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AEROSPACE
China unveils jet at Asia's biggest air show
by Staff Writers
Hong Kong (AFP) Sept 8, 2009


The jet, which according to state media will be ready for service in 2016, is part of China's long-term plan to break the duopoly of Airbus and Boeing in the production of large commercial aircraft.

China's largest home-produced commercial jet makes its international debut at Asia's biggest air show on Tuesday, in a demonstration of the country's ambition to be a global aviation giant.

An arm of the state-owned Aviation Industry Corp of China (AVIC) is to unveil its C919 in Hong Kong, with some observers hailing the moment as proof the fast-rising Communist country has arrived in the industry.

"It's the first time that China has put a face in front of the global aviation industry," said Richard Thiele of Reed Exhibitions, which has organised the Asian Aerospace International Expo and Congress, starting Tuesday.

The jet, which according to state media will be ready for service in 2016, is part of China's long-term plan to break the duopoly of Airbus and Boeing in the production of large commercial aircraft.

The first "9" in C919 was chosen because in Chinese the number sounds like a word that means "long time," while "19" reflects the fact that China's first large aircraft will have 190 seats.

The plane was built by state-linked Commercial Aircraft Corporation of China (COMAC), one of at least 11 Chinese companies -- from suppliers to aircraft management firms -- making its debut at the expo, according to Thiele.

It is no coincidence the event is being held on Chinese soil.

The three-day biennial meet, hailed as one of the world's most influential air shows, was moved from Singapore to Hong Kong in 2007 to be closer to mainland China, now seen as the world's fastest growing aviation market.

Thiele, Reed's head of sales for aerospace and aviation, said despite airlines worldwide being hit badly by the global economic downturn, 10,000 visitors and 356 firms are expected to take part in Asian Aerospace.

Lin Zuoming, president of AVIC, told the media last year that their goal was to realise 1,000 billion yuan (145 billion US dollars) of revenue sales by 2017 and be close to becoming a world-class aviation industry player.

Much of that business is expected to come from domestic demand -- as China's economy booms, more of its people can afford to take holidays and its airlines will need more planes to get Chinese passengers to their destinations.

Chinese media reports have estimated that the country's airlines would need a total of 1,600 new passenger jets by the year 2020 and 3,000 by 2050, at a cost of hundreds of billions of dollars.

However, while the state-sponsored Chinese companies might have the determination and the budget to compete with Western aviation titans, some industry experts believe the path to global dominance will be challenging.

Martin Craigs, president of Aerospace Forum Asia, a non-profit group to advance awareness of the aerospace business, said aircraft manufacturing required a highly complex integration of technology and good marketing.

"It would be naive to think that it's going to be simple," he told AFP.

"Airlines are hyper-sensitive to operating costs, fuel efficiency and life-time maintenance support when choosing aircraft. They need certainty and no political, technological and commercial risks."

Andrew Herdman, director general of the Association of Asia Pacific Airlines, a Malaysia-based trade organisation for the region's carriers, said it was not realistic to think Chinese airlines would automatically buy home-made jets.

"Chinese airlines, when deciding whether to buy from Airbus, Boeing or other aircraft manufacturers will weigh the factors up dispassionately," he said.

A less risky alternative for China would be to invest its resources into the research and development of aircraft components and parts, he added.

He also warned that, while the backing of the state gives firms such as AVIC financial clout, it could also put off some buyers.

"The history of national aircraft ventures with political goals inherent in their projects is not something that seem to be taken up by consumers," he said.

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AEROSPACE
Airbus says corporate jet sales will rebound next year
Hong Kong (AFP) Sept 3, 2009
European aviation giant Airbus said Wednesday it expected sales of its corporate jets to rebound next year on the back of the fast-growing Chinese market. Francois Chazelle, vice-president of executive and private aviation at Airbus Middle East, said more Chinese billionaires would consider buying their own corporate jet as a more convenient option to travelling commercially. "We do see ... read more


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