READY FOR ACTION: The J-10 fighter, a domestically manufactured jet used by China's Air Force, is on display at the Seventh ChinaInternational Aviation and Aerospace Exhibition
In 2005, China's former Minister of Commerce Bo Xilai estimated that the country needed to sell 800 million shirts to import an Airbus 380 passenger jet. But now, Chinese aircraft makers are selling passenger jets to Western countries, including the United States, for the first time.
On November 4, the first day of the Seventh China International Aviation and Aerospace Exhibition, the Commercial Aircraft Corp. of China Ltd. (COMAC) signed a 5-billion-yuan contract to sell 25 ARJ21-700 feeder jets with a value of $732.4 million to GE Commercial Aviation Services (GECAS).
"This is the biggest foreign order China has ever got, and it marks the first time that the country's domestically developed and produced commercial jet enters the U.S. market," said Zhang Qingwei, Chairman of the Board at COMAC.
The expo, also known as Airshow China, was held on November 4-9 in Zhuhai, Guangdong Province. Companies signed deals involving 102 aircraft, according to a news release. Some 600 aviation businesses from 35 countries and regions attended China's largest air show, where 58 aircraft were on display.
According to a Zhuhai Daily report, COMAC will start delivering the ARJ21-700s to GECAS in 2013. The feeder jet, which can accommodate 70-90 passengers, is scheduled for a maiden flight in mid-November, Zhang said. The jet is expected to receive certification from the U.S. Federal Aviation Administration in 2010. The company will use four planes for test flights before commercial services begin.
GECAS, a leading global player in commercial aircraft leasing and finance, will lease the 25 jets to a global client or a Chinese or European customer, said Roger Seager, Vice President of GECAS. Until now, COMAC has received 181 orders for the ARJ21 from domestic carriers. Kunpeng Airlines signed the largest single deal for 100 jets last year.
Prime opportunity
Embraer of Brazil, the world's third largest commercial aircraft manufacturer, estimated that by the end of 2007, China had only 81 feeder jets, accounting for just 8 percent of its total aircraft, while in Europe and North America, the percentages had reached 36 percent and 43 percent, respectively. A report issued by the Aviation Industry Corp. of China said that the country would need 993 feeder airplanes in the next 20 years. Despite the duopoly of Boeing Co. and Airbus SA in the trunk-line aircraft market, huge opportunities abound in the feeder aircraft market, prompting more countries to conduct research on and develop feeder jets. China started the ARJ21 project six years ago, grasping an important opportunity in the global competition, Zhang said.
During the six-day air show, Chinese companies also ordered nearly 100 airplanes, including 60 from Boeing. According to a China Central Television report, Boeing China officials said domestic demand was slowing because of the global economic downturn. Nevertheless, Chinese airlines are still expected to purchase about 4,000 planes over the next two decades.
China plans to develop a 130-to-200-seat commercial aircraft, the world's most popular type of jet, to break the market duopoly of Boeing and Airbus, said Wu Guanghui, chief designer of the program and Vice General Manager of COMAC. He said the plane would be designed and assembled in Shanghai, but would source parts and components globally-a model used by Boeing and Airbus.
"We will choose international suppliers through bidding, but priority will go to foreign suppliers that design and manufacture products with companies in China," Wu said.
China Aerospace Science and Technology Corp., the developer of the manned spacecraft Shenzhou 7 and its carrier rocket Long March II-F, displayed about 100 advanced technologies and products at the air show, including Shenzhou 7's orbital model and a model of the spacecraft's re-entry module.
The Chinese Air Force participated in the air show for the first time, displaying its new J-10 fighter jet. A China News Service report said a total of 16 Air Force planes had been selected to make their debut at the expo, including a military helicopter, an aerial refueling plane and a J-10 fighter aircraft.
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