Air China agrees aircraft parts JV with GA Telesis

Chinese airline Air China Ltd (HKG:0753) has set up a domestic aircraft spare parts supplying joint venture together with US airplane, engine and parts broker GA Telesis LLC, the parties announced.

The agreement to create GA Telesis China Ltd (GATC) was signed after nearly a year of planning and following the approval of both companies top managers, they said.

The JV will be the first such company in China and will do business across the entire Asian market, with focus on providing used-serviceable components. The new entity will be also acting as the country’s first integrated asset manager with access to aircraft disassembly capabilities.

The venture will establish a facility that would help expedite processing and shipping. No further details were given about the structure of the JV and the investments in it.

Air China sees the deal as a good way to help it manage its component replacement costs and long-term fleet planning, president Cai Jianjiang said in a comment, adding that Asia is the largest growth market in the world for commercial aviation seen to reach two-fold demand for new aircraft over the next 20 years.

In his own comment, Abdol Moabery, president and CEO of GA Telesis, said the venture, combining Air China’s vast operational and local expertise with that of GA Telesis, will create an “unmatched” offering to the Asian commercial aviation market.

GA Telesis, sells, distributes and maintains airplanes, engines and parts from its facilities in the US, Canada and the UK. Its customers include the world’s largest airlines and maintenance organisations.

Air China is China’s exclusive national flag carrier and a member of the Star Alliance.