France Aerospace Newsletter - October Issue.
French news outlets have recently highlighted the importance of the Chinese market for Airbus with more Airbus aircrafts now flying in China than in the United States. Airbus delivers 25% of all new aircrafts to China and Airbus Helicopters has 20% growth in China versus 2% for the rest of the world. In an interview to French newspaper Les Echos, Fabrice Brégier announced that Airbus is considering expanding the A320 assembly line in Tianjin as well as eventually have all cabin equipment operations for China-bound A330NEOs and A350s done on-site.
- LATECOERE ON THE LOOKOUT FOR ACQUISITIONS
Latecoere CEO Yannick Assouad said that Latecoere is on the lookout for acquisitions so it can win larger contracts from leading original equipment manufacturers. Assouad said Latecoere, which currently supplies fuselage and doors to Airbus and Boeing, has to demonstrate it has the capacity to generate sufficient cash flow to finance new developments in order to secure future contracts. Assouad specified the type of company they would be targeting: the company "must be present in the US, offer products complementary to Latecoere's own products, and have capabilities in composite materials".
- OEM VOICE CONCERN ABOUT UTC/ROCKWELL DEAL
Airbus and Boeing have voiced concerns about the proposed UTC acquisition of Rockwell Collins for $23 billion. Boeing has warned it would take action to protect itself if it saw the merger as harming its business. Both OEMs will have a say on the merger’s fate because of the significant influence they have throughout their supply chains. UTC and Rockwell Collins are involved in the planemakers’ single-aisle platforms which are in the midst of historical production ramp ups and generate their largest source of profit.
- EASYJET TO OFFER LONGHAUL FLIGHTS
EasyJet has announced that the company will provide feeder traffic to long-haul carriers for the first time.The airline has formed a partnership with Norwegian and WestJet, offering flights to North and South America and the Far East from Gatwick airport. EasyJet has also signed a partnership agreement with Paris-based La Compagnie and Corsair airlines to further extend easyJet’s worldwide offering. The low-cost carrier said that the new partners “will now have access to one of the biggest travel websites in Europe, easyjet.com”.
- ATR HAS STRONG FIRST HALF
After a disappointing 2016 in which ATR picked up only 36 orders, the company recovered strongly this year with 89 orders in the first half of 2017, including 75 for the 72-600 and 14 for the smaller 42-600. ATR CEO Christian Scherer recently announced that ATR, jointly owned by Airbus and Leonardo, has a backlog of 250 aircraft and holds a 75% share of the regional turboprop market.
Like other OEMs, ATR is also expanding support services for its products. Forecast puts the total value of ATR 72 maintenance at $1.12 billion in 2017 and predicts that it will rise by roughly 10% each year, to reach $1.64 billion in 2021.
FRANCE CORPORATE APPOINTMENTS
Latecoere appointed Nathalie STUBLER and Chantal GENERMONT to its Board of Directors. Nathalie STUBLER is the CEO of French airline Transavia and worked as Director of Strategy for Air France-KLM and Chief of Staff to the Group CEO until January 2016.
Chantal GENERMONT currently leads Group EDF's digital department. Prior to that she practiced law in New York and worked on merger & acquisitions for the Groupe Casino and Group EDF.
Aerospace Valley nominated Yann BARBAUX as their new president, replacing Agnès Paillard. Yann BARBAUX had been Airbus Innovation Director since 2013.
FRANCE AEROSPACE BUSINESS OPPORTUNITIES
Air France CEO Franck Terner recently announced that the company will be refurbishing its fleet of A330 (starting in 2018), Boeing 777s and A380s (starting in 2020) for a total investment of 150 to 200 million euro. The Embassy team will be engaging with Air France senior staff to better understand the company’s needs and discuss potential business opportunities for UK suppliers.
- PARIS ASD DAYS – 11 & 12 OCT.
The aerospace team at the British Embassy Paris will be attending the 7th edition of ASD Days dedicated to aeronautics, space, defence and drone industries. We will be meeting key primes including Airbus Development, Airbus Helicopters, Dassault Aviation, Safran Electrical & Power, Safran Landing Systems among others. The team can act on your behalf and represent your company should you be interested in connecting with some of these industry primes.
- ADS TOULOUSE ANNUAL EVENT – 12 OCT.
The aerospace team in Paris and Bordeaux are working closely with ADS Toulouse ahead of their annual event held on 12th October. While in Toulouse, the team will be engaging with French industry primes located in the region (i.e. Daher and Thales Alenia Space) and is happy to act on your behalf to identify potential commercial opportunities.
For additional information please contact:
Charly Gordon (email@example.com) – British Embassy Paris
Catherine Cestari (firstname.lastname@example.org) – British Consulate Bordeaux