Friday, March 25, 2016

Competition to Boeing and Airbus


I personally do no think that the C 919 will ever receive certification by the FAA.  I don’t really see why the aircraft would get certified as we have a great American made company that airlines can choose from. Therefore the whole concept of “Made in China” may stop the certification right in its tracks if the company even tries. The push in the US as we all know is too buy American made products and bring jobs and companies back from China therefore I don’t think the American citizens would perceive our airlines flying these aircraft's.
If the C 919 would to receive certification in the US I would hope that they would not purchase the aircraft. I think public perception like I mentioned before, would be a big deal as the push is to buy American and support the economy. I personally think that I would try to avoid this type of aircraft, do the fact that it does come from China. I think it would be interesting to see how much they might sell the aircraft for, if they price it low enough that is what US carriers might go for.
COMAC is the acronym of the Commercial Aircraft Corporation of China, Ltd. According to the COMAC website, “COMAC is a state-owned limited liability company, which is formed with the approval of the State Council and jointly invested by State-owned Assets Supervision and Administration Commission. (Introduction)” Since this a state owned company it was built to support the Chinese carriers. Therefore Chinese carriers can purchase an aircraft that is made in their countries, instead of having to buy from Boeing and Airbus. The company has created another aircraft the ARJ21 which should begin flying sometime this year. The C 919 has not been a smooth ride which was supposed to be released this year. However the aircraft has had many setbacks and which could mean big problems for COMAC.  According to Scott Cendrowski, “that means after the delayed delivery, maybe in 2020, the C 919 will face even stiffer competition from Boeing and Airbus when they roll out new variants of their world’s best-selling planes in the 737 and a320. (Cendrowski)”
I think that if the aircraft would to get certification it would be possible that other companies may try and enter the market. Any company that would try and enter the market will probably wait to make sure other carriers expect those in China purchase the aircraft especially the US carriers. However do to Airbus and Boeing being so dominant in the industry and company will face stiff competition.
While researching this topic I could not find any direct response from Airbus or Boeing. I personally think there may not be a response from them because they do not see COMAC as a threat yet.




Resources
Cendrowski, S. (2016, February 16). China's Answer To Boeing Loses Shine. Retrieved from, http://fortune.com/2016/02/16/china-comac-c919-delay-delivery/
Introduction. (n.d.).COMCAC.  Retrieved from, http://english.comac.cc/aboutus/introduction/index.shtml


1 comment:

  1. While I agree the overall perception of not buying American products would hinder some of the possible sales of the Chinese aircraft. The overall lower price point would overcome this hurdle, and would result in numerous of these aircraft being purchased by American carriers. Additionally, when it comes to the passengers wishing to support American businesses, I believe there will be an ample number of potential customers who will over look that for the cheaper airfare.

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