Chinese Aviation Industry
- Thread starter FriedRiceNSpice
- Start date
Pointblank
Senior Member
Even the firm orders aren't truly firm; while they are 'orders' in a sense, the buyers apparently have the right to walk away from the contract without paying a penny in cancellation penalties. If you tried that with a more established manufacturer, they would be levying heavy fines for walking away from the contract.
Nobody buys aircraft because they are cheap. They buy the best they can get their hands on, even if it is second hand from a reputable manufacturer.
The Chinese airlines had to be heavily arm twisted to order the C-919, and they only did in small quantities. The Russian airlines did so at their own accord, and are starting to win export orders as well (50 MS-21's were sold to Crecom Burj Resources in Malaysia).
A few mistakes? You call severe issues with certifiably that can affect safety (wing failure before ultimate load requiring redesign, flight control software that needs to be totally re-written, etc) a few minor mistakes?
The MRJ is actually doing very well in terms of development, as everything is right now set for delivery in 2014. Mitsubishi has the industrial capability and a solid history building airplanes or large sub-components of airplanes, backed up by Boeing's partnership.
There is a lot of pressure on these companies. Even if they are a lot more commercially driven than in the past, they will have to put in orders once C-919 comes out. You are seeing that with all of the orders out right now.
Please take a lot at the export reach of MA-60 just purely due to the political influence of Chinese government and generous loans. Let's just say I would never fly on it, but somehow they are selling it. There are a lot of countries that can't purchase Boeing and Airbus, this is well known. They will have to pick between China and Russia.
The Russians are not facing any political pressures? lol. If anything, the Russians are far less commercially driven and forced to buy their indigenous products. Have you ever listened to what Putin has been telling the domestic airlines? Just look at Tu-204 and Tu-154 serving in Russia. If it was just based on quality of the plane, who would be buying those aircraft unless they want to kill customers.
AVIC-1 has been doing a lot of sub-components for airliners too. Have you looked at how much of the Bombardier planes are been produced in China recently? And wasn't MRJ originally supposed to come out in 2012? Let's see when it actually comes out.
Chinese Planes Good for Industry: Ryanair CEO
The CEO of Irish low cost carrier Ryanair believes the emergence of new aircraft manufacturers is good news for the airline industry and passengers.
“The Boeing and Airbus duopoly is ending,” said Michael O’Leary in a CNBC interview following the release of second quarter earnings.
O’Leary believes Comac, a Chinese manufacturer, will emerge as a major rival to the traditional players from Europe and the US over the next five years, in large part because of problems at Airbus and Boeing.
Citing major delays and uncertainty surrounding the delivery of Boeing planes as a key reason for Ryanair looking further afield for its new planes O’Leary indicated the US manufacturer could not rely on his business for ever.
“The major problem is delivery delays from Boeing and Airbus due to the delays they are experiencing with new, bigger planes” said O’Leary.
The comments came as Ryanair posted forecast-beating profits for the group's second quarter despite high oil prices and shares in the airline opened higher by 5 percent on Monday.
Second quarter profits before tax came in at 404 million euros versus a Reuters expectation of 393 million euros, leading O’Leary to raise profit guidance for the full year by 10 percent.
O’Leary said he is grounding 80 planes over the winter to protect yields and expects to benefit as more and more passengers fly low cost at the expense of the major flag carriers.
Ryanair traffic in November fell by 15 percent.
He also expects to pick up business from the takeover of BMI by the owner of British Airways IAG.
Virgin Airlines are attempting to scupper that deal with a rival bid but O’Leary expects BMI’s low costs routes to be taken out of the market allowing Ryanair to “mop up” that traffic.
The CEO of Irish low cost carrier Ryanair believes the emergence of new aircraft manufacturers is good news for the airline industry and passengers.
“The Boeing and Airbus duopoly is ending,” said Michael O’Leary in a CNBC interview following the release of second quarter earnings.
O’Leary believes Comac, a Chinese manufacturer, will emerge as a major rival to the traditional players from Europe and the US over the next five years, in large part because of problems at Airbus and Boeing.
Citing major delays and uncertainty surrounding the delivery of Boeing planes as a key reason for Ryanair looking further afield for its new planes O’Leary indicated the US manufacturer could not rely on his business for ever.
“The major problem is delivery delays from Boeing and Airbus due to the delays they are experiencing with new, bigger planes” said O’Leary.
The comments came as Ryanair posted forecast-beating profits for the group's second quarter despite high oil prices and shares in the airline opened higher by 5 percent on Monday.
Second quarter profits before tax came in at 404 million euros versus a Reuters expectation of 393 million euros, leading O’Leary to raise profit guidance for the full year by 10 percent.
O’Leary said he is grounding 80 planes over the winter to protect yields and expects to benefit as more and more passengers fly low cost at the expense of the major flag carriers.
Ryanair traffic in November fell by 15 percent.
He also expects to pick up business from the takeover of BMI by the owner of British Airways IAG.
Virgin Airlines are attempting to scupper that deal with a rival bid but O’Leary expects BMI’s low costs routes to be taken out of the market allowing Ryanair to “mop up” that traffic.
