Chinese Competitor to Boeing and Airbus - COMAC

1.     Do you believe that the C919 will ever receive FAA certification? Why or why not?

I do believe that the C919 will receive FAA certification, but I am not sure when that will happen. I think that the aviation industry is very competitive, and the FAA is probably reluctant in opening up the industry to a new player, and the most important reason would be safety. Like everything else, China has reverse engineered just about everything in the world market, and in spite of the Chinese stating that they engineered the C919 completely by themselves, I question if that is true. Most products that come out of China are of lessor quality and the main objective is to product fast, bootlegged products for quick profit. Even though, the aviation industry’s main objective is safety, I am still a bit objective, when it comes to aircraft transporting passengers on Chinese, made in China aircraft.

On the other hand, after researching this new C919 aircraft, I could not help but feel excited for the people of China. I think it is very inspiring for a country to experience new technology for the first time, no matter how they got there. The country was showing so much pride and I was very touched by the footage I was watching. The maiden flight that took place on May 4, 2017 at the Shanghai Pudong International Airport, showed tremendous national pride for China, and I was glad to have seen this (C., 2017).

2.     For sake of argument if the C919 receives FAA certification, what challenges do you see for US carriers? Look at various aspects – for example, what would it mean in terms of aircraft purchases? What would it mean in terms of public perception?

If the C919 receives FAA Certification, U.S. carriers will have another option when making their purchasing decisions. If the quality of the aircraft is just as sound as the aircraft they are purchasing now, this could mean that China could gain a great new marketing and selling power, with clients in the U.S. I do not think that the cost of making the new C919 has been shared, but, if China can product cheaper aircraft, companies will always try to cut cost, to build stronger gains. This will be a threat to Boeing and Airbus, they may need to bring down their prices to complete with China.

As for public perception, as I said earlier, China does not have a great record of producing quality products, but it is possible to change perceptions. If the FAA gives them the certification, that they so anxiously want, China’s C919 will be dubbed, as safe and airworthy. Once the moment the FAA gives China the go ahead, they will be campaigning hard to sell in the U.S. and European markets.

3.     Discuss COMAS a little and its relationship with the Chinese airlines and the Chinese government. Are there other aircraft in the works? If so, what are the specifics?

Commercial Aircraft Corporation of China, Ltd. (COMAC) is a centrally managed core enterprise in civil aircraft industry of China. COMAC functions as the main vehicle in implementing large passenger aircraft programs in China (Commercial, n.d.). “COMAC is determined to independently build large Chinese passenger aircraft that will soon be soaring through the blue skies.” (Commercial, n.d.). COMAC does have some other aircraft in the works. They have a ARJ21 and CR929 aircraft. The ARJ21 is a short-medium range turbofan regional aircraft, this was the first of their aircrafts to have an application submitted to the FAA according to FAR25. It has a layout of 78-90 seats. They received a type rating from the Civil Aviation Administration of China (CAAC) on December 30, 2014 and a production certificate on July 9, 2017, from their government. COMAC’s, CR929 aircraft, is a long-range wide body aircraft, with a dual-aisle. This aircraft is jointly developed by China and Russia, with seats for 280 passengers. There will also be a “junior version” and a “senior version” of this model type.

4.     If this aircraft were to receive FAA certification, do you feel that other companies would enter the market as competitors to Boeing and Airbus?

If other companies were to enter the market as competitors to Boeing and Airbus, it would not be right away. No country or new company has entered the market since 1969 (Aboulafia, 2017). Is proves that it is not that simple. I feel that China is able to break into the market, because China has the technological ability to do so. Companies such as, Boeing and Airbus have so much history, experience, and generations of aircraft creation, that companies or people that want to purchase an aircraft trust them and know that they are getting a quality product that is safe. Money is not everything, but the amount that these two companies have poured into making their aircraft the best, says a lot. In this industry, a million-dollar mistake can make your company go bankrupt, so there is no room for error. I believe in these companies, and as a student pilot, who wants to make flying planes a career, one has to believe that you are flying a safe aircraft. This will be the challenge that China will face, in order to be successful in the U.S. market.

5.     Finally, has Boeing or Airbus responded to this rollout in any way?

I did not find any articles that Boeing or Airbus making any responses to the new possible competitor, COMAC, and their new aircraft, C919. But I am interested to see what is going to happen with Boeing who wants to build an offshore plane factory in China. China is the second largest air travel market after the U.S. (Research, 2015) and Chinese carriers are planning to buy or lease, 6300 commercial transports over the next 20 years (Thompson, 2015). Most of these will be from Boeing or Airbus, but what will happen if the FAA grants COMAC their certification? Will these contracts fall through, to allow COMAC to have the market power in China? This will be interesting to see what is going to happen.

Aboulafia, R. (2017, May 12). A reality check on China’s C919 jetliner. Retrieved March 02, 2018, from https://www.forbes.com/sites/richardaboulafia/2017/05/08/a-reality-check-on-chinas-c919-jetliner/#70ca89b9195f

C. (2017, May 05). C919, china’s first big jetliner, makes maiden flight. Retrieved March 01, 2018, from https://www.youtube.com/watch?v=HeuKAU4s1Hw&t=1873s  

Commercial Aircraft Corporation of China, Ltd, (n.d.). Retrieved March 3, 2018, from http://english.comac.cc/aboutus/introduction/

Thompson, L. (2015, September 23). Boeing to build its first offshore plane factory in China as ex-im bank withers. Retrieved March 03, 2018, from https://www.forbes.com/sites/lorenthompson/2015/o9/23/boeing-to-build-its-first-offshore-plane-factory-in-china-as-ex-im-bank-withers/#55719c6d7820

Research, Z. E. (2015, November 04). Is the COMAC C919 a threat to Boeing’s (BA) dominance? Retrieved March 03, 2018, from https://www.zacks.com/stock/news/196801/is-the-comac-c919-a-threat-to-boeings-ba-dominance