Boeing’s China orders ‘likely to be affected’ with home-grown C919 passenger jet set for certification.
- Reports in China suggest the home-grown C919 narrow-body passenger jet could be certified as early as Monday, having been in development since 2008
- Single-aisle C919 has been built by the state-owned Commercial Aircraft Corporation of China to compete with Boeing’s 737 and Airbus’ A320
Boeing’s return to the critical Chinese market may face another stumbling block, analysts said, after local media reported that China’s home-grown C919 narrow-body passenger jet could be certified as early as Monday.
The China Times newspaper reported on Tuesday that the C919, manufactured by the state-owned Commercial Aircraft Corporation of China (Comac), will receive certification from China’s aviation regulator at the start of next week, citing unnamed sources close to the Shanghai-based manufacturer.
Yicai news service also reported on Tuesday that the C919 will be certificated “as soon as this month” with China Eastern Airlines set to receive the first delivery “within the year”, without citing any sources.
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Comac and the Civil Aviation Administration of China (CAAC) did not respond to faxed requests for comment on the media reports.
It is significant in its local market where it is likely to displace Airbus and Boeing sales, but this will be extremely difficult to replicate globally –
Certification by the CAAC would pave the way for Comac to start delivering its C919, which has been in development since 2008.
The single-aisle C919 has been built to compete with Boeing’s 737 and Airbus’ A320, and despite a series of delays, the anticipated certification represents a key step for the domestic market in China.
“It is significant in its local market where it is likely to displace Airbus and Boeing sales, but this will be extremely difficult to replicate globally,” said John Strickland, director of aviation at consultancy firm JLS Consulting.
Boeing’s business in China has been caught in the growing rift between Beijing and Washington since 2018.
“Ultimately Boeing orders in China are likely to be affected by the C919, but I think political relationships will play a more important role,” added Strickland.
The C919 is a key symbol of China’s ambitions to muscle into the trillion dollar global jet market, but many of its components are imported, with US companies accounting for most of the top suppliers.
Debt owed by Chinese carriers grew by an average 11.9 per cent to 82.2 per cent this year compared with the average debt level before the coronavirus pandemic.
China’s travel industry is also under pressure, with the number of domestic tourism trips taken during the recent three-day Mid-Autumn Festival holiday down by 16.7 per cent compared to a year earlier and by 27.4 per cent compared with the pre-pandemic levels in 2019.
Source: China Macro Economy
