Chinese Competitor to Boeing and Airbus

     In late 2015, COMAC, or the Commercial Aircraft Corporation of China, finished and presented its first large airliner aircraft that was home built and is supposed to compete against Boeing and Airbus. “China rolled out its first homegrown large passenger jet off the production line in Shanghai, vowing to challenge the dominance of Airbus and Boeing in the global commercial aviation market. With a flying range of up to 5,555 kilometers (3,451 miles), it is designed to compete head-to-head with its Airbus and Boeing rivals” (Jiang, 2015). This aircraft is trying to gain FAA certification so it could be flown in the United States, but COMAC is having a lot of problems with receiving this certification. They had problems with another aircraft that is making it harder to try to get FAA certification for the C919.

Chances are rising that the COMAC C919 will be largely limited to the Chinese market, as the manufacturer works toward local airworthiness certification while seeing no sure path to the desired FAA endorsement of the type. The problem emerged in 2011 and is still unresolved. Delays in COMAC's earlier program, the ARJ21 regional jet, are holding up FAA recognition of the certification competence of the Civil Aviation Administration of China (CAAC). That casts doubt on the FAA's eventual acceptance of the CAAC's current work on C919 and therefore the Chinese type certificate. Without Western airworthiness endorsement, the C919 cannot be sold in main commercial aircraft markets outside of China. (Perrett, 2013)

I think because of this, the COMAC C919 might have some issues getting FAA certification especially at first. I think not only the problems that were encountered with the ARJ21 regional jet, but the fact that COMAC is a new company and is just releasing its first large passenger aircraft is another factor as to why they haven’t received FAA certification. It might take some time, but maybe after some years, if the aircraft proves to be safe and can meet the standards for FAA certification, it could potentially be certified. “The FAA enjoys a good working relationship with CAAC and we continue to work together to develop a path to work towards certification of the derivative model of the ARJ-21 and, possibly, the C919. The FAA said it could certify an airplane after it enters service if it can be shown to comply with all relevant airworthiness and manufacturing standards” (Govindasamy & Miller, 2015). I think that it is possible that it could get certification, but it won’t be anytime soon because of how new the company and the aircraft are.

     If the C919 were to receive FAA certification, I think most of the challenges will come with public perception. A lot of people might relate this to the cheaply China made products that they purchase. A lot of people do not think that high of products that are made in China. I think another problem that comes with this is that people in China are not even sure if they support the new aircraft. “Chinese public reactions have seemed mixed online. While many express pride and support in an indigenous jetliner, others sound skeptical about the safety of an entirely made-in-China plane” (Jiang, 2015). If their own people are not sure that this aircraft is going to be safe, then how could other countries believe this. Safety is a big thing and it could be really hard for people to board an aircraft that is brand new. “Flyers want to fly on planes with a track record for safety, reliability and comfort. It takes decades to build that track record” (Zhang, 2015). I think for the public, the FAA will make sure that this aircraft is safe and has built the safety and reliability that the public wants to have. I think if the C919 were to receive FAA certification, this could pose problems if carriers decide to buy the COMAC C919 because the public may not want to fly on it which can lead to the loss of their customers. Another problem I see if the aircraft gets FAA certification is that if the C919 is cheaper than Boeing or Airbus, carriers may decide to purchase the C919. This could then lead to problems with not only their customers, but also the people they do business with. If a carrier has a good relationship with one of the manufacturers, but decides to stop buying with them, they could lose that relationship even if they decide to come back. They may lose the benefits that they had before. 

     COMAC was formed May 11, 2008 with its headquarters in Shanghai. “Commercial Aircraft Corporation of China, Ltd. (COMAC) is a state-owned limited liability company, which is formed with the approval of the State Council. COMAC functions as the main vehicle in implementing large passenger aircraft programs in China” (Introduction: About Us, n.d.).  COMAC has a mission of building large passenger aircraft that are cost effective but still safe and comfortable for their passengers.

    

     COMAC has manufactured two aircraft so far since being formed in 2008. “The C919 is COMAC’s second aircraft since the company was formed in 2008 by the merger of eight Chinese government-owned entities” (Zhang, 2015). These two aircraft are not the only aircraft that COMAC is thinking about producing.

Although the C919's maiden flight is at least a year away, its manufacturer, the state-owned Commercial Aircraft Corporation of China (COMAC), has already made no secret of its future plans to make another, wide-body airliner. The Communist government also wants to use the C919 as a springboard to develop a nationwide aviation industry, boasting the involvement of more than 200 companies, 36 universities and hundreds of thousands of personnel in the plane's development. (Jiang, 2015)

Not only do they plan on expanding on the types of aircraft they are making, but they also plan on upgrading their first aircraft they manufactured. “COMAC plans to eventually upgrade the ARJ-21 so it's closer in performance to regional jets made by Embraer (EMBR3.SA), Mitsubishi Aircraft (8058.T) and Bombardier (BBDb.TO)” (Govindasamy & Miller, 2015). COMAC plans on staying around and manufacturing many aircraft.

     I think if this aircraft were to receive FAA certification, I don’t think that other companies would enter the market as competitors to Boeing and Airbus. If COMAC were to get certified, it would take them a long time to actually become true competitors to Airbus and Boeing. These two companies have a record of their safety and reliability and the public knows they have been around for a lot longer. They have been around longer where the public would probably rather give up their control to a company that has years of records and data on their safety and reliability than a new company that doesn’t. COMAC doesn’t have a reputation yet to provide proof to the public of how safe their aircraft really is or could be. “COMAC will not only have to deal with its lack of a reputation in the industry — it will also have to overcome the stigma of being a newcomer” (Zhang, 2015). This can be a tough thing to overcome and if they do, it’s going to be a long battle especially if no other companies join the market. They will always be the newcomer and behind a lot of years in experience and reputation. I think that there is a lot of money, time, and effort that goes into joining this kind of industry where the competition is so high due to public perceptions, that many companies do not have all the resources to support themselves for a long period of time to be a competitor.

     One response I found was from John Leahy who is the chief operating officer of Airbus. “John Leahy said he believes COMAC will emerge as a serious competitor in the mainstream commercial aviation market over the next 20 years. ‘If you ask, are we worried about competitors in the next 10 years? The answer is no, not really. In 20 years, it's almost a certainty’” (Harjani, 2014). Another thing I found was that Airbus and Boeing were launching new versions of their A320 and the 737. “The C919's competitiveness in non-Chinese markets has long been questioned, especially since 2010-11, when Airbus and Boeing launched new versions of the A320 and 737 with engines the same as or similar to the CFM Leap 1 on COMAC's aircraft” (Perrett, 2013). I am not sure if Airbus and Boeing were launching new versions due to the introduction of the C919.

References

Govindasamy, S., & Miller, M. (2015, October 21). Exclusive: China-Made Regional Jet Set For Delivery, But No U.S. Certification. Retrieved from Reuters: http://www.reuters.com/article/us-china-aircraft-arj21-exclusive-idUSKCN0SF2XN20151021

Harjani, A. (2014, February 12). You May Fly On a Made-In-China Aircraft Sooner Than You Think. Retrieved from CNBC: http://www.cnbc.com/2014/02/12/you-may-fly-on-a-made-in-china-aircraft-sooner-than-you-think.html

Introduction: About Us. (n.d.). Retrieved from COMAC: http://english.comac.cc/aboutus/introduction/

Jiang, S. (2015, November 2). China to Take on Boeing, Airbus With Homegrown C919 Passenger Jet. Retrieved from CNN: http://www.cnn.com/2015/11/02/asia/china-new-c919-passenger-jet/

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

Zhang, B. (2015, November 3). China’s Answer to Airbus and Boeing Has Arrived. Retrieved from Business Insider : http://www.businessinsider.co.id/chinas-answer-to-airbus-and-boeing-has-arrived-2015-11/#.VvaxZ_krLIU