China Southern has agreed to purchase 100 locally built C919 planes from Commercial Aircraft Corporation of China (COMAC), marking a significant step in Chinese efforts to break the duopoly of Airbus and Boeing in the commercial aircraft market. The C919 is considered an emerging competitor to Airbus’ A320 and Boeing 737, with hopes for higher deliveries in the future. This order comes after Air China also signed an agreement with COMAC for 100 C919 jets, meaning all three of China’s largest airlines now have major orders pending for the aircraft.
The delivery advantage of the C919 lies in the short lag time between an order and first delivery, which gives COMAC a commercial advantage over its Western rivals, Airbus and Boeing, who have long waiting lists and booked delivery slots until the end of the decade. However, the C919 still relies on foreign suppliers for engines and many of its systems, which could cause supply chain issues as production ramps up. China Southern was able to negotiate a discount for the C919, similar to the discount received by China Eastern in a previous deal for the same aircraft.
The potential broader shift in the commercial aircraft market will come if international carriers are tempted by the C919’s short delivery times, aggressive pricing, and competitive product. While COMAC has around 1,100 orders for the C919, mainly from Chinese companies and airlines, international operators seem less interested at the moment. Air Lease executive chairman Steven Udvar-Hazy expressed disinterest in Chinese planes, casting doubt on the appeal of the C919 among Western carriers. The first flight of the C919 occurred in 2017, with only the Civil Aviation Administration of China certifying the jet for passenger service.
While Airbus’ CEO has downplayed the impact of the C919, Boeing’s Asia-Pacific commercial marketing managing director acknowledged competition from the Chinese aircraft in the company’s long-term forecasts. The future success of the C919 in disrupting the commercial aircraft market remains uncertain, especially with concerns about approval from regulatory agencies outside of China. Chinese airlines’ purchases of locally built aircraft have been common, but the potential for international carriers to follow suit may depend on factors such as performance, pricing, and market demand. The commercial success of the C919 will ultimately determine whether it can challenge the dominance of Airbus and Boeing in the global market.
