China Challenges Boeing, Airbus with First 6 Orders

Commercial Aircraft Corp of China (COMAC) opened its challenge to Boeing and Airbus with its first 100 orders for its C919 single-aisle commercial aircraft from four Chinese airlines and two leasing companies.

The initial orders for the 160-seat plane were announced at the Zhuhai air show by Air China, China Eastern, China Southern, Hainan Airlines — China’s four major carriers — and by U.S. airline leasing service General Electric Capital Aviation Services and a Chinese leasing firm.

COMAC plans to begin building its C919s next year for a maiden flight in 2014. Its first deliveries are scheduled for 2016. The company is gearing up in time to win a share of a domestic commercial aircraft market estimated to be worth over $450 billion over the coming two decades. The plane’s designer Wu Guanghui said COMAC expects to receive orders for 2,000 planes from both domestic and international buyers.

The C919 hopes to compete against Boeing 737 and the Airbus A320. At the prices for these comparable planes, the orders for 100 planes would be worth about $7 billion, less up to a 20% discount commonly given by Boeing and Airbus.

As of the end of September China’s airline sector had increased revenues by 28.9%, with passenger miles up by 17.8% and cargo miles up by 29.9% on year, according to AVIC. China is projected to need 4,265 new aircraft by 2030 — 3,371 large and medium jets and 894 regional aircraft. Passenger traffic is expected to by an average of 8.3% and cargo by 9.8%.

ZHUHAI, Guangdong (China Daily)