manufacturing
For all the latest developments on the
ARJ21 programme, see
flightglobal.com/arj21
TAkIng On
ThE gIAnTs
Can China succeed in a market dominated by Western
airframers? Setting up infrastructure could take decades
by LEIThEn FRAnCIs
China is trying to become the
fifth major player in commercial
aircraft manufacturing,
but it is unclear whether the
“China-made” product can be a commercial
success.
No-one doubts that commercial aircraft
can be manufactured in the country,
but whether its aircraft can succeed
against established players such as Airbus,
Boeing, Bombardier and Embraer
is another question.
The newly formed Commercial Aircraft
Corporation of China (Comac) is
spearheading the initiative. This Shanghai-based
company is headed by two political
heavyweights – chairman Zhang
Qingwei and president Jin Zhuanglong.
Zhang was previously minister of
China’s Commission of Science Technology
and Industry for National Defence
and Jin was a vice-minister. Both
men are credited with managing China’s
successful space programme,
which in September 2008 put the first
Chinese astronauts into space.
Zhang is higher on the political ladder
than Lin Zuoming, China Aviation Industry
Corporation’s president, and Comac
was formed in May 2008 by taking key
businesses from AVIC. These were AVIC I
Commercial Aircraft (ACAC), Shanghai
Aircraft (SAC) and aircraft design outfit
First Aircraft Institute.
ACAC is responsible for China’s
ARJ21-700 regional jet programme. So
far three ARJ21s have been built for the
test programme and six test aircraft will
be built, including one for fatigue testing
and one for static testing. ACAC has
recently transferred an ARJ21 to the national
flight test centre in Xian.
ORDER CLAIM
The company claims to have orders for
more than 200 ARJ21s, but some are letters
of intent or memoranda of understanding.
Its largest customer is Shenzhen
Airlines’ Kunpeng Airlines, which
on 21 December 2007 – during a nationally
televised roll-out of the ARJ21 –
signed a firm order for 50 ARJ21s with
options for 50 more. In March, Kunpeng
disclosed that it will be the launch operator
of the ARJ21 and is due to receive its
first ARJ21 by the end of 2010.
The launch customer was to have
been Shandong Airlines, which has a
firm order for 10 aircraft, but it has delayed
getting ARJ21s. A new timeframe
for delivery has yet to be determined.
GE is supplying CF34-10A engines for the ARJ21
There are also doubts over Shanghai
Airlines’ order for five ARJ21s now that
China Eastern Airlines is taking over
the smaller Shanghai carrier. China
Eastern has a mandate from the government
to do whatever it takes to be profitable,
even if it means delaying or cancelling
aircraft on order.
Shenzhen Financial Leasing has a
flightglobal.com/asianaerospace
firm order for 20 and GE Commercial
Aviation Services has ordered five. But
Shenzhen Financial Leasing in 2000
ordered 60 Xian MA60s, although received
only a handful because it was
unable to find customers for the aircraft,
particularly in China.
It is unclear whether Shenzhen Financial
Leasing and GECAS can find
customers in China for the ARJ21 because
of the impediments that inhibit
the growth of regional aviation in the
country. Today there are about 1,300
commercial aircraft in China, but only
110 are regional aircraft, accounting for
7-8% of the total commercial fleet. In
the USA and Europe regional aircraft
account for 43% and 36% respectively.
Beijing has told carriers that there
needs to be more air services in western
China and other remote regions. Governments,
particularly provincial governments
in these remote areas, have been
offering subsidies to those that operate
on new regional routes, but the carriers
appear slow to take up the offer.
An analysis by Embraer China, using
10 8 SEPTEMBER 2009 | FLIGHT DAILY NEWS
General Electric
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