China's first large jetliner has Boeing, Airbus in its sights

Experts see the rollout as China’s bid to enter the booming global aviation industry and reduce dependence on Airbus and Boeing. 

“China’s air transport industry cannot completely rely on imports,” Li Jiaxiang, the country’s civil aviation chief, said recently. “A great nation must have its own large commercial aircraft.” 

Air & Space magazine reports that the airliner boasts the most up-to-date technology, with the same engines as the latest Airbus and Boeing models. Comac claims to have already received impressive orders totalling more than 500 aircraft from around 20 companies.  

This is a remarkable achievement for China. With the C919 airborne, China’s economic powerhouse continues to expand its high-end manufacturing sector and cut down its reliance on churning out cheap products as part of its economic restructuring. Beijing reportedly aims to make “strategic emerging industries” – which include high-end equipment manufacturing – account for 15 per cent of GDP by the year 2020. The C919 initiative, since its launch in 2008, has given birth to 16 joint ventures that supply the different parts and systems for the airliner. Honeywell Aerospace, one of the world’s largest manufacturers of aircraft engines and avionics, has two joint ventures in China building the airliner’s flight-control system, wheels and braking system. (Of course, the C919 has had to rely on foreign companies as well).

Ventures that were created specifically for the C919 are also catering to aircraft companies outside China.

Statistics show fast-growing markets for the aviation industry, and China is leading the pack in the projections. The International Air Transport Association (IATA)’s latest 20-year passenger growth forecast revealed that China is set to overtake the US as the fastest-increasing market by 2034. According to the forecast, the five fastest-growing markets by 2034 will be China (856 million new passengers), the US (559 million), India (266 million), Indonesia (183 million) and Brazil (170 million). With such a massive domestic market, Comac probably doesn’t even have to eye the international market in order to make profit. 

Although China has limited know-how in commercial aviation – nearly all of its experience lies with military aviation – the C919, which plans to enter airline service in 2018, represents a learning curve that could boost China’s confidence and ambitions in the sector. Comac is set to start working with Russia’s United Aircraft Corp on producing a wide-body passenger jet by the end of this year. (Currently, Airbus and Boeing are the only manufacturers of such aircraft.) According to Boeing estimates, in the next two decades demand for wide-body aircraft worldwide will rise to more than 8,000, with 1,500 needed to service Chinese skies alone. Russia, with decades of experience in the aviation industry, could be a useful partner in this regard. Furthermore, Russia and China plan to compete with Airbus and Boeing separately in the market for 100-seat-plus jetliners, the largest segment in the industry. 

Meanwhile China’s “One Belt One Road” (OBOR) strategy is also set to gain a boost as aviation slowly enters the picture. Aviation will help facilitate trade among nations in the OBOR region and thereby increase the country’s economic capacity. China plans to invest around 200 billion yuan (Bt1.1 trillion) in civil aviation projects linked to OBOR, comprising the land-based new “Silk Road” and “Maritime Silk Road”. In the last two years, China has built 15 new airports and expanded 28 existing ones to serve burgeoning domestic demand. 

President Xi Jinping has said aviation could be crucial to speeding up the implementation of OBOR as the infrastructure needed for air travel can be built faster and at a lower cost. 

Despite concerns over economic risks and safety, Beijing shows no sign of curbing its momentum in aviation development, which has enormous potential to generate economic and employment opportunities. By banking on the increasing profitability of the aerospace industry, China is set to expand both its global footprint and influence in the region.