Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 17 pages
Data source: Published sources
Topics:
China; Boeing; Airbus; Strategy; Aircraft manufacturing; AVIC; AJR21; Russia; Japan; Single-aisle; Twin-aisle; Wide-bodied; LCA; Regional jets
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Abstract
The global aircraft manufacture marketplace witnessed entry of new players from China, Russia, and Japan. For long, the industry had been virtually dominated by Boeing and Airbus. Even aircraft manufacturers from Canada and Brazil made their way into the smaller aircraft segment particularly regional jets capable of flying for short and medium hauls. China, in May 2008, successfully completed a test flight of its regional jet ARJ21, fuelling its long time ambition to commercially launch its own aircraft. It also announced to design and build a single-aisle jumbo aircraft C919 by 2014 and started to book orders in 2010. China for the past 40-50 years had been trying to develop its own commercial aircraft, aided by the Russian technology that failed to impress the buyers. The government''s successive Five Year Plans incorporated revitalisation of its aircraft manufacturing facilities to cater to the growing domestic aviation needs for short to medium haul aircraft. There has been apprehension about products from China with regards to safety and standards, especially toys and clothing. Experts believed that hi-tech products were reverse-engineered and could create a two-tier market structure. It remained to be seen how the established players embrace the new competition and the Chinese resolve to make their presence felt in the marketplace.
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Abstract
The global aircraft manufacture marketplace witnessed entry of new players from China, Russia, and Japan. For long, the industry had been virtually dominated by Boeing and Airbus. Even aircraft manufacturers from Canada and Brazil made their way into the smaller aircraft segment particularly regional jets capable of flying for short and medium hauls. China, in May 2008, successfully completed a test flight of its regional jet ARJ21, fuelling its long time ambition to commercially launch its own aircraft. It also announced to design and build a single-aisle jumbo aircraft C919 by 2014 and started to book orders in 2010. China for the past 40-50 years had been trying to develop its own commercial aircraft, aided by the Russian technology that failed to impress the buyers. The government''s successive Five Year Plans incorporated revitalisation of its aircraft manufacturing facilities to cater to the growing domestic aviation needs for short to medium haul aircraft. There has been apprehension about products from China with regards to safety and standards, especially toys and clothing. Experts believed that hi-tech products were reverse-engineered and could create a two-tier market structure. It remained to be seen how the established players embrace the new competition and the Chinese resolve to make their presence felt in the marketplace.