Page 100 - AA 2018_09

Malaysian made?

ASIA WATCH
TOM BALLANTYNE
Airbus has agreed to study an A320 final assembly line in Malaysia

he lure of Asia continues to result of some crafty manoeuvring by commercial maintenance, repair
attract serious attention from AirAsia group chief executive Tony and overhaul (MRO) centre for
planemakers Boeing and Airbus Fernandes during negotiations for a aircraft, engines and components at
Tas they go all-out to show the new aircraft order with the European the aviation hub. In its commitment
region they are not only interested planemaker in the run-up to the letter dated July 15 to AirAsia, Airbus
in commercial jet sales but keen to recent Farnborough Airshow. It did said the company would conduct the
become an integral part of the local the trick as Fernandes placed an feasibility study on the project within
aerospace industry. order for 34 A330neo widebodies for 18 months. The study will also cover
Airbus A320s are already rolling off subsidiary long-haul, low-cost AirAsia a detailed technical, marketing and
a final assembly line (FAL) in Tianjin, X worth around US$10 billion at list finance analysis to assess the long-
China, where Airbus also has an prices. It’s hardly surprising Airbus term economic viability of the project.
A330 completion and delivery centre. at least bowed to pressure to look at Various options will be considered
‘We used Boeing, meanwhile, is set to begin 737 a new FAL in Malaysia since AirAsia such as MRO, a training centre, a data
deliveries to local carriers from its own
centre, possible industrial cooperation,
is its biggest A330 customer, not to
our orders to new completion and delivery centre at mention the hundreds of A320s it also and Airbus supplier implantation.
operates.
Zhoushan near Shanghai in the near
Fernandes said among the basic
Negri Sembilan State investment,
interest them future. It’s not that they are actually industrialisation, entrepreneurship, matters raised by Airbus during their
meeting were land area and skilled
building the planes at any of these
to invest in facilities. In the A320’s case all the education and human capital workers.
major sub-assemblies are shipped in
committee chairman Mohamad Malek
“We’d talk to Airbus. We used our
from Europe and elsewhere and, like a confirmed the FAL study was agreed orders to interest them to invest in
giant Meccano set, slotted together in upon during talks between AirAsia Malaysia.”
Malaysia.’
China. In the 737’s and A330’s cases, and Airbus. The most important thing for
TONY FERNANDES the aircraft are flown to China ‘green’ “The state government is deeply Airbus is having the right people.
for final fitout and delivery. grateful to Tan Sri Tony Fernandes in So, this a wonderful opportunity for
Nevertheless, it all represents sparking Airbus’s interest to consider Malaysia to bring a lot of high-skilled
heavy investment. In Boeing’s case opening the FAL facility at the jobs into Malaysia.”
that involved a US$33 million, 60 per proposed aviation hub to be developed More FAL facilities in Asia would
cent stake in a joint venture with the in Labu near here. If Airbus agrees, seem to make sense for both Airbus
Commercial Aircraft Corporation of this will be Airbus’s fifth location for and Boeing. In its latest forecasts
China (COMAC). FAL facilities, in addition to Toulouse, Airbus sees a need for some 37,400
There may be more to come. It France; Hamburg, Germany; new passenger and dedicated freighter
has been disclosed Airbus has agreed Alabama, US; and Tianjin, China.” aircraft at a value of US$5.8 trillion
in principle to conduct a feasibility He said a special committee, over the next 20 years. Boeing projects
study for an investment to build a final comprising representatives from the that the world fleet of jet planes will
assembly line (FAL) in Malaysia, at state government and AirAsia had double over the next two decades,
Labu, Negri Sembilan on the country’s been set up to conduct due diligence from about 24,000 commercial
west coast, where plans are underway on the aviation hub development. airliners flying last year to more than
A320s on the final assembly to develop a major aerospace centre. Besides the FAL facility, the state 48,500 in 2037, with the value of new
line at Tianjin, China. airbus Apparently, the development is the government hoped to create a jets sold around US$6 trillion. Both
agree around 40 per cent of these
aircraft will be delivered in Asia.
While China, given its airline sector
growth, is clearly a primary focus it
shouldn’t be forgotten that airlines are
also expanding at an unprecedented
rate in South-East Asia and India.
Airbus has said that while its FAL
in Tianjin was developed to deliver
aircraft to Chinese carriers it will also
produce aircraft for other regional
players.
A FAL in Malaysia, which
essentially sits at the centre of the
South-East Asia region, as well as
being relatively close to India, would
be a useful addition to the European
manufacturer’s industrial network.
It will certainly be something rival
Boeing will be watching closely.

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