China wants part of the pie in the sky
The fact that large jumbo jets are almost exclusively designed and built by Airbus and Boeing is not a matter of simple chance. It’s a business that requires massive resources and experience. Not even Japan dares enter that arena -it prefers components or small aircraft. China however has now decided to enter the commercial jet business and to build planes with more than 100 seats.
China commercial Aircraft Co. has been set up exactly for this purpose, its main shareholders are the central government, the Shanghai government and China Aviation Industry Corp. I & II which were separated from the state owned aviation industry.
Competing with Airbus and Boeing is going to be tough, but the Chinese company is banking on the fact that its domestic market is massive and according to predictions will grow five times by 2026. If China Commercial Aircraft Co. manages to get a chunk of its home turf, it will be an ideal launch pad for the world market. Of course, aircraft development needs its time, and whenever the first models fly, they will meet fearsome competition from cheap Russia models which are coming back in leaps and bounds.
One obstacle for the whole commercial aircraft industry will definitely be the demand for less polluting flights. Anticipated growth of tourism and related flights can well offset any progress achieved by green energy production and transportation. So expect a bumpy ride with or without China Commercial Aircraft Co…
[Wired]
[...] Posted by Dimitrios Matsoulis on May 13, 2008 The fact that large jumbo jets are almost exclusively designed and built by Airbus and Boeing is not a matter of simple chance. It’s a business that requires massive resources and experience. Not even Japan dares enter that arena -it prefers components or small aircraft. China however has now decided to enter the commercial jet business and to build planes with more than 100 seats. (continued) [...]
May 13th, 2008 at 08:26