China Aircraft Maker Delivers First Plane; No Direct Threat to Boeing, Airbus

[Blue Marlin]

China Aircraft Maker Delivers First Plane; No Direct Threat to Boeing, Airbus
By Paul Ausick November 30, 2015 9:05 am EST

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Commercial Aircraft Corporation of China, known as Comac, has delivered the first ARJ21 regional jet, out of an order for 30, to China’s Chengdu Airlines. The airplane first reached the drawing board in 2002 with a plan to enter service in 2006. In 2008, Comac took over the company that had started building the plane and finally pushed it out the door some seven years later.


The regional jet is expected to sell decently in China, where a government agency reviews and approves all aircraft purchases. According to industry consulting firm Ascend Flightglobal, the global market for regional jets is forecast to reach 4,360 by 2034. The new Chinese aircraft will compete instead against Brazil’s Embraer S.A. (NYSE: ERJ) and Canada’s Bombardier, the leading makers of regional jets. Japan’s Mitsubishi flew a first test flight for its new 90-seater earlier this month, and Russia’s Sukhoi also has an offer in the space.

Chengdu Airlines currently operates 20 A319s and A320s from Airbus, and the ARJ21s, which can carry up to around 90 passengers, are not likely to supplant the larger Airbus planes.

The ARJ21 is not considered a threat either to Airbus or Boeing Co. (NYSE: BA) because neither makes a regional jet. Early in November, Comac rolled out the first of its new dual-engine, narrow-body C919s, a passenger plane the company expects to compete with the Airbus A320 and the 737 family of planes from Boeing. The first C919 is expected to begin flight testing early in 2016.

Boeing has estimated the Chinese market will need more than 7,200 single-aisle planes, and some 70% of those planes will be bought to meet the rapidly expanding Chinese domestic market. Globally, Boeing has estimated that demand for new single-aisle planes will total 26,730 between 2015 and 2034 while worldwide demand for regional jets is expected to total 2,490 new planes.

Comac’s new plane is not certified to fly in either the United States or Europe, and a new version is reportedly being designed to meet U.S. certification requirements. Until those requirements are met, the company can work on filling the more than 300 orders it has from Chinese airlines and leasing firms


Read more: China Aircraft Maker Delivers First Plane; No Direct Threat to Boeing, Airbus - The Boeing Company (NYSE:BA) -

 

[General Observer]

China Aircraft Maker Delivers First Plane; No Direct Threat to Boeing, Airbus
By Paul Ausick November 30, 2015 9:05 am EST

Print Email
inShare

Commercial Aircraft Corporation of China, known as Comac, has delivered the first ARJ21 regional jet, out of an order for 30, to China’s Chengdu Airlines. The airplane first reached the drawing board in 2002 with a plan to enter service in 2006. In 2008, Comac took over the company that had started building the plane and finally pushed it out the door some seven years later.


The regional jet is expected to sell decently in China, where a government agency reviews and approves all aircraft purchases. According to industry consulting firm Ascend Flightglobal, the global market for regional jets is forecast to reach 4,360 by 2034. The new Chinese aircraft will compete instead against Brazil’s Embraer S.A. (NYSE: ERJ) and Canada’s Bombardier, the leading makers of regional jets. Japan’s Mitsubishi flew a first test flight for its new 90-seater earlier this month, and Russia’s Sukhoi also has an offer in the space.

Chengdu Airlines currently operates 20 A319s and A320s from Airbus, and the ARJ21s, which can carry up to around 90 passengers, are not likely to supplant the larger Airbus planes.

The ARJ21 is not considered a threat either to Airbus or Boeing Co. (NYSE: BA) because neither makes a regional jet. Early in November, Comac rolled out the first of its new dual-engine, narrow-body C919s, a passenger plane the company expects to compete with the Airbus A320 and the 737 family of planes from Boeing. The first C919 is expected to begin flight testing early in 2016.

Boeing has estimated the Chinese market will need more than 7,200 single-aisle planes, and some 70% of those planes will be bought to meet the rapidly expanding Chinese domestic market. Globally, Boeing has estimated that demand for new single-aisle planes will total 26,730 between 2015 and 2034 while worldwide demand for regional jets is expected to total 2,490 new planes.

Comac’s new plane is not certified to fly in either the United States or Europe, and a new version is reportedly being designed to meet U.S. certification requirements. Until those requirements are met, the company can work on filling the more than 300 orders it has from Chinese airlines and leasing firms


Read more: China Aircraft Maker Delivers First Plane; No Direct Threat to Boeing, Airbus - The Boeing Company (NYSE:BA) -

Of course it wouldn't mate, why would it? Boeing and Airbus don't even produce bloody regional jets!

But, on the topic of Embraer and Bombardier, at this point, I don't see a direct challenge either. Perhaps once the Chinese civil aviation market develops itself over time, things might change. In the immediate scope of within 5 to possibly 10 years, I wouldn't place too many bets on it.

Then again, this is more for their domestic market, where a ton of capital is available, so, maybe global consumption wasn't the primary motive to begin with for Comac?

 

[Blue Marlin]

Of course it wouldn't mate, why would it? Boeing and Airbus don't even produce bloody regional jets!

But, on the topic of Embraer and Bombardier, at this point, I don't see a direct challenge either. Perhaps once the Chinese civil aviation market develops itself over time, things might change. In the immediate scope of within 5 to possibly 10 years, I wouldn't place too many bets on it.

Then again, this is more for their domestic market, where a ton of capital is available, so, maybe global consumption wasn't the primary motive to begin with for Comac?

if you look at it by product then thats when it will be a problem. the crj series from bombardier and the erj series from embraer will be at risk. remember its china we are talking about. they will cutout any competiter. heres and example the arj-21-700 cost $20 million and its a 90y seater jet. now a crj 900 from bombardier is also a 90y seater but it cost $38.9 million thats almost double. course this is the stated price and during negoations the price will be lowered but even still the crj will not even come close. the arj 21 also has western tech so its so it meets the requirements of all airtlines. but there is one thing that i am uncertain about, and thats maintainance. but then again it has just entered service and time will tell if its a work horse or not. also dont forget same applies to the c919 and thats a direct competitor to the a320 series and the 737 series.

p,s, china and russia is developing a widebody jet.

 

[General Observer]

if you look at it by product then thats when it will be a problem. the crj series from bombardier and the erj series from embraer will be at risk. remember its china we are talking about. they will cutout any competiter. heres and example the arj-21-700 cost $20 million and its a 90y seater jet. now a crj 900 from bombardier is also a 90y seater but it cost $38.9 million thats almost double. course this is the stated price and during negoations the price will be lowered but even still the crj will not even come close. the arj 21 also has western tech so its so it meets the requirements of all airtlines. but there is one thing that i am uncertain about, and thats maintainance. but then again it has just entered service and time will tell if its a work horse or not. also dont forget same applies to the c919 and thats a direct competitor to the a320 series and the 737 series.

p,s, china and russia is developing a widebody jet.

Yes, some elements may be of Western origin, but the composites used are likely to be behind. Also, integration. You may have some pretty advanced electronics but China lacks experience in making everything fit together. Also important, remember, this plane is a decade behind schedule, so many elements are already behind the current generation.

However, this is all due to change, for the reason you mentioned-It's China. They're learning from recent projects, they got money, they got funding, I have faith in their handling and don't doubt the industry will come up in the next decade and catch to world standards. For now, China is still catching up.

I am aware, it's the C929. I believe it's supposed to compete directly with the 777.

 

[21stCentury]

China's choose of color schemes is very terrible, just like using rainbow smoke for the military parade. Ugh.

 

[Kyle Sun]

China's choose of color schemes is very terrible, just like using rainbow smoke for the military parade. Ugh.

The coating is really ugly.
IT doesnot even have a clear style.

 

[21stCentury]

The coating is really ugly.
IT doesnot even have a clear style.

just looked at the picture again...and just noticed rainbow color scheme on the on the tail fine. LOL goddamnit.

 

[Kyle Sun]

just looked at the picture again...and just noticed rainbow color scheme on the on the tail fine. LOL goddamnit.

I prefer concise and easy coating .

 

[terranMarine]

I prefer concise and easy coating .

Luckily it's just CG

 

[TaiShang]

I prefer concise and easy coating .

I guess the color scheme will be based on what the customer wants. But I agree, the demonstration product must have a nice, graceful color scheme. I liked Dreamliner's color design when it first came out.