Boeing and Airbus face new risks to their global dominance. A Chinese competitor to Western aircraft manufacturers made its international debut at the perfect time at the Singapore Air Show on Sunday.
Boeing has faced some problems with its 737 MAX family of aircraft, while its planes and Airbus’ A320 narrow-body jet are mostly sold out for the remainder of the decade. This leaves the door open for competitors.
This is where China comes into play. The country’s C919 jet flew for the first time outside Chinese territory to appear at the Singapore Air Show, and later conducted a flyby at the event. The aircraft is manufactured by the state-owned Civil Aviation Corporation of China (COMAC).
Boeing won’t have commercial aircraft on display at this year’s show, but Airbus will.
China faces a long runway and an uphill battle to seriously challenge the Boeing-Airbus duopoly, but it has to start somewhere. There are only four C919s currently in service, operated by China Eastern Airlines. The airline also has around 370 narrow-body aircraft made by Airbus and his 140 made by Boeing.
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However, there are signs that the aircraft’s presence may increase. Last September, China Eastern Airlines ordered 100 more C919s worth about $10 billion. The Chinese government also wants European approval, and the Civil Aviation Administration of China (CAAC) announced last month that it would work with the European Union’s aviation safety agency to make it happen this year.
Initially, however, COMAC will pose a greater threat to China’s Boeing and Airbus.
China has been a difficult situation for Boeing in recent years, but the situation has been improving recently. In January, Chinese airlines took delivery of their first 737 MAX since 2019. Barons Previously reported. The five-year suspension followed two fatal crashes in 2018 and 2019.
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It is an important market for the industry. Boeing predicts that China will account for 20% of global aircraft deliveries over the next 20 years, and says the domestic aviation market will become the world’s largest during that time. The company estimates that China’s domestic market will meet demand for 6,470 single-aisle jets, including the 737 MAX family, by 2042.
Boeing’s problems have been piling up so far this year. The company’s MAX 9 jets were grounded for three weeks earlier this month after a door panel flew off mid-air during an Alaska Airlines flight. The US Federal Aviation Administration also canceled plans to increase production of Boeing’s 737 MAX aircraft. The aircraft manufacturer’s MAX 7 and MAX 10 jets still need to be certified by the FAA, raising the possibility of delays for several airlines that have ordered the planes, including United Airlines.
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If ever there was a time for competitors to mount a serious challenge to Airbus and Boeing, it’s now.
Email Callum Keown at callum.keown@barrons.com.