Accel aims for bigger share of nation's full flight simulator market | investinchina.chinadaily.com.cn

Accel aims for bigger share of nation's full flight simulator market

By YANG CHENG in Tianjin China Daily Updated: 2022-03-18
A pilot experiences a Boeing 737 MAX full flight simulator produced by Accel (Tianjin) Flight Simulation Co Ltd in Tianjin in March. [Photo provided to China Daily]

A Tianjin-based full flight simulator producer aims to grab a bigger market share in China, in an industry that has been dominated by Western companies, a senior company executive said.

Accel (Tianjin) Flight Simulation Co Ltd expects to seize 15 percent of the domestic market share as the first sales target of the company's market breakthrough efforts, Ding Yuanyuan, Accel's general manager and CTO, told China Daily in an interview.

Currently, China has a total of 215 units of FFS, of which 186 were produced by Canadian Aviation Electronics Inc and L3Harris Technologies from the United States. Six others were produced by domestic market players, including three by Accel.

Last year, the company announced its completion of the Airbus A320 neo and the Boeing 737 MAX FFS, making it the first and the only company in China to acquire an extensive full life cycle experience on the research, development and engineering of the major narrow-body level D FFS-both for the Airbus A320 and Boeing 737 MAX, said CAAC News, a newspaper under the China Aviation Administration.

A company under Shanghai Juneyao Group Co Ltd said it had also completed its first 737 MAX FFS, but the simulator is only manufactured for Juneyao Airlines.

"Since Accel developed and manufactured China's first FFS in 2017, Accel has completed the R&D, manufacturing, and delivery of mainstream narrow-body simulator models for Airbus and Boeing in only a few years. We have full confidence in the stronger market presence after our 'made in China' 737 NG passed level D certification in 2017, Airbus A320 neo passed level D certification in 2020, and the 737 MAX FFS passed level D certification in 2021," he said.

The FFS level D is the highest level of technology in the field of simulation and the level D should gain qualification issued by the CAAC under current regulations in China.

Statistics from aviation magazine Flight Global indicated that of the 1,550 FFSs installed worldwide, 59 percent were manufactured by CAE and 17 percent by L3Harris.

Ding projects that in China, the annual market demand for FFSs stands between 16-20 units annually in the next five years, equivalent to 1 billion yuan ($157.2 million) in terms of overall market value.

In addition, the country's market demand accounts for one-fifth of the world's total, while its market demand is rising thanks to the country's strong economic growth.

Ding's forecast coincided with the Boeing Commercial Market Outlook 2020-2039, which is upbeat on the Chinese market. Total FFS demand will top 340 units in the period, involving a total investment of 28 billion yuan.

In light of the strong market demand, the Accel general manager noted he is fully aware of the challenges ahead.

"For one, the data pack is owned by Boeing and Airbus. For the other, as a high-tech industry with a long R&D cycle, we are yet still in its fledging period."

Accel was set up by US-based Collins Aerospace and Beijing Bluesky Aviation Technology Co in 2014, with an initial investment of 390 million yuan. After Bluesky left in 2015, Haite Hi-tech, a privately owned limited company, joined up.

Now Accel is trying to leverage its strong technical capabilities built up from the full flight simulator life cycle development experience to tap into simulation and training solutions for new industry segments.

"Eyeing the challenges, we have mapped out strategies to make profits from the future air mobility segment as well as the electric vertical take-off and landing-known as the eVTOL vehicle segment, two professional segmented fields in the market," he said. "The moves are expected to cushion its losses since its initial years."

It has recently inked agreements with leading domestic eVTOL producers Anhui Huamin Avionics System Co and Shanghai Volant, respectively, earlier this month.

"Accel's technological competence is consolidating our confidence to join hands," said Yang Liangyong, general manager of Anhui Huamin Avionics System Co.

Accel's strategy is in line with the government's efforts to boost manufacturing industries in the 14th Five-Year Plan period (2021-25) and CAAC's latest announcement to boost the "smart aviation" industry. Accel also has a clear vision on the strategy to penetrate the urban air mobility market, Yang said.