European plane maker Airbus plans to set up a joint venture with AVIC Ⅱto make aircraft components, hoping to gain a larger share in the world’s fastest growing aircraft market.

China’s passenger traffic is expected to grow fivefold and passenger aircraft will triple to around 4,000 on the mainland. Besides, freighter traffic is projected to grow six fold, creating a demand for 130 new freighters over the next 20 years, compared with 45 in 2007. Recognizing the upcoming boom for the aviation sector and trying to gain an edge over its competitors, Airbus has agreed to assemble its single-aisle model Airbus 320 in China and expects to use the joint venture to produce composite material parts for its Airbus A350 model in partnership with AVIC Ⅱ. It’s also trying to sell more of its super jumbo A 380 in China as it expects carriers to opt for much larger aircraft in the future for flights between mega cities.

“Our aim is to reach 50% (of the market share) in 2011,” said John Leahy, chief operating officer, customers of Airbus. “In the next 20 years, the greatest demand for passenger aircraft will come from China, second only to the US.”

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Airbus, China Business, joint venture