The Massachusetts Port Authority reports that the currently named Hainan Airline Aviation Group has formally applied to the Civil Aviation Administration of China for permission to fly daily nonstops from Beijing to Boston using Boeing 787 aircraft.

The airline will, according to the Boston Business Journal be rebranded as Grand China Air which is a better name than Hainan Air given that most Americans do not have the foggiest notion where Hainan is geographically. The service will be non-stop 13-hour, 20-minute flights.

According to a a release from the local government, creating a nonstop service from Boston to China was a key goal of Governor Deval Patrick’s trade mission to China in December.

The CAAC said it would receive public comments on the application until April 10.

Massport CEO Thomas J. Kinton Jr., in a statement said, ‘We have been talking with the Chinese for three years to develop this route.

‘Every major US airport wants a China service, but we have the market to support it. Logan had 38,000 passengers travel from Boston on tickets purchased with a final destination of Beijing, and another 30,000 headed to Shanghai.’

With production delays in the long-range, fuel-efficient Boeing 787 Dreamliner pushing back aircraft delivery, it is unlikely the service on Hainan’s Grand China Airlines will begin before 2010.

Source: Boston Business Journal

The Chinese government has officially approved the launch of China Commercial Aircrafts, which will manufacture large passenger planes. The plan is to have jets designed and built in China rolling off an assembly line by 2020.

Asian airlines are expected to buy nearly 10,000 new planes by 2025, with more than 2,200 of those going to Chinese airlines.

China has acquired the needed technical expertise by cooperating with Boeing and Airbus. China Aviation Industries Corporation (AVIC-I) produces components for Boeing’s 747 and 787 wide-bodies and operates a final assembly line for the Airbus A320.

China has already received more than 100 0rders for the 70-passenger regional jet ARJ21 and will set up a sales subsidiary for the ARJ21 in the United States.

True, Chinese aircraft must meet the Department of Transportation’s stringent safety criteria before they’ll be allowed to fly in the United States, and there is some question as to how long it will take China to meet these standards although every manufacturer in the world has had to go through this process and, although lengthy, it can be done.

The biggest problem remaining is the issue of consumer perception.

Chinese airlines are still well below world standard in running their airlines, mo matter who the manufacturer. Worldwide there would be resistance, initially at least, from passengers who simply would not wish to fly on an aircraft built in China in exactly the same way such resistance exists against aircraft built in Russia.
Source: Wired

There is a clear understanding in Beijing that the best way for China to achieve its ambition in civil aviation — namely to build its own fleet of commercial craft — is to work in partnership with Airbus and Boeing, rather than flying solo or partnering with Russian companies.

Beijing has employed this strategy over the last 20 years or so, working with both Airbus and Boeing to produce components and sub-assemblies as a first step on the long road to manufacturing its own indigenous aircraft.

According to Boeing’s forecast, China will demand many more aircraft over the coming 20 years than Boeing had initially expected in 2006. Boeing predicts that between 2007 and 2026, China will purchase 3,400 new aircraft worth US$340 billion, while Rolls-Royce foresees a demand for 3,100 aircraft over the same period.

As a result, domestic demand on the Chinese aviation industry to excel and deliver domestically built aircraft will only increase. In conjunction with the development of commercial carriers and civil helicopters, skills in the Chinese aircraft maintenance, repair and overhaul (MRO) sector are rising rapidly.

AVIC I’s Shanghai Aircraft Manufacturing Factory operation, which is responsible for the final assembly of the ARJ21 civil craft, will become part of a listed company, AVIC I Commercial Aircraft Corporation (ACAC), whose shares will be sold in China and on foreign stock exchanges.

The operation of Xian Aircraft Industry Corporation will be reorganized as a listed business that will later become the core of a civil manufacturing group encompassing the civil facilities at the Chengdu Aircraft Industry Corporation and Shenyang Aircraft Industry Corporation.

The author of this long and detailed article is Dr Eugene Kogan who is a guest researcher at the Research Institute of the German Council on Foreign Relations in Berlin. He is a defense industry analyst with expertise on Russia, Eastern Europe, Israel and China.

The full article first appeared in The Jamestown Foundation and is used by Asia Times with permission. To read the quite extensive and very clearly written piece click on Source. It forecasts a seriously important growth period for the China aviation construction industry.
Source: Asia Times

Boeing and Airbus need to seriously look at their planning systems. Compared to those of China they are very definitely third world.

Both are suffering the sort of delays which will make their major customers — think China — that it is quicker and better and cheaper to build the damn thing themselves.

Boeing has said the inaugural flight of its much-anticipated B787 would be delayed by up to three months to the end of the second quarter due to supply chain problems and slow progress on the assembly line.

The delay means Boeing will not be able to start delivering the plane until early 2009, rather than late 2008.

This is the third time Boeing has announced delays for the hot-selling airplane. Which makes is look like a very silly billy.

Scott Carson, president and CEO of Boeing Commercial Airplanes, said in a statement, ‘The fundamental design and technologies of the 787 remain sound. However, we continue to be challenged by start-up issues in our factory and in our extended global supply chain.’

In other words we cannot make it on time. Perhaps a new approach is needed?

The B787, also called the Dreamliner, has been the most successful new jet launch in history with 817 orders, including 60 from five Chinese airlines — Air China, China Eastern Airlines, China Southern Airlines, Hainan Airlines and Shanghai Airlines.

Boeing China yesterday declined to say when China would receive its first B787 after the latest delay. Certainly this century. Almost without a doubt.

Air China was originally scheduled to receive two B787s in 2008, with one delivered in June. The aircraft will be used on its European or US routes. The Chinese flag carrier has ordered 15 B787s.

An unnamed official from the Beijing-based carrier yesterday said the airline was capable of adjusting its fleet to the delay.

Wu Yucun, an aviation analyst with Shenzhen-based Lianhe Securities said, ‘The B787 delay is unlikely to have a big impact on Chinese airlines ‘expansion given the relatively small number. ‘ He was just being kind.

Boeing builds its commercial airplanes in Seattle and has outsourced an unprecedented amount of the B787 program — including design and production — to manufacturers around the world. It wrestles with complex product development in terms of technology and program management.

Airbus’ flagship A380 superjumbo was delayed by nearly two years.

In other industries if these delays occured there would be tears before tea time. ‘We’re sorry your daily paper will not be available until next week but we are having trouble with ink.’
Source: China Daily

Shanghai Airlines is considering an order for Airbus A330 medium-range aircraft as it speeds up the expansion of its international network.

Zhou Chi, chairman of Shanghai Airlines said the company is looking to buy 10 single-aisle A320 aircraft. He said the company is also considering buying A330 aircraft, but has yet to decide the size of the order, adding that the wide-body planes could be used to reinforce its flights to neighbouring markets.

Shanghai Airlines, which had earlier placed an order for nine of Boeing’s 787 or Dreamliner, is also scheduled to launch daily flights to the United States and the German city of Hamburg next year.

But the plan may be postponed because of the delayed delivery of the Boeing aircraft.

President Fan Hongxi said Shanghai Airlines has now joined Star Alliance, the world’s largest airline grouping. It plans to expand its international network on its own or via code-sharing with other members of the alliance.

He said international flights now make up less than 10% of the airline’s sales and the airline hopes to raise that ratio to roughly 30% in five years, adding that Star Alliance membership would be a big help.

Sales of the Shanghai-based carrier, which operates a fleet of 59 aircraft, rose 23% to US$1.2 billion from January to September.
Source: China Daily and Cargo News Asia