Chinese jet wins first 100 orders

Zhuhai: Commercial Aircraft Corp of China announced its first 100 C919 passenger-plane orders, breaking Airbus and Boeing Co's stranglehold on the world's second- largest aircraft market.

General Electric Co's leasing arm and China's big three domestic airlines are among customers for the narrowbody plane, state-controlled Comac said in a statement issued at the Zhuhai air show in southern China yesterday. Chinese airlines accounted for more than half the orders, said Zhang Xinguo, vice president of Comac shareholder, Aviation Industry Corp. of China.

Comac has a full-sized model of the front section of the aircraft on display at the show as it challenges Boeing's and Airbus' grip on a domestic plane market that could be worth $480 billion (Dh1.76 trillion) through 2029, according to Boeing. The Chinese planemaker expects to sell more than 2,000 C919s worldwide over 20 years, competing against Boeing's and Airbus's most popular jets.

"The aircraft is of national importance," said Harry Chen, a Shenzhen-based analyst at Guotai Junan Securities. "But, as it's only on the drawing board so far, we still have to see how fuel-efficient and less expensive it really is."

The C919's Chinese customers include Air China, China Southern Airlines, China Eastern Airlines, HNA Group Co and CDB Leasing Co, according to the statement. It didn't say how many planes had been ordered by each customer.

Air China's head of investor relations, Rao Xinyu, and China Eastern spokesman Li Jiang declined to comment. Calls to China Southern's joint board secretary Xie Bing went unanswered.

Maiden flight

The C919, which has 166 seats in its standard version, competes with Boeing's 737 and the Airbus A320. The plane is scheduled to make its maiden flight in 2014 before entering service two years later.

GE Capital Aviation Services, the world's largest plane lessor, also announced an order for as many as 25 China-made ARJ21 regional aircraft at the last Zhuhai air show in 2008, as GE seeks to boost sales in the world's fastest growing major economy. The 70-seat ARJ21, China's first regional jet, is due to make its maiden exhibition flight at this week's show.

China first announced plans for the C919 in 2008 to help develop a globally competitive aerospace industry and pare its reliance on imports. The nation will trail only the US in plane orders over the next 20 years, according to Boeing.

"There's certainly enough pie locally to keep Comac and their partners busy for a long time," said Derek Sadubin, chief operating officer at industry consultants, Centre for Asia- Pacific Aviation in Sydney. "It does remain to be seen whether the aircraft does sell overseas."

Comac is working with overseas suppliers on the C919, including CFM International, a venture between General Electric Co. and Safran SA that has won a $10-billion engine contract.

Other suppliers include Honeywell International, United Technologies and Parker Hannifin. China's economic growth has stoked demand for aircraft and boosted its importance in the global aviation market.

Air China, China Southern and China Eastern are all among the world's four largest carriers by market value. China Southern is Asia's biggest by passenger numbers.

Nationwide passenger numbers may jump fivefold in the 20 years ended 2029, AVIC, the nation's largest aerospace company, said yesterday.