After Covid, Plane Makers Are Even More Dependent on China
Airlines in the West expect to take years to recover from Covid-19 and aircraft manufacturers depend on the resilience and growth potential of the Chinese market. But China’s own aerospace ambitions and the geopolitical tensions that surround them could make it a turbulent ride.
With another 500 million Chinese expected to join the middle classes over the next few years, the country is also the industry’s big growth opportunity. China is especially important for the Boeing 737 and Airbus A320 families
The alternative, which Western companies fear, is that the narrow-body gap will be filled by the C919, made by Chinese State-owned manufacturer Comac. C919 is delayed and unlikely to enter service before late 2021, with limited initial production capacity. It is key for Beijing’s “Made in China 2025” industrial plan. This shouldn’t be underestimated, especially in the later half of the decade. The Chinese government can sell the plane at very discounted prices, and it owns a big chunk of the customers.
Source: WSJ #Dec31
https://www.wsj.com/articles/after-covid-plane-makers-are-even-more-dependent-on-china-11609429997?st=ylmcme3de4ljnug&reflink=article_copyURL_share
#AerospaceChina #Boeing #Airbus #China #C919 #COMAC
Airlines in the West expect to take years to recover from Covid-19 and aircraft manufacturers depend on the resilience and growth potential of the Chinese market. But China’s own aerospace ambitions and the geopolitical tensions that surround them could make it a turbulent ride.
With another 500 million Chinese expected to join the middle classes over the next few years, the country is also the industry’s big growth opportunity. China is especially important for the Boeing 737 and Airbus A320 families
The alternative, which Western companies fear, is that the narrow-body gap will be filled by the C919, made by Chinese State-owned manufacturer Comac. C919 is delayed and unlikely to enter service before late 2021, with limited initial production capacity. It is key for Beijing’s “Made in China 2025” industrial plan. This shouldn’t be underestimated, especially in the later half of the decade. The Chinese government can sell the plane at very discounted prices, and it owns a big chunk of the customers.
Source: WSJ #Dec31
https://www.wsj.com/articles/after-covid-plane-makers-are-even-more-dependent-on-china-11609429997?st=ylmcme3de4ljnug&reflink=article_copyURL_share
#AerospaceChina #Boeing #Airbus #China #C919 #COMAC
WSJ
After Covid, Plane Makers Are Even More Dependent on China
China has recovered from the pandemic to become the world’s largest domestic aviation market.