September 08, 2009
China's Challenge to Boeing, Airbus Revealed
The China Commercial Aircraft Corp. or COMAC, a division of the big state-controlled AVIC conglomerate, revealed its challenger to Boeing 737 and Airbus A320 planes at the Asian Aerospace International Expo in Hong Kong today: the C919. The mid-range jet plane will seat 190-200 passengers with deliveries (to domestic buyers currently) by 2016. Parts suppliers are not finalized but GE is in discussions to provide the engines. GE already supplies engines for the smaller ARJ-21 in production....
Labels: aircraft, avic, boeing, jet planes
July 22, 2009
COMAC ARJ21 Passenger Jet Flies to Xi'An
Late last week the 3rd and longest flight test of China Commercial Aircraft Corp. (COMAC)'s ARJ21 regional narrow body passenger jet was completed between the Shanghai assembly plant and an aerospace center in Xi'An where the ARJ21 will be further refined. COMAC says it has 208 orders for the plane and we will be on pace to deliver 30 in 2011 and 50 in 2012. The first airline set to receive the ARJ21 is Kunpeng Airlines, a regional division of Shenzhen Airlines, formerly part-owned by the troubled Mesa Air Group of Arizona.
Production of the ARJ21 is the first step in China's desire to become a competitor in the global aerospace industry. The ARJ21 competes directly with Embraer of Brazil and Bombadier in Canada. The later stage of the planned evolution is for Chinese big aircraft to be a "big 3" alongside Boeing and Airbus. Development of China's aerospace industry is a win for global business. The ARJ21 supply chain includes many American firms such as GE, the engine supplier, and Goodrich, United Technologies, Rockwell-Collins, Honeywell, Eaton Aerospace, and Alcoa, among others....
Labels: aerospace, avic, free trade, jet planes
February 02, 2009
China 1 Wales 0 in Airbus Deal?
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In the presence of the Chinese and UK Prime Ministers, Airbus and Xi'An Aircraft (division of the AVIC conglomerate) signed today a new deal to move final assembly and testing of A320 wings to the new factory in Tianjin. According to EADS (Airbus parent) the A320 wing will now be 'fully completed and tested' in China.
This development seems to contradict the prediction last year by the MP for Broughton, Flintside in Wales (just south of Liverpool) that the new Chinese Airbus assembly plant would not affect jobs in his district. Broughton is home to an Airbus plant that had sole monopoloy on final wing assembly. The plant is the largest industrial employer in Wales. MP Mark Tami had said that wings would still be shipped to Broughton from Tianjin for final assembly and testing. Now it appears all that will occur in China. How does this impact the 7,000 or so jobs in Broughton?
Labels: aerospace, avic, free trade
November 06, 2008
AVIC I & II In Massive Merger of Aerospace Industry
The long anticipated consolidation and reorganization of China's aerospace industries is underway with a huge merger of the AVIC I and AVIC II conglomerates. The new single AVIC will be a temporary holding company with several big entities that most likely will each be spun off as independent public companies. The new AVIC is interested in a foreign acquisition possibly a European maker of small to medium size jet planes and AVIC may issue shares. The new AVIC consists of:
Transport Aircraft Corp.
Indepenent supplier expected to compete with Airbus and Boeing for production of Chinese large jets by CACC (COMAC) - see below.
Will own non-defense AVIC assets in Xi'An, Chengdu, Shenyang
"Defense Division"
All military related assets and production centers.
Assigned defense assets in Chengdu, Shenyang, Xi'An, and the military businesses of the Hongdu Aviation Industry Group.
AVICopter
Helicopter makers in Harbin, Changhe and Jingdezhen and other locations.
Aviation Engine Industry Corp.
Containing engine makers and research centers located in Liming, Xi'An, Chengdu, Zhuzhou, and China Gas Turbine of Jiangyou, Sichuan.
General Aviation Company
Production centers at Guizhou and Shijiazhuang of medium size planes.
Aviation Systems Company
Made up of dozens of prototype factories and research institutes across China including those located in Xi'An, Shanghai, and Nanjing.
Commercial Aircraft Corp of China (CACC)
Will become largely independent and rebranded COMAC.
The company will be the Chinese brand challenger to Boeing and Airbus.
And COMAC just got its first big order - 25 Chinese made ARJ21 jets - from GE.
Watch these businesses in the near to medium future. This is big new competition from China in an industry considered a "first world" prerogative.
Labels: aerospace, aircraft, avic, globalization, jet planes, military-industrial complex
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