Air France Industries looks to Asian expansion

Air France Industries looks to Asian expansion

Agence France-Presse, Singapore

Air France Industries, the aircraft maintenance wing of the French flag carrier, said Monday it was eying partnerships and acquisitions in Southeast Asia.

"We think we are in good shape to be a player in Asia," Bruno Delile, vice president of component support, told a media briefing on the eve of Asian Aerospace 2002 air show.

Delile would not disclose companies targeted by Air France Industries.

The company hoped the projected new business would offset expected losses following the Sept. 11 terrorist attacks in the United States, he said.

"We know that we are going to lose some customers due to the Sept. 11 crisis in the coming six months... we are going to lose some percentage of our business being compensated by new players coming in."

Delile said while new generation fleets had improved component reliability, they faced higher unit costs which would lead airlines to look for more technical and operational expertise.

Asia was "a fast moving, changing and challenging market," he said in outlining Air France Industries' expansion blueprint.

"We will start with partnerships, and finalize acquisitions once some steps have been achieved such as the complete understanding of each others strategies."

In the Asian region, Air France Industries already has tie ups with airlines in Vietnam, Thailand, South Korea and China.