Company gets go-ahead to sell Chinese airlines

CCTV supplier AD Group is targeting the Chinese aerospace market after winning certification for its on-board CCTV technology.

The equipment allows pilots on commercial airliners to see what is going on in the cabin via monitors in the cockpit.

The certificate will allow AD Aerospace, a division of the Daresbury Park-headquartered group, to sell the system to Chinese airlines using Boeing 737s.

AD Group, owned by CCTV entrepreneur Mike Newton, said the certification opens up a potentially huge market. The company is already in talks with Chinese airlines and aircraft manufacturers such as AVIC and XAC.

Rob Davies, AD Aerospace marketing manager, said: "This will allow us to access the Chinese mainland market — the fastest-growing aerospace market in the world. They are ordering more planes than anywhere else at the moment because it's a country of a billion people. They currently have 780 planes on order. It could be very lucrative for AD group although we have no predictions yet."

Demand up

AD Group has sold over 500 CabinVu systems since the product was first launched in 2001. Demand shot up as a direct result of the 9/11 terrorist attacks in the USA.

Clients include easyJet, Hong Kong Express, Hong Kong Airways, bmi, British Airways and JetBlue but it has not been able to penetrate mainland China until now.

AD Group's main competitor in the airline market is US firm Goodrich, which also has certification in China. Davies said: “We are not the only company that makes this sort of system although there is probably less than half a dozen worldwide.”

In Europe it is compulsory for airlines to have a system which allows pilots to see outside the flight deck. The Chinese government is considering similar legislation, a move which would boost AD group's potential revenues in the country.

AD Group is now also considering applying for Chinese certification for its cargo and cabin hold CCTV system which has recently gone on sale in Europe.

The company says the technology prevents bags been stolen from the hold and could also foil terrorist attacks. Davies said: “We are seeing what interest there is in China before we apply for certification because it is an expensive process.”

David Stroud, chief executive of Manchester-based aviation consultants The Route Development Group, said: "China is the fastest-growing aviation market in the world, current ly both in high passenger volumes and rates of growth. In order to satisfy the market growth, new aircraft will be needed, and both Airbus and Boeing predict the need for a large increase in fleet. So all in all it is a very strong market prospect for equipment suppliers."