Chinese plane maker finds opportunity in huge Boeing 737 backlog

The 90-seat Chinese ARJ21 is six years late, but successor C919 poses a threat to Boeing.

China?s budding commercial aircraft industry is having as many problems as Boeing and Airbus have suffered in recent years, but delays in China don?t mean it isn't a threat.

In a post today, analyst Ernest Arvai said the current 380 order total for the Commercial Aircraft Corporation of China?s C919 jetliner suggests that the Chinese planemaker is capitalizing on the very full narrow-body order books at Boeing and Airbus, to build market share.

Boeing and Airbus have roughly seven-year backlogs for the 737 and A320 series, respectively.

?Constraints on growth for Airbus and Boeing may leave COMAC with the only available delivery slots for new aircraft above 150 seats 5-6 years from now,? Arvai writes in the blog AirInsight. ?Could Airbus and Boeing being too successful create a strategic opportunity for China??

Whether or not the C919 orders are the type of ?firm orders? that are reported by Boeing and Airbus and that include a deposit is another matter. Boeing has 3,020 firm unfilled orders for the 737, with 969 of those for the high-efficiency 737 Max.

Developing a commercial aircraft industry is a national priority for China, and the boundaries between airlines buying aircraft and the companies making them are blurry.

One thing that?s clear is that China?s first commercial aircraft, the 90-seat ARJ21, is now at least six years behind schedule, because it was originally to go into service in 2006.

The 737-size C919 is doing better, but it?s also delayed by several years, partly from design issues.

STEVE WILHELM covers manufacturing, aerospace and trade for the Puget Sound Business Journal. Phone: 206-876-5427 | Email: swilhelm@bizjournals.com | Twitter: stevewilhelm108 Click here to sign up for the PSBJ Daily Update.

Steve Wilhelm covers manufacturing, aerospace and trade for the Puget Sound Business Journal.

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