http://www.bizjournals.com/seattle/...to-chinese-jetmaker-in.html?ana=yahoo&ref=yfp
A non-Chinese airline will replace its
Boeing (NYSE: BA) jets
with Chinese-built jetliners, an ominous sign for a U.S. company that sees China as its largest single future market.
Thailand-based City Airways, a small-but-growing regional airline based in Bangkok, this week signed a deal for 10 Chinese-built C919s to replaced the two leased 737-400s it now operates.
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These Boeing-built City Airways jets, here at a Thai airport, are to be replaced by…
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PHOTO BY ALEC WILSON WIKIMEDIA COMMONS
The company also ordered 10 ARJ21 regional jets. Both are built by the Commercial Aircraft Corporation of China, or COMAC, a government-funded company that is
working to become an active competitor in the commercial market.
Richard Galanti
United Way of King County
Katie Donnelly
Seattle Foundation
Scott Gode
Unify Square
See More People on the Move
The sale is of particular significance in the Puget Sound region because the Chinese designed the single-aisle C919 aircraft to directly compete with Boeing’s 737 series and
Airbus’ A320 series. Boeing makes the 737s exclusively in Renton.
While the repeatedly delayed C919 won’t be as advanced aerodynamically or electronically as Boeing's or Airbus' planes, it will be powered by similar engines. And City Airways probably got a killer discount because the government-supported Chinese manufacturer intensely wants to enter the global market, so short-term profit is not a concern.
In addition, with Boeing and Airbus both working on eight-year backlogs, City may get its C919s sooner from COMAC than it could have from the two larger companies.
COMAC is in the final stages of building its first C919, which is set to fly early next year.
“This order, outside of China, indicates that COMAC will be aggressive internationally, and will focus on Southeast Asian markets as the company moves internationally,” wrote Addison Schonland, partner at AirInsight
consultancy, this week. “While Boeing and Airbus have not considered COMAC a major threat in the short-term, they recognize the long-term potential for aircraft production in China.”
COMAC claims 507 orders for the 156-passenger C919, 96 percent them from Chinese airlines.
Boeing has 4,269 unfilled orders for 737s, and Boeing Vice President of Marketing Randy Tinseth said Tuesday,
during a speech before Seattle business leaders, that a third of those are going to China.