China delivers its first C919 jet, challenging Airbus and Boeing

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After 14 years of development, the Commercial Aircraft Corporation of China, better known as COMAC, delivered its first domestically-developed passenger jet to launch customer China Eastern Airlines (NYSE:CEA). The C919, similar to the Airbus (OTCPK:EADSY) A320 and Boeing (NYSE:BA) 737 narrow-body jet families, brings China a step closer toward its ambitious goal of becoming a global civil aerospace player. The plane is expected to make its maiden commercial flight in the spring, with a trip between Shanghai and the capital Beijing, as well as hopes to quickly expand routes to other cities.

Industry response: "Congratulations to COMAC for delivering the first C919, bringing a new model to the global civil aviation market," Boeing (BA) China wrote on its WeChat account. "We look forward to working with COMAC and other industry peers to continue working on the long-term sustainable development of the aviation industry," Airbus (OTCPK:EADSY) added in a statement.

China's first national passenger jet contains 164 seats, with a maximum range of 3,450 miles. The C919's price tag also comes in at $99M, compared with costs of around $111M and $122M for similar-sized Airbus (OTCPK:EADSY) A320neos and the Boeing (BA) 737 Max family. In terms of backlog, COMAC has already booked 1,115 orders (mostly from Chinese lessors) versus the 6,200 and 3,590 order backlog for the A320neo and 737.

Outlook: Despite the emerging C919, it will take many years before COMAC becomes a serious threat to the Western aerospace duopoly. Besides finding new customers outside of China, the program is expected to produce only 25 C919s per year by 2030, which is way lower than the monthly narrow-body production rates at its rivals. The C919 also relies heavily on Western components, including engines, flight systems and other critical parts that are manufactured by companies like GE (NYSE:GE), Honeywell (NASDAQ:HON) and Safran (OTCPK:SAFRY).

Comments

[SpliffMeister]

They also make military planes. How's their sales of those doing? Poorly I hear...

[TooEasy]

Douglas taught the Bolsheviks in Russia and the Red Chinks at the behest of the RobChilds to build airframes, 75 years later they still can’t build reliable engines. Everything but the structure is western made.

[KCphaeton]

Sadly, Boeing was foolish enough to build a plant in China to do finishing of their products. They should’ve never done that. The Chinese probably will never take delivery of all the bowling planes sitting on the ground in Washington. Boeing needs to find new buyers for those planes and sell them. Cut the Chinese off and finish their experiment with a Chinese factory.

[my_symphony2003]

@KCphaeton you want to rely on the woke folks to build airplane in USA?

[John Hampton]

Designs copyed from Boeing and Airbus, no less?

[jack2012]

@John Hampton What a surprise.

[billtxxus]

@John Hampton I remember being in the Soviet Union in the 1980s. Their planes looked exactly like US planes. They had the 727-ski, the 737-ski and the DC10-ski. Everything was the same, inside the seats, the switches, the galleys, everything, and if you were in the toilet you could not have known the difference unless you looked at the signage.

We were just hoping they stole ALL the plans, and werent missing a few key pages.

[Wilbodave]

Headline says, "...challenging Airbus and Boeing"

Text says, "...it will take many years before COMAC becomes a serious threat to the Western aerospace duopoly. "

Which is it?

[Wellington999]

@Wilbodave They hope to have their own engines in 3 years..that will be the time the production really ramps out...aerospace is extremely important to the Chinese..their TV channels are full of images of rockets, the space station...fighter jets etc...

[Harsh Truth]

Beginning of the end of the monopoly of Boeing and Airbus, more choice for the customers particularly for developing countries of Asia, Africa and Latin America.

[Mark5463]

@ckbn They would have to substantially increase their production capacity in order to be able to compete with Airbus and Boeing even in the used aircraft market. An end to that duopoly is unforeseeable at the current time.

[umfan001]

Wow of course its for China Airlines as no one else will buy it.

[billtxxus]

I think the key comment here is that in eight years, they may have the ability to make in a year, what Boeing and Airbus make in a month. This plane is similar to the Boeing 737, the 737 was launched in 1967, so how far would one guess China is behind Europe and the US for commercial plane design and assembly?

Makes sense they eventually can build planes, just like anything else. It just takes time and money to learn the technology.

[kata]

Is Xi going to use it first?

[D. Rockefeller]

China just keeps getting stronger and bigger on the global stage. Xi signed 12 agreements with the Saudis and was there Wednesday while US senile fraud Biden got the cold shoulder and that was after Saudi Arabia wouldn't even take Biden's phone calls. Saudi state TV even had a skit making fun of senile Joe and the idiot VP Harris. This is important because of the long term relationship going back to 1971 creating the "Petrodollar" in which Saudi Arabia agreed to only sell their oil for US Federal Reserve Notes(the Silver Certificate dollars had just ended) The COMAC 919 uses the same engine as the Airbus and Being 737 Max disaster plus all the same subassemblies. China a makes loads of planes and also military planes and missiles having been handed all our technology or stealing it. I mean you had HW Bush and his family moving there in 1973 during the Vietnam "war" as "envoy" which the American people didn't know about. "China's best friend" they called him and even backed the Pol Pot regime in Cambodia to take out the Buddhists and Royals in both Laos and Cambodia which are Chinese proxy states today. All the American "elites" fell over backwards handing the Chinese as much technology, industry and manufacturing as they could. Of course this was at the horrible expense of millions of US workers and numerous cities tax bases etc. which they cared nothing about. Today China owns our top politicians and elites and takes the long view unlike politicians in DC only worried about their next "election" or the size of the check from those "lobbying" groups surrounding the cesspool of the Beltway. The American people no longer have any voice whatsoever in their "government" and are helpless against any of this it seems. Tulsi Gabbard quit and she had been Vice Chairman of the Democratic Party until she discovered how corrupt the whole system had become. She stated publicly that DC politicians didn't represent the American people at all and I guess only money is what they respond to.
So for individuals I guess we have to try and think for ourselves and invest accordingly. Gold is an element humans cannot create like paper, digital crypto BS, or whatever BS system humans devise. All Central Banks only hold gold bullion in their vaults which everything else is a derivative off of. Ultimate insurance for all of finance I guess. The US dollar is still mostly the world reserve currency used to settle in most commodity trading largest being oil. Over time I imagine this will diminish since China is by far the largest "economy" on earth and has over 70% of manufacturing and engineering. their currency would have to reflect this on the global stage after awhile while the USA has covered the shift since the 1970's issuing Debt-US Treasuries.
I look at global suppliers of basic materials like BHP, Rio Tinto, Vale, etc. and like Rio and BHP the best. They actually make real money and pay real dividends and are vital globally. I would buy their bonds when rates top out and also Walmart-largest company on earth in revenue and private employment. Food is another area although mostly private-Cargill and CHS a COOP although CHS issues preferred stock paying good rates. Conagra, ADM, General Mills, Hormel,etc. might also be good places to look at. Possibly Pepsico, Coke, Krogers, and other peripheral players too. No matter what your race political creed, religion or belief system everyone has to eat. Even Carlo Gambino had to eat and he ran the Mafia in America even being an illegal alien all his life. He had a great funeral too with thousands attending and not one bad word was spoken about him. After Carlo died the Mafia either went corporate or killed itself off mostly like Angelo Bruno being killed by his Caporegime and then him getting tortured and dumped while lower level snakes whacked each other all over the place. Today using the corporate model like everyone else they're making a killing but all nice and legitimate like everyone else. Navient Corp with the student loans? Humana and Matrix with the health insurance advantage plans? Geez! Looting CMS Medicare Trust Fund and the programs LBJ stuck in for regular Americans? You betcha and they even got Congress to set the interest rates and make sure they couldn't declare bankruptcy like GM did or any other corporation. Casinos? Geez, legalized all that and set up the REIT model to extract the cashflow as Ceasars, MGM, etc. went bankrupt and Adelson sold all US holdings before he died and got buried in Israel. All in on Asia like Jim Rogers who sold out of NYC and moved to Singapore where the Sands has the Marina Bay Sands. Rogers was running the Quantum Fund with George Soros down in the Caribbean the largest most successful hedge fund. It wasn't just HW Bush who went all in on China and Asia it was everyone thought history from the Spainish Empire going back to the Venetians who used the Ottomans as muscle. All the dumb moves by the USA trying to slow this down are only hastening things downwards and like England and the British Empire that died the USA is having "problems" as it dwindles. Hydrogen should be ramped up however I think it will be China and Saudi Arabia taking the lead more which is sad. The USA doing all these dumb military moves is only helping the process move faster. The things I see going on in America today are insane compared to growing up in the 1950's although we had problems back then too.
You need energy, shelter, food, water, etc. and these are what I'd concentrate on for investing plus maybe a little gold just in case. I like bonds better than common stocks because they pay out more and have higher priority legally.

[jack2012]

@D. Rockefeller Got to be one of the longest and best comments on SA I have seen. Many thanks.

[RWilliam]

@D. Rockefeller unfortunately the globalist started seizing our government, which isn’t ours it’s there’s, over 100 years ago with the pilgrim society. en.wikipedia.org/...

Super nationalist organization like UN or the WEF train future leaders for their globalist masters, they move in and out of government and corporations. Play by the rules you’re enriched by a non for profit job, university job, etc.

The lawyer for twitter was a dem lawyer and dem operative, he handled the frame work for what was filtered and was pushed a truth. Eat your gmo, enjoy your vaxes, your real life and digital life will merge you’ll own nothing and your be happy.

[umfan001]

@D. Rockefeller Yes we all know George Soros is a great Nazi rat who sold his own people out in Hungary during WWII and there is an arrest warrant for him there if he sets foot in the country. His opens border society works on destabilizing conservative western governments and turning those countries into cesspools.

[Rondayvous]

Nothing helps a country build an air force faster than having a domestic aircraft builder. Having access to leading edge components makes it easier to reverse engineer them. Don’t worry about those things though, there are short term profits to be made!
I don’t worry about a lack of quality, I worry about it’s presence..

[MoneyPig]

@Rondayvous

China makes domestically the engines in their fighter jets. Military engines operate at higher temperatures and are likely technically more complex to produce than commercial engines. They have the materials technology.

However, commercial aviation is heavily regulated to the advantage of US/European makers. This is why you don't see any Chinese aftermarket parts. This may change that. So, it's bearish for US aviation parts makers. Aviation is a top export for the US.

Who knows how this will go. But if these planes are proven safe, they will have domestic acceptance in China and could next gain market share in Asia. We won't likely ever see United or Southwest flying Chinese planes here.

Now, we have to wonder how Biden will block this cross trade in Asia. The US has become the anti-trade nation. These are just trends I see.

[SingleMalt11]

@MoneyPig Your statement about military engines vs commercial engines is misleading and a somewhat apples to oranges comparison. A modern GE commercial engine has significantly more advanced technology on it than the typical jet engines China uses on their fighter jets. It is just that they are built for different requirements and with differing technologies.

[wizwor]

China delivers its first C919 jet, cloning Airbus and Boeing

Fixed that title for you!

[LexiAlex]

@wizwor you think it’s that easy, why don’t more do that?

[wizwor]

@LexiAlex It costs a LOT of money to grease the palms that have to look the other way. China has that cash and they are tight with Hunter.

[mkkby]

The negative comments look similar to what I remember from airbus start. But after about 20 years they achieved 50% market share with boeing. Love or hate china, this trend is unstoppable. Once quality is comparable airlines will jump at 10-20% discount.

[jz10]

@mkkby This particular version can't be discounted too much because it uses EU/US components pretty heavily, there is not that much room to discount. The thinking 15 years ago was that by letting EU/US firms profit from this plane, it would incentivize EU/US governments to approve this plane for flight in their territories.

There are Chinese replacements for all the major foreign components in the pipeline. If this plane isn't approved for flight in EU/US after a couple of years, I expect that completely domestic version to be the one that is mass produced in the end. There will be significant room for discount once that version is available.

[jack2012]

@jz10 Any chance they could initially be approved to fly to the US but not over ? Make a U-turn in LA or Seattle , for example, and go back.

[Luftmann141]

@jack2012 you would not fly a narrow body from China to LA or Seattle

[newbienik]

Trash Boeing 787 Max crashed twice in like two months and these angry white bois talking trash about China

LMAOOO pure comedy

[BlueHorseShoes]

@newbienik CCP racism has entered the chat.

[Luftmann141]

@newbienik what is a 787 Max? Never heard of it.

[braticus]

I'm sure it's quality is on par with most Chinese goods. Definitely waiting a few years before getting on one

[Harsh Truth]

Next sales of planes is coming, buy five get one free.

[Booban]

“We look forward to working with COMAC and other industry peers to continue working on the long-term sustainable development of the aviation industry," Airbus

- and thats what you get all you stupid western companies who gave away all your tech to China. When are our backstabbing politicians going to put a stop to this.

[Michael Rogus]

I'm not flying on a Chinese jet

[my_symphony2003]

@Michael Rogus got money?

[wizwor]

@Michael Rogus I'm not flying on any plane.

[Elopsson]

Greed at Boeing did this.

[metalhead]

@Elopsson Boeing is done in China - stick a fork in 'em.

[akctlc]

@metalhead China needs 8500 new planes by 2040 75% of which are wide bodies. Production of this first run 'narrow body' plane is expected to reach 25 units per year beginning in 2030. Boeing good to go in China for 30+ years minimally.

[metalhead]

@akctlc I should have been more specific. The Boeing MAX is done. Wide bodies such as the 787 may still be in play. Depends on US policy and how much hardball Xi wants to play.

[KKing]

What is the estimated ttme to first crash?

[PonziPat]

@KKing It needs to do it in under 18months to beat the 737 MAX

[jack2012]

@KKing A new travel term...Add ETC to ETA.