Thursday, 31 May 2018

24/7WallSt./Paul Ausick: Chinese Aircraft Maker Comac Gets Bids for Wide-Body Engines

24/7Wall St.   
    Special Report

Chinese Aircraft Maker Comac Gets Bids for Wide-Body Engines

By Paul Ausick    May 30, 2018 1:55 pm EDT

Commercial Aircraft Corporation of China (Comac) is a homegrown Chinese airplane builder that recently began test flights on its new C919 single-aisle passenger jet. The company has joined up with Russian firm United Aircraft Corporation to design and build another passenger jet, the CR929, a dual-aisle, wide-body plane that, unlike the C919, is intended to be a new design from the ground up.

According to a Wednesday report from Reuters, the China-Russia partnership has now received bids from seven aircraft engine makers to provide the engines for the CR929. That number seems to be a little high.

First, the usual suspects: General Electric Co. (NYSE: GE); the Pratt & Whitney division of United Technologies Corp. (NYSE: UTX); and Britain’s Rolls-Royce. Airline industry journalist Jon Ostrower adds Russia’s Aviadvigatel and China’s own ACAE. But that’s only five.

A couple of others that might be on the bidder list are Engine Alliance, a joint venture of General Electric and Pratt & Whitney, and French aircraft engine maker Snecma. One more outside possibility is CFM International, a joint venture between GE and Snecma’s parent company Safran.

According to Reuters, Comac and its Russian partner will create a team to analyze the proposals with a goal of completing an evaluation by the end of this year.

There are a few political hurdles here, as well as the usual assortment of technical ones. China will want the engines to be designed and built in the country and almost certainly will demand a transfer of the technology in exchange for the contract. This sort of arrangement has worked well with automakers and consumer electronic products, but giving away the design of a state-of-the-art aircraft engine that will take years and billions of dollars to build is likely to raise concerns with all but the Russian and Chinese governments.

At one time the CR929 was once expected to use engines from GE or Rolls-Royce, but China has since announced its intention to design and build its own engines and has consolidated several state-owned entities into a single company, Aero Engine Corp. of China (AECC), to do the work. The government announced last September that a domestically built engine is expected for the C919 but gave no estimated delivery date.

The larger CR929 remains a long way from entry into service. Preliminary design work is expected to be approved next year and design documentation is due in 2021, with the first test flight coming in 2023 and entry into service in 2026.
24/7 Wall St.
How Much Does a Boeing 777X Cost?
I'm interested in the Newsletter

terms and conditions

By Paul Ausick
« Over $600 Billion in Cryptocurrencies Traded in May
Exxon, Chevron Lift the Dow Wednesday »
Read more: Aerospace & Defense, China, featured, General Electric Company (NYSE:GE), United Technologies Corp (NYSE:UTX)

    Free Daily Newsletter

    Google+ Terms & Conditions
    Get Quote for:
    Symbol Lookup

        Is Enbridge Inc. a Buy?
        George Soros Bought This Clinical-Stage Biotech Stock. Should You?
        What Lowe's Wants You to Know About Its Latest Results
        Dow futures down 85 points, or 0.3%
        S&P 500 futures down 0.2%
        Stock index futures drift lower ahead of opening bell
        Small Caps Lead Rebound from Italian Selloff
        Transdigm (TDG) Up 6% Since Earnings Report: Can It Continue?
        Time to Focus on Intuit (INTU) for Strong Earnings Growth Potential
        AP source: Ex-FBI No. 2 official wrote memo on Comey firing
        The Latest: Barr unleashes new tweetstorm hours after firing
        Messages on iCloud has landed! How to turn it on
        British pro-Brexit campaigner applies for French residency
        3 Stocks That Pay You Each Month
        Trump plans to go ahead with steel, aluminum tariffs on EU

    Home About Us Disclaimer and Terms of Use Privacy Policy Contact Us Advertise AOL-HuffPost Money & Finance

©2018 24/7 Wall St. | Powered by VIP

No comments: