MA60 are from Asia and Latin American, such as Zimbabwe, Congo, Zambia, Laos, Indonesia, Bolivia and other countries and Africa will be the priority market to develop, in the next 10 tears, the annual passenger capacity of African Airlines will grew 4.4 per cent, which will greatly promote the demand of civil passenger and cargo aircrafts in African, where will need about 500 new aircrafts, therefore, the African market will bring more orders for MA 60. MA 600 is the upgrading of MA60. Compared with MA 60, MA 600 improved the structure and integrated avionics systems and enhance the comfort and upgrade its economic feature, more energy-save. The price of MA 600 is expected between 100 to 120 million yuan, the similar foreign aircraft sells $18-20 million (about 124 to 138 million yuan), compared to the price, Xinzhou remains considerable price advantage. In terms of the operating costs, MA 600 is 40 per cent lower than jet aircraft. MA 700 is on trial, which is a new generation of turboprop aircraft and the future of Xinzhou series. Xinzhou 700 is designed for EU and U.S. markets and hopes it will be the mainstream type regional aircraft in the world market. The International subcontracting production of 2008 of XAIC planed to deliver 17 varieties 1409 parts, in the first half of 2008, it achieved 738 parts, accounting for 52.38 per cent of the total. The total amount of subcontracting is expected to be $220 million of 2008 The 2008 planning of XAIC is operating income 9 billion yuan; the first half of 2008 XAIC achieved 4.246 billion yuan, accounting for 47.18 per cent of its plan, up 314.2 per cent year-on-year; and recorded 165 million yuan operating profit, up 152.8 per cent year-on-year. Epitaxial growth is the main reason for the great growth of XAIC’s operating income and net profit in the mid of 2008. |
