News | September 7, 2007

Airliance Moves Forward With China's CASGC And CAIB

AirLiance Materials announced that it co-signed a letter of intent recently with China Aviation Supplies Import and Export Group Corporation (CASGC), and the China Aviation Industrial Base (CAIB). According to all three companies, the agreement has great potential of affecting the way China supports its commercial operators with spare and replacement parts.

The letter outlines the basic approach and responsibilities to be taken by each company for the establishment of a program to support the CASGC Aviation Logistics Support Center (based in Xi'an, China) for expanded material supply capability in selected key territories of China.

According to the letter, the three parties have agreed to work exclusively together to evaluate and, if feasible, develop a joint program with the objective to establish expanded new and surplus commercial aviation material support capability for the CASGC Aviation Logistic Support Center in Xi'an China for airlines in the region. Specifically, the center will concentrate on the supply of high quality aftermarket materials with joint approved traceability, e-distribution of surplus material from Chinese airlines to the global aviation marketplace, and the lowering the overall materials costs for targeted Chinese airlines. The center essentially follows the services strategy developed by AirLiance to re-define the concept of parts management. Like AirLiance, the Center will also offer material sales, exchanging and pooling, parts kitting, repair management, and consignment programs.

It is noted in the letter that AirLiance will provide support and advice to CASGC, CAIB, Chinese Airlines and other Chinese entities to develop the Xi'an project. Responsibilities could include stocking, logistics support, materials management, new/surplus materials supply and overall management and support of the center.

CASGC and CAIB will evaluate/develop investment requirements for the facility in Xi'an. CASGC will also provide manpower resources to be trained by the Western partner in the operation of the Center and to grow the aviation support business in China.

CASGC will focus as the in-country liaison for the initiative and coordinate with CAIB for the site, land in Xi'an, facility construction, and tax incentives. They will also facilitate developing CAAC tag sources for aftermarket materials being supplied to the center.

About CASGC
CASGC, formerly China Aviation Supplies Import and Export Corporation (CASC), is a comprehensive service provider for the Chinese aviation industry. The business range of CASGC covers import and export, lease, maintenance and consignment of aircraft, engines, aviation parts, ground support equipment, specialist vehicles, and other related business. Since its establishment in 2002, CASGC has signed commitments for over 500 aircraft for Chinese airlines.

About CAIB
The Xi'an Yanliang National Aviation Hi-Tech Industrial Base, commonly known as The China Aviation Industrial Base (CAIB), is a district established with the approval and support of the Chinese government to provide highest quality services to the international aerospace and aviation industry. The district focuses on the development of civil aviation, whole aircraft manufacturing, parts and component fabrication, new aviation materials, maintenance, repair and overhaul, airborne equipment, education and training.

About AirLiance Materials
Created for airlines by airlines, AirLiance Materials is the leading supplier of replacement parts to the global air transport industry. Headquartered in the new state-of-the-art facility near the grounds of O'Hare International Airport in Chicago, the company offers its products and services through an international network of offices around the world and their e-commerce site www.airliance.com. AirLiance Materials offers a wide range of supply chain related aircraft products and services for its customer airlines and maintenance repair organizations. These products and services include material sales, sourcing, repair management services, parts exchanges, parts kitting, AOG and Just-In-Time services.

SOURCE: AirLiance Materials