China Is Biggest Emerging Threat To Boeing And Airbus, Says Albaugh

[Major Shaitan Singh]

Chinese airframer Comac will be the biggest threat to Boeing and Airbus and most likely to succeed in developing a program comparable to those offered by the duopoly, says Jim Albaugh, president of Boeing Commercial Airplanes.

Speaking at the Aviation Club of the U.K. on Thursday, Albaugh said Boeing and Airbus face competition from Canada, Brazil and China, but that “I don’t believe all of them are going to be successful. My guess is one of them will emerge and become a very good competitor for us, and I won’t be surprised if it was China.”

Albaugh supports his view by noting China’s $5 billion commitment to developing its regional jet, which he says may never be certified, and a further $30 billion for the C919 narrowbody program. “If that’s going to be the airplane or not, I don’t know, but eventually, they will get it right,” said the Boeing executive.

He suspects Comac initially will sell aircraft in China and countries with close links to the country, but eventually will have a product that can compete with Airbus and Boeing offerings.

Albaugh, however, is less concerned with competition from Brazil, noting that Embraer has decided to focus on the regional jet market. With Bombardier’s CSeries, however, he is less emphatic, noting, “With Bombardier, you have to assume they’re going to do what they say they’re going to do,” he said, adding, “Competition is a great thing. Airbus coming along made Boeing a better company. And Comac will make both Boeing and Airbus better at what we do.”

China’s emergence comes as established aerospace markets like the U.S. and the U.K. reduce their investment in research and development to their lowest levels in decades, says Albaugh, noting that China has tripled its investment in technology and people in the past decade.

“What are you going to do with all these emerging threats? The answer is simple: You have to evolve the airplane and produce more value for the customer. The things that Willie Walsh [CEO of International Airlines Group] and others want is fuel efficiency, environmentally friendly aircraft and low maintenance costs,” Albaugh added.

Boeing’s product strategy is to evolve the 737 for the third time, says Albaugh, and to continue developing the 787. The airframer also is considering a 757 replacement, but for now the 737 MAX achieves 95% of the missions assigned to the larger narrowbody.

Albaugh also says Boeing is taking a hard look at its 777 program, however, he notes that “the question is when [to redevelop]. We are working with customers to find out what their needs are and getting the configuration right.”

 

[Nishan_101]

Yeah! I am sure Pakistan will order it soon.

 

[kawaraj]

IMHO China should allow India attending some investments in the venture. Markets of China and India alone can well sustain this investment.

 

[Hafizzz]

Chinese airframer Comac will be the biggest threat to Boeing and Airbus and most likely to succeed in developing a program comparable to those offered by the duopoly, says Jim Albaugh, president of Boeing Commercial Airplanes.

Speaking at the Aviation Club of the U.K. on Thursday, Albaugh said Boeing and Airbus face competition from Canada, Brazil and China, but that “I don’t believe all of them are going to be successful. My guess is one of them will emerge and become a very good competitor for us, and I won’t be surprised if it was China.”

Albaugh supports his view by noting China’s $5 billion commitment to developing its regional jet, which he says may never be certified, and a further $30 billion for the C919 narrowbody program. “If that’s going to be the airplane or not, I don’t know, but eventually, they will get it right,” said the Boeing executive.

He suspects Comac initially will sell aircraft in China and countries with close links to the country, but eventually will have a product that can compete with Airbus and Boeing offerings.

Albaugh, however, is less concerned with competition from Brazil, noting that Embraer has decided to focus on the regional jet market. With Bombardier’s CSeries, however, he is less emphatic, noting, “With Bombardier, you have to assume they’re going to do what they say they’re going to do,” he said, adding, “Competition is a great thing. Airbus coming along made Boeing a better company. And Comac will make both Boeing and Airbus better at what we do.”

China’s emergence comes as established aerospace markets like the U.S. and the U.K. reduce their investment in research and development to their lowest levels in decades, says Albaugh, noting that China has tripled its investment in technology and people in the past decade.

“What are you going to do with all these emerging threats? The answer is simple: You have to evolve the airplane and produce more value for the customer. The things that Willie Walsh [CEO of International Airlines Group] and others want is fuel efficiency, environmentally friendly aircraft and low maintenance costs,” Albaugh added.

Boeing’s product strategy is to evolve the 737 for the third time, says Albaugh, and to continue developing the 787. The airframer also is considering a 757 replacement, but for now the 737 MAX achieves 95% of the missions assigned to the larger narrowbody.

Albaugh also says Boeing is taking a hard look at its 777 program, however, he notes that “the question is when [to redevelop]. We are working with customers to find out what their needs are and getting the configuration right.”

Where is the web link to your News source ?

 

[shuttler]

they give us a lot more respect than most cyber cheerleaders do! Great!

IMHO China should allow India attending some investments in the venture. Markets of China and India alone can well sustain this investment.

not a good idea. we are not short of fund nor domestic market.

super-power should develop their own airliners.

Apart from C-919, we also have these:
.
新舟60, Xīnzhōu 60, "Modern Ark 60 (Xian MA-60) :

.
Xian MA-60 and its variants [66 delivered + 46 ordered (October 2011)] have already been serving domestic and international customers since its first flight in 2000:
.
http://en.wikipedia.org/wiki/Xian_MA60
.
and also this AR J-21 -700 coming soon:
.

.
First flight 2009:

.

 

[SinoChallenger]

IMHO China should allow India attending some investments in the venture. Markets of China and India alone can well sustain this investment.

No never allow india to invest. Let them continue to starve. Never allow indians visit to China. Let them stay in their "shining incredible" country. Don't sell indians any Chinese airliners, high-speed trains, smartphones, electric vehicles or anything. Let them crawl in mud. Don't let them know the rupee is hyperinflating. Let them self-delude about "collapsing China."

 

[vasrocks]

No never allow india to invest. Let them continue to starve. Never allow indians visit to China. Let them stay in their "shining incredible" country. Don't sell indians any Chinese airliners, high-speed trains, smartphones, electric vehicles or anything. Let them crawl in mud. Don't let them know the rupee is hyperinflating. Let them self-delude about "collapsing China."

Well, then China would be losing out on a market potentially as big as their's. I don't think they would do that. Not all Chinese are as senseless as you (if you are Chinese that is).

 

[terranMarine]

That's right, India has loads of money you know, that's why they buy the best from the west. China only make unreliable copies of western technology. Nope don't even try to suggest to allow India to invest into Chinese market.

 

[Solomon2]

Hmm, I've been hearing stuff like this since China first tried copying Boeing airliners back in the seventies. Why does China think it can compete now when it has failed to do so for decades?

 

[surya kiran]

DO you have any idea what is the kind of trade between India and China. Purely as nations, not groups? Its huge. Combined is more than 62 BN USD if am not mistaken. So yeah, your companies will come to sell here. And you will try to hardsell it to the airlines here. Get real.

 

[Tshering22]

This would revolutionize the civil aviation industry completely. For so many decades, Boeing and Airbus dominated the world with sidelines of Soviet carriers (Tupolevs, Yaks and Ilyushins).

With the emergence of Sukhoi from the ashes of Soviet Union as a regional carrier maker and China's emergence into short haul market, a lot of Asian countries would be interested in switching over when these aircraft meet their technical standards and began to evolve.

With Air Indus ordering Sukhoi's Superjet 100, I feel that PIA should be the launch export customer of C919. That way, Pakistan's civil aviation would be able to detach itself from western strategic control (every industry in the west that is export oriented, is strategic level).

 

[PERSIAN GOD KING]

 

[Tshering22]

Has Iran expressed any interest in acquiring these? They could be good for medium haul flights.

 

[PERSIAN GOD KING]

Has Iran expressed any interest in acquiring these? They could be good for medium haul flights.

Iran is working on her own plane

 

[India defense]

Stay way from cheap quality of Chinese product......

No never allow india to invest. Let them continue to starve. Never allow indians visit to China. Let them stay in their "shining incredible" country. Don't sell indians any Chinese airliners, high-speed trains, smartphones, electric vehicles or anything. Let them crawl in mud. Don't let them know the rupee is hyperinflating. Let them self-delude about "collapsing China."

Thanks for your speech ....no Indians is buying Chinese garbage stuff anyway....