Presentation is loading. Please wait.

Presentation is loading. Please wait.

“Opportunities in China’s Aero Industry.” Jamie Gwynn General Manager Italian Conference July 5-6, 2002 A Dezan Shira China Group Company.

Similar presentations


Presentation on theme: "“Opportunities in China’s Aero Industry.” Jamie Gwynn General Manager Italian Conference July 5-6, 2002 A Dezan Shira China Group Company."— Presentation transcript:

1 “Opportunities in China’s Aero Industry.” Jamie Gwynn General Manager Italian Conference July 5-6, 2002 A Dezan Shira China Group Company

2 China Logistics: Logistics consulting and market research in China’s mainland A specialized consulting firm in China offering supply chain consulting and logistical market research. 8 consultants with a variety of logistical backgrounds: telecom, automotive, fast moving consumer goods Part of the Dezan Shira China Group, China’s leading professional advisory firm 2 China Logistics

3 1.Local presence in the China market since offices with over 70 staff in the mainland 3.Practical solutions not classroom theory from our experienced staff 4.A reputation for project excellence from our diverse client base 3 Dezan Shira China Group: The Leading advisory organization for the China market China Logistics

4 4 Dezan Shira China Group: Affiliate companies China Logistics Dezan Shira & Associates Market Research China- Briefing China Logistics Structuring Network analysis DSMR Dezan Shira & Associates DSMR China-Briefing

5 Qualified appropriate factories for technology transfer assistance Some of our customers: 5 Identified and qualified distribution partners as well as provided specific market research Devised a complete market penetration strategy which allowed Perdue to market to China Product sourcing and market research for a large shoe retailer. Product sourcing and market research for glove retailer Examples Conducted market research on the cosmetic industry in China and assisted with the importation of goods

6 Discussion items History of China’s aero industry The current environment Approach to the marketplace Key contacts & resources China Logistics

7 History of China’s aero industry 1950 – 12 Aircraft for civilian use 1951 – 16 Aircraft factories (milt to civil) 1954 – First construction CJ-5 Trainer

8 History of China’s aero industry 1970’s production of various “Y” class modules. Y-12 Model (120 units exported to date) China Logistics

9 Discussion items History of China’s aero industry The current environment Approach to the marketplace Key contacts & resources China Logistics

10 Merging China’s Airlines In the 1980’s the CAAC allowed startup carriers to increase competition Status for local governments By the late 1990’s over 36 different airlines China Logistics

11 Merging China’s Airlines: The reason? Due to late 80’s policy result is overcapacity Irregular flight patterns Discounted tickets China Logistics

12 Merging China’s airlines: The vision: Orderly consolidation But also must: Let airlines run their own business –Profit allocation –Allow market demand to determine pricing –Minimize regulation of jet fuel and procurement China Logistics

13 Merging China’s Airlines: The obstacles Recent plane crashes CAAC has control over their 11 airlines representing 81% of the market, but 14 others China Logistics

14 Infrastructure Currently 142 airports CAAC has over 400 aircraft But the overall total fleet is less than that of British Airways China Logistics

15 Market Growth 1970’s & 80’s 17% per year Last year 10% Predicted to grow at 7% per year through 2005 Airbus & Boeing: “China will need over 1,500 aircraft by 2015.” China Logistics

16 Airport passenger traffic Year 2000 from CAAC Journal 2 March 2000

17 Airport cargo traffic

18 Discussion items History of China’s aero industry The current environment Approach to the marketplace Key contacts & resources China Logistics

19 Approach to the marketplace CAAC has further liberalized the industry allowing foreign companies to take a 49% share in Chinese airlines from a previous 35% share June 24, 2002 China Logistics

20 Foreign investment: Best sectors Airport design Technical construction Technical equipment (Radar systems, engines) Commercialization of space Avionics Consulting China Logistics

21 Joint ventures in China Lufthansa – JV at Shanghai’s Pudong airport Rolls Royce – Engine research & production Airbus – Production (100 deliveries) Bae Systems – Aircraft sales Dowty & Druck Ltd. – Various projects in Xi’an China Logistics

22 Projects underway Guangzhou, Changchun, Lhasa, Qingdao, Chongqing, Datong, Daqing China Logistics

23 Approval necessary for airport projects Central approval –State development and planning commission (SDPC) –CAAC Provincial/ local approval –Appropriate contacts –Consider a local Chinese partner China Logistics

24 Where to get funding? Central government Local government Commercial market China Logistics

25 Go West young man Strategy is a spoke and hub network –Beijing, Guangzhou, Shanghai –Chengdu, Xi’an, Wuhan, Kunming 19 Airports in the West are currently slotted for improvements China Logistics

26 Go West

27 SME Opportunities Subcontractor operations Trading through Hong Kong or other direct mainland contacts China Logistics

28 Freight forwarding Class A –Restricted industry –Foreign company cannot own more than 50% of the JV –Volume must exceed USD 50 Million per year –> 3 years experience with no incidents –> USD 1 Million in registered capital China Logistics

29 Freight forwarding Class B –Regional –Cannot handle international activities –Registered capital requirement of USD 60,000 China Logistics

30 Doing business in China: The requirements Must have more than a good product Know the market – Do your Due Diligence Proper budget planning (Trips back and forth,you and govt.) Long term Strategy Be aggressive ( don’t wait for tenders to go out) China Logistics

31 The first steps… Attend an air show in Zhuhai or Beijing Visits to the manufacturing basis Establish contacts with appropriate Beijing bodies CoC’s, Embassy’s & Consulates 3 rd party consultants Set up a representative office China Logistics

32 Discussion items History of China’s aero industry The current environment Approach to the marketplace Key contacts & resources China Logistics

33 Key Government Bodies Civil Aviation Authority of China (CAAC) - the overall governing body China Aviation Industry Corporations – Deals mainly with the manufacturing sectors & is divided into 2 components –AVIC I for larger aircrafts –AVIC II for smaller aircrafts China National Aero Technology Import and Export Corporation (CATIC) – main procurement organization China Aviation Supplies Import & Export Corporation (CASC) – A trading company of aviation products Ministry of Foreign Trade and Economic Cooperation (MOFTEC) – Regulates foreign business licensing and business structures

34 Dezan Shira Group Contacts Jamie Gwynn General Manager, DSMR/ China Logistics Ltd. Tel: Fax: Web: Alberto General Manager, Dezan Shira & Associates. Tel: Fax: Web:

35 Credits –British Embassy – Beijing –China Hand –Local resources –CAAC information database

36 Cold Supply Chain Logistics in China Jamie Gwynn General Manager Thanks for your Attention A Dezan Shira China Group Company


Download ppt "“Opportunities in China’s Aero Industry.” Jamie Gwynn General Manager Italian Conference July 5-6, 2002 A Dezan Shira China Group Company."

Similar presentations


Ads by Google