Sky-high hopes for Chinese aviation
Pakistani-American entrepreneur hopeful about China’s aviation market
Upon entering the office of Aventure, an aviation parts supplier based in Peachtree City, in the southern US state of Georgia, people are immediately attracted to the aircraft models of different types displayed in the center of the reception hall.
That is the epitome of Aventure’s line business, which supplies aviation parts and components, repair management for commercial airlines, regional operators and military air forces, as well as maintenance, repair and overhaul facilities worldwide.
After 17 years of rapid development, the company is now pinning high hopes on the Chinese market. “We are focusing on our efforts toward China,” Zaheer Faruqi, Aventure’s founder and president, said in a recent interview with the Xinhua News Agency.
Eyes on the East
Faruqi said although Aventure just started working with Chinese companies several years ago, including Boeing Shanghai Aviation Service and some Chinese airlines, he “can see a growth path” as China’s airline industry booms.
The Civil Aviation Administration of China has estimated that in 2017, a total of 549 million air passengers were transported in China, up 12.6 percent from 2016.
“As long as people are using air transportation, there’s always going to be a demand for an airplane, and when you have a demand for airplanes, then you have a demand for aircraft spare parts,” Faruqi explained.
“Airbus and Boeing have a huge prediction of new aircraft orders, so there will be a demand, especially from China,” he said.
Randy Tinseth, Boeing’s vice president for commercial marketing, told a news briefing that China looks set to overtake the US as the world’s biggest domestic air travel market in 10-15 years.
Boeing forecast that Chinese airlines are likely to buy more than 7,000 planes worth $1.1 trillion over the next 20 years, as they grow their fleets to meet robust demand for domestic and international travel.
As an aviation aftermarket supplier, Aventure acquires aircraft parts through basically dismantling retired airplanes, which the company carefully selects and buys based on its technical records.
From each plane, no more than 2,000 parts, ranging from seats to starter motors, are removed, then they are refurbished, overhauled or repaired by authorized processors and then eventually made available to the airline industry.
It is a common practice worldwide to use both brand-new and refurbished parts to maintain an airplane, while being regulated by aviation authorities, according to Faruqi.
He also said that many airlines only want new parts that are actually much more expensive and sometimes difficult to be acquired, which then forces an airplane pending maintenance to be grounded for a number of weeks or so.
Using refurbished parts, which are immediately available in most cases, is a cost-effective solution, with those parts being handled by processors and shops approved by the US Federal Aviation Administration and having to meet all the manufacturer’s requirements, said Faruqi, who has been working in the aviation industry since the start of his career.
‘Tariffs hurt’
Close to 70 percent of Aventure’s business comes from abroad. Besides China, it has built business relationships with countries in South and North America, Europe, the Middle East and Africa, and has opened offices in Canada, Turkey, the United Arab Emirates and Latvia.
Although the company’s exports haven’t been directly affected by the US’ trade disputes with other countries, Faruqi said he hopes that the spats can be solved soon, as he shares the same concerns as other American businesses.
“Tariffs may not go away easily and tariffs hurt business,” said Faruqi, adding that imposing duties “is unnecessarily burdening the customers and burdening us as an American company.”
The Trump administration has used Section 232 to unilaterally impose high tariffs on steel and aluminum imports on the grounds of national security, drawing strong opposition from the domestic business community and US trading partners.
Faruqi also said that his company plans to attend an air show in Zhuhai, a city on the southern coast of South China’s Guangdong Province, slated for November this year, with an eye on strengthening its business relationship with Chinese clients.
“We are very eager to do business with them,” he said.
Besides the Chinese market, Aventure is also looking closely at the China-proposed Belt and Road (B&R) initiative for more business opportunities in other countries benefiting from the modern version of the ancient Silk Road.
“No matter where B&R goes, that part of the world is going to prosper,” Faruqi stressed.
“That means there will be more trade opportunities and new airports around the areas,” which will also encourage local products to be exported, said the entrepreneur, adding that that’s where the aviation industry would come into play and involve Aventure.
“We see that there will be opportunities and development in local markets,” Faruqi said. “We want to be a part of it.”