Avolon signs $11.5 billion deal for 100 Airbus planes

[mik3bravo]

Interesting how Asian FDI used in European aircraft leasing business. A positive and valuable global collaboration with Europe and China, or economic strategic risk to Europe?

HNA, owned by Chinese company Bohai, holds 70% of Avolon, with Japanese firm Orix Aviation Systems owning the remainder.

Article (https://www.rte.ie/news/business/2018/1207/1015776-avolon-airbus-order/)

Some background:2016

In January 2016, the HNA Group via its Bohai Leasing affiliate, purchased Irish aircraft leasing company Avolon (https://en.m.wikipedia.org/wiki/Avolon). When combined with HNA's existing aircraft leasing business, the new entity with over 500 aircraft will become the world's fourth largest aircraft leasing business by asset value.[64] (https://en.m.wikipedia.org/wiki/HNA_Group#cite_note-64)

Souurce: (http://en.m.wikipedia.org/wiki/HNA_Group)Wiki (http://en.m.wikipedia.org/wiki/HNA_Group)

[Asturias56]

There is absolutely no evidence that Russia or China (or even Japan) can develop and build a COMMERCIAL airliner - God knows they've tried. Only State entities buy them and then they do it reluctantly in small numbers.

Airbus and Boeing have the markets tied up for the next 40 years. Their only risk is that due to something like a catastrophic oil price rise, is that a lot of their orders are cancelled - but then they can always drop back to 1990's production rates (admittedly at a vast cost in redundancies - again).

[CargoOne]

Chinese made C919 passenger planes have completed hundreds of test flight. Russian made passengers planes are also sold worldwide.

After 5 years, there will be less business for Boeing and Airbus. China will buy locally made wide body planes and Russia will export wide body passenger planes

In case with Russia/USSR it is not a question of ability to build an aircraft, they have done it full range from 2-seater piston to widebody longhaul airliner. But no one really buys it, why would that change in 5 years time?

[The Ancient Geek]

Its not going to happen unless they spend loadsamoney setting up a global support network.
Airlines buy from the big two because when something breaks there will always be an engineer with the correct parts available somewhere nearby to get the aircraft back in the air..

[racedo]

Its not going to happen unless they spend loadsamoney setting up a global support network.
Airlines buy from the big two because when something breaks there will always be an engineer with the correct parts available somewhere nearby to get the aircraft back in the air..

In the scheme of things the spend on a Global support network is imminently possible. Looking at what is occuring on trade realtions between countries then I could see it realistically happening.

China and India are the biggest growth markets for Aviation, they also the countrys looking to wean themselves off using the dollar in trade. It is all linked.

[Flying Clog]

Yup, and they make junk aircraft with little or no engineering support. Move along.

[oldchina]

When my plane goes AOG in South Ameristan it's not the moment to discover that Support has just reached for the second bottle of vodka or has been replaced by the advertiser nephew of an influential Party member.

[Asturias56]

But if it's say... Nice??? or the Bahamas......... I can remember a small commercial operation (not an airline) that noticed the AOG incidents seemed to be in attractive spots

A quiet word had to passed to one and all.........

[GlobalNav]

Reminds me of the long proven way to make a small fortune in the aviation business. Start with a large fortune.

[ExDubai]

In case with Russia/USSR it is not a question of ability to build an aircraft, they have done it full range from 2-seater piston to widebody longhaul airliner. But no one really buys it, why would that change in 5 years time?
They are able to develop and build an aircraft. But nobody likes their definition of service. tbh. the SSJ isnt that bad, but the service sucks.

[racedo]

They are able to develop and build an aircraft. But nobody likes their definition of service. tbh. the SSJ isnt that bad, but the service sucks.

Throw money at something and service gets better.

[The Ancient Geek]

A support network is VERY expensive. Boeing and Airbus can spread the cost over a large active fleet.
When you only have a few dozen aircraft in service the costs are prohibitive. Even keeping a comprehensive spares inventory at the factory ready to be flown out to an aircraft on the ground is horribly expensive and it could take days to deliver a part to an AOG in many parts of the world.

[racedo]

A support network is VERY expensive. Boeing and Airbus can spread the cost over a large active fleet.
When you only have a few dozen aircraft in service the costs are prohibitive. Even keeping a comprehensive spares inventory at the factory ready to be flown out to an aircraft on the ground is horribly expensive and it could take days to deliver a part to an AOG in many parts of the world.

But you have a couple of regional distribution centres where you hold parts that can get to an airport in hours. In relation to America you locate in Florida. Asia somewhere like Singapore, China from within China, Europe from Russia / Spain and Mid East from Egypt / Spain.

[Asturias56]

It's never worked for Japan, Russia or China yet and Brazil struggled for quite a while................

Interesting that when there is a UNIQUE solution - such as heavy lift - Russian/Ukrainian aircraft sell - if only they were still in production......

ps and helicopters of course.....