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.