China Says First jet to Cost Less Than Boeing, Airbus

Discussion in 'Wall St. News' started by wildfirepow, Sep 8, 2009.

  1. Sept. 8 (Bloomberg) -- Commercial Aircraft Corp. of China, the government-controlled planemaker, said its first commercial jet will “surely be cheaper” than comparable Boeing Co. and Airbus SAS models, heightening competition in the world’s fastest-growing aviation market.

    The 168-seater C919, due to enter service in 2016, will use as much as 15 percent less fuel than current Boeing 737s and Airbus A320s, Chen Jin, Comac’s sales head, said at the Hong Kong air show, where the company is showing a model of the plane for the first time.

    Comac will initially target Chinese customers for the single-aisle C919 before seeking to challenge Boeing and Airbus overseas in the largest segment of the plane market. China’s carriers will likely need 3,710 new planes over 20 years, of which 70 percent will be single-aisle aircraft, Chicago-based Boeing said in October.

    “In the medium- to long-term, Chinese aircraft manufacturers will be able to challenge the larger planemakers like Airbus and Boeing,” said Jack Xu, an analyst at Sinopec Securities Asia Ltd. in Shanghai. Price will be a “major advantage,” he added.

    The plane is part of China’s push to develop its own technologies in a range of industries to move beyond being a low-cost assembler for overseas companies.

    Aircraft Orders

    The plane’s development schedule will likely coincide with a surge in aircraft orders worldwide as airlines move ahead with fleet plans delayed by the global recession, Comac’s Chen said. The first test flight is set for 2014, he added.

    Boeing expects to be able to add new technologies to the 737 that will make it more fuel efficient, Randy Tinseth, the company’s marketing chief said today.

    “We have to find new ways to consistently reduce the cost,” he added.

    The C919 threatens Boeing and Airbus in China, which Boeing expects to be the world’s fastest-growing domestic air-travel market.

    “Our home market is the biggest market and has the most potential, so it’s unnecessary to pursue overseas sales just yet,” Chen said. “In the future though, we will surely go into Europe and the U.S.”

    The company’s first customers will likely included China’s big three carriers, Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp., he said. Comac will offer also financial support to win customers, Chen said.
  2. And if the past is indicative, the first jet made will have numerous quality issues as well.

    Moving this to Wall Street news.
  3. One of the last industries to go, but sadly its days are numbered, too.

    What's left? Big government, funeral home directors & McDonalds.
  4. I hope they disclose what airlines purchase this garbage.

    Last time I ever use their carrier.
  5. When are people going to realize that every time you buy some Chinese crap, someone in the US loses their job today & likely someone else won't have a job tomorrow as a result???

    All these Walmarts, Kmarts, Sears, etc, etc that cater to Chinese crap ought to be closed!

    When is the population going to FU%^ING wake up???!!!
  6. considering it is half airbus and half boeing under a different name, no one should be surprised......
  7. Where is the computer you are using made? Where is the TV you watch at home made? Where is the cell phone you use made? Where are the clothes you are wearing made?

    Yeah, exactly what I thought.
  8. Uh, I think that was his point.
  9. ba1


    Of course the Chinese population will be the guinea pig, low monetary cost partly paid with lives that will provide foreign customers with the data to assess the Chinese airplanes safety (of lack thereof).
  10. I've heard that an hour after you fly on one, you feel like flying again
    #10     Sep 8, 2009