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Airbus bets on SA for aviation boost

Toulouse – By 2015 China will overtake the US to be the world’s biggest aviation market in terms of the number of aircraft they are going to buy, according to Simon Ward, vice-president of international cooperation at Airbus.

South Africa and Ethiopia are the two African countries among the 15 countries in the world identified by Airbus as being of future strategic value to the aviation industry, Ward told Fin24.

“While at the moment there really are only two big global aircraft manufacturers in the world – Airbus and Boeing – we foresee that in the next 10 to 15 years there will be one or even two new global manufacturers entering the very competitive global manufacturing market.”

Ward put the role South Africa does and can play in the aviation industry in context.

“South Africa is a long way away from the hub of the aerospace industry, which is the United States. We at Airbus must, therefore, think carefully about what we do in South Africa as material must be shipped back and forth. Logistics are, therefore, a big driver regarding SA,” said Ward.

SA could become a competitive niche market

He warned that South Africa cannot rely on just being a low cost manufacturer of aircraft components. The country must try to develop niche markets.

“Airbus deals with SA departments like trade and industry and science and technology and we want to be a real business partner for the country,” said Ward.

“SA projects are currently somewhere between pipe dreams and a commercial reality.”

Ward said he has confidence in SA’s ability to develop its aviation industry manufacturing to become more competitive and innovative.

“By 2020 we would most likely have doubled our work in SA in terms of the volume we source from there – from the current about $40m per year to at least about $80m per year,” said Ward.

Titanium opportunities just going to waste 

SA is, for instance, one of the biggest producers of titanium powder in the world. But unfortunately, said Ward, the country mostly exports the titanium powder instead of adding value within the country itself. Titanium is used in many aircraft components.

“We are working with SA manufacturers to build on these niches in aviation manufacturing, especially by using 3D printing,” said Ward. “The aim is to have the entire value chain of the manufacturing stay in SA.”

He said Airbus’ cooperation with SA’s aviation manufacturing industry helps to create jobs, develop high skills and support black economic development.

“We want to set SA up to be a pioneer for aerospace development in Africa,” said Ward. “SA must not just rely on low labour costs as a factor for competitiveness, though, but must also develop technology.”

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