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- Vice President / Regional General
Manager, Asia Pacific
- Co‐Chair of the US‐China Aviation
Cooperation Program (ACP) MAC
- Board Member of the 2 China JVs
Doing Business with Chinese Doing Business with Chinese Aerospace - - PowerPoint PPT Presentation
Doing Business with Chinese Doing Business with Chinese Aerospace - - PowerPoint PPT Presentation
Doing Business with Chinese Doing Business with Chinese Aerospace Companies Aerospace Companies 1 Current Role Vice President / Regional General Manager, Asia Pacific Co Chair of the US China Aviation Cooperation Program (ACP) MAC
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“China one the most difficult countries to do business with”
ex‐Boeing President China
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Source: Boeing 20‐year CMO
China
Passenger traffic within Asia #1 in the world
2014 Air Traffic Added Traffic 2015‐2034 Annual Growth %
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Asia Pacific North America Europe Latin America Middle‐East & Africa CIS RPKs (Revenue Passenger Kilometers), billions 6.2% 2.4% 3.3% 6.6% 6.2% 4.3% 6.2%
3.3X
3.4X
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2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Asia Pacific North America Europe Latin America Middle‐East & Africa CIS Fleet Size (No. of Pax Aircraft)
China
Asia fleet size will overtake N. America by 2017
2014 Fleet Size Added Fleet 2015‐2034
Source: Boeing 20‐year CMO
2034 Fleet Size
7,560 3,620 5,130 1,720 16,180 9,350 7,330
2.8X
3.1X
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“….Asia‐Pacific market will grow the fastest in the future, as the economic growth here is the fastest in the world”
American Airlines CEO Doug Parker
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Many indigenous aircraft programs…
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Auto industry JVs are very successful in China
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… and many OEM JVs in China
Electrical Power Sys C919 Xi’an UTC‐Avic EM Fuel & Hydraulic Sys C919 Nanjing Parker‐Avic NEIAS Flight Control Sys C919 Xi’an Parker‐Avic FACRI Flight Control Electronics C919 Xi’an Honeywell‐Avic FACRI Environmental Control Sys Nanjing Honeywell‐Avic NEIAS Avionics C919 Shanghai GE Aviation‐Avic CARERI Tubing C919 Shanghai Eaton‐Comac SAMC Landing Gear C919 Changsha Liebherr‐Avic Airfoil Manufacturing Xi’an P&W‐Avic Engine XAE Component MRO Xiamen Hamilton Sundstrand‐ Avic Shaanxi Aero Electric Legacy Final Assembly Harbin Embraer‐Avic HAFEI Helicopter Sub‐/Assembly Harbin Eurocopter‐Avic HAFEI A320 Final Assembly Tianjin Airbus‐Avic APU MRO Xiamen Honeywell‐Taeco CFM56 Maintenance Chengdu Safran‐Air China Engine MRO Shanghai P&W‐China Eastern Airlines Engine components Zhuzhou P&W‐AVIC Engine accessories Chengdu P&W‐AVIC‐Chengdu Engine Co. Vapor Cycle Machines Nanjing UTC‐Avic NEIAS Composite Manufacturing Zhenjiang FACC‐Avic Wheels & Brakes C919 Changsha Honeywell‐Hunan Boyun New Materials‐Changsha Xinhang Wheel & Brake Engine Sub‐systems MRO Xiamen UTC‐Taeco Composite Manufacturing Tianjin Boeing‐Avic Helicopters Final Assembly Shanghai Sikorsky‐Changhe Aircraft Industries Corp‐ Shanghai Xinsheng Aviation Industry Ind. & Dev. Co.
- Com. & Nav. Solutions C919
Chengdu Rockwell Collins‐CETCA Flight Simulation Tianjin Rockwell Collins‐Avic Bluesky Surveillance Products C919 Wuxi Rockwell Collins‐Avic LETRI Engine Components Zhuhai Snecma‐Avic SAIC EWIS Manufacturing C919 Shanghai Safran‐COMAC Airfoil Manufacturing Guiyang Safran‐Xinyi Nacelle Final Assembly C919 Xi’an Aircelle‐Avic XAIC Aircraft MRO Shanghai Boeing‐China Eastern Airlines‐Shanghai Airport Authority Aircraft Final Assembly Zhuhai Cessna‐Avic CAIGA Aircraft Final Assembly Shijiazhuang Cessna‐Avic CAIGA Aircraft Final Assembly Binzhou Dagao Diamond Aircraft‐ Shandong Bin Ao Aircraft Industries In‐Flight Entertainment C919 Chengdu Thales‐CETCA Existing In Work Just Sold
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IP concerns IT Security concerns Lack of transparency Language, Culture, Distance Partner’s lack of experience U.S. jobs concerns Unfair local competition Unfamiliar territory, e.g. laws Local costs increase Export compliance Partner’s poor management Our hands are full Market & Opportunities
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“The difference between Try and Triumph is the Umph”
Anoynmous
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Asia Market
Hit hard at target…
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COMAC ARJ21 Seats: 85
Launch: 2003
Orders: 315 Status: EIS 2015 COMAC C919 Seats: 168
Launch: 2009
Orders: 507 Status: Roll‐Out 2015 AVIC Aircraft MA700 Seats: 78
Launch: 2014
Status: JDP COMAC LRWB Seats: 300
Launch: 2015Q4
Status: RFI
Parker Content:
- Fuel System
- Flight Control Actuation
System
- Hydraulic System
- Swivel Joint, Fuel QD
Parker Content:
- Fuel System
- Flight Control Actuation System
- Hydraulic System
- Inerting System
- Integrated Modular
Cabinet/Electronics
- Fuel QD, LG Hoses
Parker Content:
- Flight Control Actuation
System
- Hydraulic System
- Fittings & Hoses (potential)
Parker Content (Potential):
- Fuel System
- Flight Control Actuation
System
- Hydraulic System
- Inerting System
- Fittings & Hoses
New
Parker awarded significant business… … only Gold supplier for 9 consecutive years
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Strong Gov’t (Understanding & Patience) Bridge the Gap Relationship Based (Not B&W) Stair‐Step Progress (Nothing is Impossible) Sense of Fairness (Give & Take)
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“It is not an enormous gap but a gap nonetheless… What’s wrong with a bridge? Have we not done one before”
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