Boeing, Avic Ink Deal on Interior Supplies

 - November 13, 2012, 11:21 AM
China's AVIC already makes parts for the Boeing 747-8, among other models. (Photo: Boeing)

Boeing has agreed to help Aviation Industry Corporation of China (Avic) to expand the state-owned company’s ability to supply interiors commodities such as passenger seats, galleys, lavatories and in-flight entertainment systems for commercial airplanes. Geng Ruguang, executive vice president of Avic, and Stan Deal, vice president and general manager of Boeing Commercial Airplanes Supply Chain Management and Operations, signed a memorandum of understanding for the interior payload initiative on November 13 at Airshow China 2012 in Zhuhai.

“This cooperation will enhance Avic as a competitive supplier of world class airplane interior payload products, as well as help Boeing deliver more competitive products to its customers,” said Geng. “This expands the fields of cooperation for both companies, which will further strengthen and deepen our strategic partnership.”

A partner and supplier to Boeing for more than 20 years, Avic now makes parts for the 737NG, 747-8 and 787. As the largest non-Chinese customer of China’s aviation industry, Boeing has bought more than $1.5 billion in hardware and services from China since the 1980s and expects to double its annual procurement “in [the] coming years.” Some 6,000 Boeing airplanes fly throughout the world with parts and assemblies built in China.

“For 40 years, Boeing has been deeply engaged in China to support the long-term development of China’s commercial aviation industry,” said Marc Allen, president of Boeing China. “We are pleased to play a critical role in the continued development of China’s aerospace industry while taking another positive step forward in expanding our relationship with Avic and other Chinese industry stakeholders.”

The Civil Aviation Administration of China has forecast that passenger traffic in China will reach 300 million the year and 1.5 billion in 2030. Boeing forecasts that Chinese airlines will need to buy 5,260 new airplanes by 2031 to meet the projected demand.