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  • China’s answer to Boeing and Airbus, the C919, takes first commercial flight | CNN

    China’s answer to Boeing and Airbus, the C919, takes first commercial flight | CNN

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    CNN
     — 

    China’s first large homegrown passenger jet made its inaugural commercial flight on Sunday, flying from Shanghai to Beijing, Chinese state news agency Xinhua reported.

    Flying as China Eastern Airlines flight MU9191, the new narrow-body C919 plane left Shanghai at 10:32 a.m. local time. It was welcomed with a water salute after it landed at the Beijing Capital International Airport at 12:31 p.m.

    After years of research and development, the launch of the C919 is seen as a pivotal moment in Beijing’s “Made in China 2025” strategy, which aims to boost local manufacturing, including by reducing reliance on foreign airplanes for its aviation sector.

    “The first commercial flight is a coming-of-age ceremony of the new aircraft, and C919 will get better and better if it stands the test of the market,” said Zhang Xiaoguang, director of the marketing and sales department of COMAC, in a Xinhua report.

    With a range of up to 5,555 kilometers (3,452 miles), the C919 will take on the world’s two major aircraft manufacturers, Airbus and Boeing. It will be a direct competitor to their A320 and B737 narrowbody jets, most commonly used for domestic and regional international flights.

    Built by COMAC (Commercial Aircraft Corporation of China) in China, the first C919 was delivered to China Eastern Airlines in December 2022 and in the months since has been put through a series of test flights.

    The single-aisle, twin-engined aircraft has 164 seats in a two-class cabin configuration consisting of business and economy seats.

    According to the 2022 Shanghai Science and Technology Progress Report issued by the Shanghai government, 32 clients had placed a total of 1,035 orders for the plane as of the end of 2022.

    Many of the plane’s major elements such as the nose, fuselage, outer wing, vertical stabilizer and horizontal stabilizer were designed by COMAC.

    However, the company enlisted Western companies to assist with some components. This includes the plane’s LEAP-1C engines, which were developed by CFM International, a joint venture between General Electric and French high-tech industrial group Safran.

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  • United places order for 200 Boeing planes, giving two troubled jets a vote of confidence | CNN Business

    United places order for 200 Boeing planes, giving two troubled jets a vote of confidence | CNN Business

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    New York
    CNN
     — 

    United Airlines placed a massive order for at least 200 Boeing planes on Tuesday, split between two models dogged by recent problems: the 737 Max and the 787 Dreamliner.

    It’s a crucial vote of confidence for Boeing, which took tens of billions of dollars in financial losses due to the problems with the two planes. The Federal Aviation Administration grounded the 737 Max for 20 months starting in March 2019, halting deliveries of the jets, after two fatal crashes that killed 346 people. The 787 was not grounded but the FAA halted deliveries for roughly a year due to quality control issues.

    Even beyond those problems, Boeing has been losing the competition with European rival Airbus on new orders, especially for single-aisle jets like the 737 Max. It has done better in competition for widebody plane orders, but has faced problems there as well, with delays for a new model of the 777, the 777X, and the halt in 787 deliveries.

    Later Tuesday Boeing reported that it had received orders for a total of 571 commercial planes through November of this year, net cancellations. So United’s order for 200 jets by itself represented 35% of the orders the aircraft maker had already reported for the year. But even adding those 200 jets doesn’t bring Boeing’s total near to the 825 plane orders that Airbus has booked, net its own cancellations.

    While neither United

    (UAL)
    nor Boeing

    (BA)
    would reveal pricing details, the list price of the jets total more than $37 billion. Even with the deep discounts typical of such purchases, the order will likely amount to tens of billions of dollars in sales Boeing

    (BA)
    desperately needs.

    United said the firm orders for 100 twin-aisle 787 Dreamliners, along with an option to buy 100 more, will represent the largest widebody jet order on record by any US carrier.

    “The Boeing team is honored by United’s trust in our family of airplanes to connect people and transport cargo around the world for decades to come,” said Stan Deal, CEO of Boeing’s commercial aircraft division.

    Shares of Boeing rose 3% in premarket trading, following the announcement.

    The 787 is a plane used primarily on long-range overseas routes. The model’s purchase represents United’s belief that there is pent-up demand for international travel, which has not bounced back as quickly as US domestic passenger demand over the last year. Some countries — notably China — still have strict restrictions on flying into the country, and some passengers are concerned about foreign travel.

    But United will take delivery of the planes over the course of the next 10 years, during which time any restrictions and concerns may become distant memories. And the first 100 Dreamliners it receives will replace retiring older 757, 767 and 777 jets already in United’s fleet. Some of those older planes date back at least 30 years.

    United’s options for 100 additional Dreamliners represents the company’s plans to expand its fleet and its reach into international markets.

    The significant order makes United the “flag carrier of the United States and the leading airline of around the globe,” United CEO Scott Kirby said Tuesday in an interview with CNN’s Poppy Harlow on CNN This Morning.

    “This is just the next step in that path to replace some of our older 767s that are at the end of their life, but also to create growth opportunities for years to come in the international network for years to come,” Kirby said.

    He also didn’t express any hesitation about ordering two Boeing planes that had trouble in the past, saying a “few tough years made [Boeing] stronger” and noting that United has always had a “great partnership” with the aerospace company.

    The order, while an important lift for Boeing, isn’t a total surprise.

    Airlines have a financial interest in sticking with the same model plane once they commit to it. The companies are able to save on pilot training and spare parts costs by populating their fleets with the same models.

    Unlike a driver who can seamlessly move between car makers, commercial pilots are limited to flying only the model on which they are certified. While United has some orders with Airbus

    (EADSF)
    , nearly 80% of its existing fleet is composed of Boeing jets.

    “We have a large installed base of 787s,” said Kirby when asked on a press call about potentially increasing purchases of a competing Airbus model. “The economics of bringing in another fleet type doesn’t make sense.”

    Boeing started taking orders for the Dreamliner in 2004, and United was one of its earliest US customers. It is made of a lighter-weight composite material than the aluminum used to build most commercial jets, giving it much better fuel economy and thus operational savings compared to the older planes it will replace in the United fleet. United has yet to decide how many of each of the three different models of the Dreamliner it will take.

    The 100 737 Max jets United is buying includes 44 planes for which it already had an option to purchase, and 56 new orders. In June 2021, it announced the purchase of 200 of the 737 Max jets, along with 70 competing planes from Airbus, in the largest aircraft order that United has ever placed.

    –CNN’s Jordan Valinsky contributed to this report.

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  • China’s answer to Boeing and Airbus isn’t as ‘homegrown’ as it seems. Here’s why | CNN Business

    China’s answer to Boeing and Airbus isn’t as ‘homegrown’ as it seems. Here’s why | CNN Business

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    Hong Kong
    CNN
     — 

    China is claiming a historic win this week after its answer to Boeing and Airbus, the C919, took to the skies for its first commercial flight.

    Beijing calls the aircraft its first large homegrown passenger jet. It’s a prominent symbol of Beijing’s broader “Made in China” strategy, a campaign to reduce national reliance on foreign manufacturers.

    But instead of boosting China’s global stature in technology innovation, experts say the C919 is a symbol of its continued reliance on the West.

    That’s because a large chunk of the plane’s parts come from foreign suppliers, predominantly in North America and Europe. Chinese state media has said about 40% of the model’s components are imported, though experts say the real proportion is much higher.

    While it is normal for manufacturers to source equipment for their planes from around the world, “the C919 is unique in that almost nothing that keeps it in the air is from China,” said Scott Kennedy, who spent two years leading a team that researched China’s decades-long efforts to develop its own commercial aircraft.

    Their conclusion? “The C919 is primarily a non-Chinese airplane with Chinese paint on it,” said Scott, trustee chair in Chinese business and economics at the Center for Strategic and International Studies (CSIS) in Washington.

    The C919 was built by the Commercial Aircraft Corporation of China (COMAC), a state-owned enterprise based in Shanghai, with the stated goal of letting “China-made large aircraft fly in the blue sky.”

    One cannot overstate how difficult that is, according to Shukor Yusof, founder of Endau Analytics, which tracks the aviation industry.

    Currently, only a handful of countries in the world make their own planes — and for good reason, he said, citing extremely high obstacles, such as serious technical expertise, rigorous regulatory requirements and eye-popping amounts of time and resources.

    The C919, for instance, has already cost an estimated $49 billion, according to CSIS, though it says pinning down precisely how much is an almost impossible task because COMAC’s finances are opaque.

    While it’s not COMAC’s first homegrown plane, more attention has been directed to this model because of its size.

    The C919 can seat up to 192 passengers and fly up to 5,550 kilometers (about 3,500 miles).

    COMAC’s first commercial plane, by comparison, is a much smaller regional jet called the ARJ21, which can only fly up to 3,700 kilometers (2,300 miles) and accommodate up to 97 passengers.

    COMAC is also working on a long-range, widebody plane called the CR929. But the project, a joint effort by China and Russia, has likely stalled since Russia’s full-scale invasion of Ukraine last year, said Kennedy.

    “That plane will probably never be more than a photo, never be more than a drawing,” he told CNN. “No one is going to be supplying technology to a Chinese-Russian joint venture.”

    The C919’s maiden commercial flight took place Sunday, flying passengers from Shanghai to Beijing for China Eastern Airlines

    (CEA)
    .

    China hopes the C919 will become its alternative to Boeing’s 737 and Airbus’s A320 and cement its status as a high-tech superpower, says Kennedy.

    But because the government has touted the aircraft as a homemade success, analysts have been quick to point out just how much is made outside China.

    In a 2020 analysis, CSIS estimated that approximately 90% of the C919’s main or large-scale component suppliers were from North America and Europe, with only 10% coming from China and other countries in Asia. Yusof cited a similar estimate.

    Kennedy said while it was possible the proportion had changed since the 2020 report, he thought it was unlikely given how tough it would be to change suppliers during the aviation certification process.

    The C919 got the green light for commercial service and mass production in mainland China late last year, after years of delays.

    The C919 passenger jet being welcomed on landing in Beijing on Sunday.

    China has acknowledged the criticism. “Some people have been questioning whether the C919 can be called a domestically-manufactured aircraft when it relies on imports,” Chinese state-run tabloid Global Times said in an editorial Monday.

    “It is true that there is a long list of foreign suppliers for the C919.”

    The aircraft contains “Honeywell’s

    (HON)
    electricity system and landing gear, GE’s

    (GE)
    flight recorder, CFM Leap’s engine, Parker Aerospace’s flight control system and fuel system, Rockwell Collins’ weather radar and simulate system, and Michelin’s

    (MGDDY)
    tires,” the outlet noted. All are US or European companies.

    The government’s position is that other manufacturers often rely on imports, too.

    Boeing and Airbus also depend on “high-quality global suppliers,” state-run newspaper China Daily said in an editorial Wednesday.

    America’s Boeing

    (BA)
    sources about 40% to 50% of components for planes such as its 787 Dreamliner from outside the United States, according to Yusof. Airbus

    (EADSF)
    , a European plane maker, also sources from countries such as Malaysia, he said.

    China has made no secret of its ambition for COMAC to eventually compete against Airbus and Boeing, which currently command virtually the entire market.

    Yusof said this was unlikely to happen anytime soon.

    For one, COMAC hasn’t distinguished its planes enough to convince carriers to make the switch. Its technology is “already available in the Airbus and in the Boeing planes,” he said.

    It could also take many years for its planes to be certified by US and European aviation regulators.

    But once production ramps up, it’s expected to win more orders at home, or in developing countries where carriers may not be able to afford the current market leaders’ prices. In Indonesia, domestic airline TransNusa became COMAC’s first overseas customer last year.

    “It should be greatly appreciated that another country apart from the Europeans and the Americans are providing an alternative aircraft in the commercial market,” said Yusof.

    But even if China were to price its planes more aggressively, it will take a long time to win people over, he added.

    “Airlines in the world will not be easily persuaded to buy one, because there’s always a stigma [with new players] whether you like it or not,” Yusof said.

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