New Competition for Boeing and Airbus
by Matthew Pellicer on September 25, 2013 - 11:39am
Comac, a state-owned company in China, has a goal of creating a plane to compete with the Boeing 737 and the Airbus 320. They are designing a 174 seat plane called the C919. China is putting in a lot of money to finalize this plane and another smaller aircraft, the ARJ21, which has 90 seats.
As these two planes aren’t finished their production, they already have many orders that are waiting. The goal of creating these two planes is as much to create competitive planes as they are for China to learn the ropes of making them. They are currently selling them to mostly local carriers as the ARJ21 is done the design process and are currently in production. This means that if Comac is able to sell these planes for cheaper than Boeing or Airbus would, more airline companies might start up. This can only be good for a consumer because they would eventually lower prices to be more competitive. Competition always benefits the consumer because the companies each want to hold a larger market share than the others. The example of Comac starts at the source of the costs of an airline company and if these can be reduced we will probably all be able to go on vacations for less.
The only downside with the Comac planes right now is that they are missing U.S. certification on the ARJ21 and because of this won’t be able to get it on the larger plane which is meant to compete with the other companies. Without this certification, the planes wouldn’t be able to operate for flights involving the U.S. and probably many other countries that base themselves on this certification.
All in all, I think this is good news for anyone who likes to travel as prices will drop in the future which means that going around the world will become less expensive.