Monday, March 28, 2016

Chinese Competitor


After reading through an article from Aviation Week, I have speculations that the Chinese C919 will most likely not make its way over to the United States.  I do not see the need for the FAA to issue a certification to these foreign aircraft. As it is right now, “the Chinese market is big, so sales of perhaps 1,000 units remain plausible, in the opinion of program officials” (Perrett, 2013).  China has a larger population than the United States, and its almost double the size of our landmass. The C919 will do just fine operating solely in China because it is such a large country. 

In the case that the Chinese C919 does receive a certification by the FAA, the main challenge for the U.S. carries would be the price difference of the aircraft. Since China is capable of producing goods at such a cheaper rate than the United States, the C919 would be a much cheaper aircraft to purchase and utilize. At the same time though, the aircraft that the U.S. carries have been using have an established durability throughout many years of use. With a proven reliability, I see it very difficult for the U.S. carriers to veer away from the Boeing or Airbus aircraft.  As far as public perception goes, think of how heated things got when the U.S. automotive companies moved their factories out of the country. It would have the same affect if the U.S. carriers were purchasing Chinese aircraft.


COMAC is a “a state-owned limited liability company, which is formed with the approval of the State Council and jointly invested by State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, Shanghai Guo Sheng (Group) Co., Ltd., Aviation Industry Corporation of China (AVIC), Aluminum Corporation of China Limited (CHALCO), Baosteel Group Corporation, and Sinochem Corporation” (COMAC, n.d.). Commercial Aircraft Corporation of China (COMAC) “functions as the main vehicle in implementing large passenger aircraft programs in China” (COMAC, n.d.). Other than the C919, another aircraft is the ARJ 21. The ARJ21 is an advanced regional jet, which has 90 seats and has a standard range of roughly 2,225 km.  This is a smaller jet solely used for shorter routes from hub airports to other hub airports.

If the C919 were to receive a certification by the FAA, it would not stand a chance in the U.S. market with the well-known names of Airbus and Boeing. These companies have an established tracking record along with years of great service to the airlines. What would cause the U.S. carriers to veer away from the aircraft that they have used for so long? Therefore, I definitely do not see COMAC being any threat to either any of the U.S. airlines nor any airlines over in Europe.  The C919 would be great for China and solely for domestic flights, but the U.S. carriers don’t have a need for it.



Not much has been said from either Airbus or Boeing about the C919 because quite honestly they probably aren’t even worried about it. While COMAC is trying to produce an aircraft that will compete with the A320 or the 737; both Airbus and Boeing already have designs in place for more advanced aircraft.  Although the C919 will be brand new, it will not compete with whatever Boeing or Airbus release next.




References:

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


Perrett, B. (2013, December 16). C919 May Be Largely Limited To Chinese Market. Retrieved from http://aviationweek.com/awin/c919-may-be-largely-limited-chinese-market

2 comments:

  1. I agree with you that it would be very difficult for US carriers to stop using Airbus or Boeing and instead choose to use the C919. I think that there would be a lot of controversy especially at first because many people know that Boeing and Airbus have been around a lot longer than the C919. The public would probably feel a lot safer using airlines that fly Boeing or Airbus aircraft instead of a brand new aircraft. Maybe after a long time, where this aircraft has actual data that proves its safety and reliability will there be a slight consideration, but probably only if it proves to be better than what these carriers would currently be using. I think that because safety is such a high priority, that carriers would choose to opt out of using a brand new Chinese made aircraft especially because, like you said, these companies have provided good service to the airlines.

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  2. I would have to agree that it would be difficult to get the major American carriers to veer away from Boeing and Airbus. However, they are companies that wish to profit as much as feasible in the market. Knowing this, I believe it would be possible for the Chinese aircraft to gain a foothold in the U.S. market. However, for this to happen the C919 would have to establish a proven track record in China and other countries before the U.S. carriers would consider the transition. Additionally, the C919 would have to prove it is mechanically sound, and comparable to Boeing and Airbus in maintenance costs to become a viable alternative.

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