Chinese Competitor

Is C919 really a Chinese made Aircraft?

According to my research, I would say C919 is a very international aircraft, most of the key component is actually made by U.S.A the electric system and APU of the aircraft is making by Honeywell, The flight control systems and the fuel systems are making by the Parker Aerospace, which is also a U.S company. The engines are making by CFM. Other components for example, fire detection, Engine reverser, radar, anti-icing, are made by European companies. COMAC is only building the wings, radar cover, air frame and final assemble. (Aerotime, 2015) This aircraft would be more “American” than “Chinese”. The fact that the aircraft is mostly contributed by the American companies would increase the possibility of getting the FAA certification, since most of the essential parts of the aircraft is produced by American companies and most of the past are currently installed on Boeing and Airbus aircrafts as well.

What is the advantage and dis-advantage of C919?

The main competitor of C919 would be Boeing 737Max and A320 NEO since they are the newest model of Boeing and Airbus with the same capacity of 158-180 seats class. From the technological side, one of the disadvantages of C919 comparing to Boeing 737 and Airbus 320 is that Boeing 737 and A320 would able to cover a larger range than the C919. According to the research, 737 can able to cover nearly 1000 miles more than the C919, (Hahn, 2012) also Boeing 737 and A320 would have more fuel efficiency engine (Hahn, 2012). In terms of sustainability, the lifespan of the C919 aircraft might be questionable. Would it be depreciating much faster than 737 and A320? Since the aircraft is still in a testing stage the answer still remains unknown until COMAC gives actual data, which is also a huge disadvantage to C919 since there are not any actual data to prove the performance, however, this is the forth generation of Boeing 737, and Second generation for A320, they would have tone of data and proof the performance and fuel efficiency of their aircraft. Most of the customer would not want to take a risk of trying a brand new product.

Just like other products that are making in China, pricing is always a big advantage. The price for a C919 is almost 50 millions. The listing price fro A320 and 737 is from 75 million to 90 million, (Johnson, 2015) it is almost 30% cheaper than the airbus however most of the operator will be considering the maintenance cost, Operation cost, sustainability and also the pilot training cost. Most of the airline would prefer remain their fleet diversity small so that it would help them to save training and maintenance cost, and they are not willing to take risk of trying new products, this is the huge disadvantage of C919.

Modern Ark 60, Most successful product of Chinese Aviation Manufacture  

Prior to the establish of COMAC, there is another Chinese aircraft manufacture also know as Modern Ark starting producing their MA60 aircraft, it is a 50-60 seats turbo prop aircraft, it is competing against ATR 72 and Dash 8, It was firstly starting operating in Feb 2000 within regional route in China. The Chinese government start promoting their products to developing countries in Asian and Africa with a numerous of discounts. MA60 start delivering to operators such as Laos Airway, Zest Airway of the Philippine, Kyrgyzstan Airlines, and Nepal Airways. Merpia Airlines  became the largest oversea operator of MA60, they are currently operating more than 12 MA aircraft. (Modern Ark, 2012) However the MA60 aircrafts had fail to receive certification from the FAA, which cause the target market of the aircraft limited within developing African country and Asian countries that does not follow FAA regulations. The is the first ever aircraft that china successfully promoted to oversea market.

However, MA60 aircraft are not keeping a very good safety record, there are several fatal accidents happened throughout these few years. There are almost 13 incident filed within the past 5 years most aircraft were totaled.(Aeroinside, 2015) The manufacture Modern Ark claim that those accident were mostly due to human errors, lack of pilot training and maintenance technology in the developing country, however those incident still causes a huge impact on the reputation of the Chinese made aircraft.

Competing in Local Chinese Market.

Since C919 is doubtful of receiving FAA certificate, which currently did not create any threat in the oversea markets. However, I do believe C919 will creates some pressure to both Boeing and Airbus within the Chinese aviation markets, as we know Chinese aviation industry is  developing very fast, and they have a huge demand of new airplanes. The second largest airline in China, China Eastern Airlines states that they are currently operating more than 500 airbus and Boeing aircraft, by 2020, they are planning to expand their fleets to 800 aircraft. However 4 biggest Airlines in China Hainan Airlines, Air China, China Eastern, and China southern, each of them had only placed 20 aircraft. Other remaining orders are placed by financial and leasing instituted, their operator are not confirmed yet. (Jiang, 2015) However Airbus and Boeing both receive more than 300 aircraft orders from Chinese operators, and they are planning a huge expands on Chinese market. For example Boeing decided to build a new assemble line in China, according to Boeing officials Chinese aviation market could bring Boeing over 1 trillion dollars of revenues within next 20 years (Forbes, 2015). Chinese market is very significant to them. Adding a new assemble line in China will be speeding up their aircrafts deliveries which will be helping to with more advantages toward oncoming competition against Airbus and COMAC. Also Airbus start operating their final assemble line located in China back in 2008, it could speed up their delivery to Chinese carriers, they are planning on expanding their plant in Tian Jin Chinese and adding Airbus 330 wide body assemble line to current facilities in China. .(Rapier, 2015) As we can see, the competitions in China is very intense, however Airbus and Boeing is way ahead of COMAC.  

How can the FAA certification benefits C919\?

Both Airbus and Boeing are treating Chinese market very importantly. However C919 is still in the testing and certification processes. By looking the orders from Chinese local airline, we could see that there are still lack of confident on Chinese products even from Chinese local operators. However receiving FAA certification would be a huge step to COMAC, it is a chance to proof their products are achieving an international standard intern of air worthiness and quality, and it would be more reorganization by the industry.

References

Airline Incidents for aircraft type XIAN MA-60. (n.d.). Retrieved from https://www.aeroinside.com/incidents/type/ma60/xian-ma-60

Hahn, L. (2015, November). Can COMAC break the Airbus-Boeing duopoly in commercial aircraft? Retrieved from https://www.quora.com/Can-COMAC-break-the-Airbus-Boeing-duopoly-in-commercial-aircraft

Jiang. (2015, November). China takes on Boeing, Airbus with new passenger jet. Retrieved from http://www.cnn.com/2015/11/02/asia/china-new-c919-passenger-jet/

Johnson, P. (2015, December). Competition For Boeing As COMAC's C919 Is The New Kid On The Block. Retrieved from http://www.forbes.com/sites/pierrjohnson/2015/12/17/competition-for-boeing-as-comacs-c919-is-the-new-kid-on-the-block/#f4d49306c1af

MA60 passenger aircraft. (n.d.). Retrieved from http://www.modernark.cc/en/a.asp?bigclass=MA Series&smallclass=MA60 passenger aircraft

Rapier, G. (2015). Here's the Chinese factory where Airbus assembles its most popular plane. Retrieved from http://www.businessinsider.com/airbus-china-factory-a320-2015-8

Why C919 can hardly be called Chinese. (2015, November 20). Retrieved from http://www.aerotime.aero/en/people/people-news/editorial/20413-made-in-china-why-c919-can-hardly-be-called-chinese

Why Is A China Plant Important For Boeing? (n.d.). Retrieved from http://www.forbes.com/sites/greatspeculations/2015/09/25/why-is-china-plant-important-for-boeing/#6f00f69c2871