It is hard to tell if the
FAA will be willing to certify the new Chinese COMAC C919 which is a major
setback for the company as this means that the C919 will not be able to be sold
in the United States. A previous jet, the ARJ21, also hasn’t been certified by
the FAA even though orders are set to be delivered globally. Since the
certification of the C919 is directly affected by the ARJ21 it is not likely to
receive certification anytime in the near future and COMAC has been mainly
focused on getting certification from the Civil Aviation Administration of
China.
The C919 will be a source of
national pride for China and I believe that COMAC do its best to prove that the
airplane is safe by getting certification in China and the United States. Even with
most of the key components of the aircraft coming from foreign companies I
think that U.S. air carriers will be hesitant on purchasing the C919. Whatever
decisions airlines make will depend on what makes money and if people have the
idea that Chinese made products are inferior then air carriers will be reluctant
to make the C919 an addition to their fleets. Public perception will be a huge
problem for any airline planning to fly the C919 as it will be seen as unsafe.
There are also past Chinese domestic aircraft that have had a negative effect
on Western perceptions of Chinese produced aircraft. The XIAN MA-60 is an
aircraft that has been in the spotlight negatively for many years following a
high number of accidents. Even Chinese airlines refuse to fly it and they have
to be highly subsidized and in some cases gifted in order to reach the market.
If U.S. carriers purchase
the C919 will COMAC how quickly will COMAC be able to produce the aircraft? 517
of the aircraft have been ordered so far and that is almost exclusively
domestically. The aircraft is also not expected to be introduced until 2019. It
will take years to deliver enough aircraft to meet demand and that is without
any international orders. According to Boeing, in 2017 it will produce 47
single-aisle airplanes per month, more than 560 per year. I do not see many air carriers using the C919
especially since Airbus and Boeing have already proven to be reliable with
decades of service. The C919 may be a safe aircraft but in order to compete it
would have to offer something new or innovative to the market.
COMCAC is a limited liability
company that is owned by the People’s Republic of China. It implements large
passenger aircraft programs within China as well as developing regional jet
liners in China. The mission of COMAC is to let Chinese made aircraft fly
through the sky. COMAC wants its aircraft program to be a symbol of reform and
open policy in the new era of China as well as making COMAC a world-class
aviation enterprise. Through COMAC China hopes to create an innovative aviation
industry with its own characteristics and technology. Currently COMAC has developed
the CRJ21 and the C919. The CRJ is a short and medium range regional aircraft
that was developed in China with its own intellectual property rights (COMAC, 2015) . In addition to the
two aircraft already developed the company is already planning to produce a
competitor to the Boeing 777, the C929. The C929 is in the research stage of
key technologies and is reported to use domestic engines and carry 300
passengers (Jin, 2015) .
The C919 was built as a direct
competitor to the duopoly of Airbus and Boeing in the global market. COMAC
expects to sell 2,000 of its aircraft within the next 20 years and has received
about 517 orders (Jiang, 2015) . Even with certification
I do not think that the C919 can compete in the global market on the scale of
Airbus and Boeing. One reason is that it is too dependent on foreign suppliers
to produce the aircraft which is not unusual because even Airbus and Boeing outsource
part globally. China requires its suppliers to form joint-ventures with Chinese
which caused international companies to balance accessing the C919 with
protecting their intellectual property rights. Another problem I see with China
being able to compete is the duopoly that Boeing and Airbus have on the global
market. Boeing, which currently dominates the market at 43%, has 648 commercial
aircraft deliveries. Airbus comes in a close second with 626 deliveries (Team, 2014) . There is no doubt
that the C919 will compete domestically but internationally Western companies
will still dominate the industry. It will take a long time for COMAC to become
a serious competitor but it is possible if even a couple of decades away. Irkut, a Russian company has unveiled an
aircraft that may compete with Boeing and Airbus. The MC-21 has performed
outstandingly and will most likely be cheaper due to the weak ruble. A big
challenge to the program will be Russia’s international relations and political
pressure within Russia to use domestic suppliers. Bombardier has been trying to
compete with the introduction of its CSeries program but the rising costs and
long delays have left investors worrying whether the company will be able to
pull through. As of now it looks as if Boeing and Airbus will not have to worry
anytime soon but a lot can happen in only a few years.
So far both Airbus and Boeing have
been supportive of COMAC and have congratulated then, stating that the market
is big enough for another manufacturer. Both of the companies have been
increasing their foothold in China and developing aircraft to compete with their
Chinese rival.
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