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College of Business

Dr. Bijan Vasigh Interviews with China Economic Review

Daytona Beach, February 3, 2012

Airbus and Boeing are hoping to boost China sales by garnering favor with the government. But their plans could be undercut by homegrown Comac

Chinese champion

Yet no one can play China’s political system quite as well as the Chinese. Airbus and Boeing are both likely to see their market share shrink as Beijing pushes for Comac to become a domestic and eventually an international contender. Comac is betting that its C919, scheduled to enter service in 2016, will be able to compete directly with the A320 and 737. The Chinese company has pledged to undercut Airbus and Boeing on price, though it has not said by how much. But government influence will likely make the largest difference in orders. State support has already helped Chinese airlines to expand faster, serve more destinations and retire aircraft earlier than most purely private carriers, said Dr. Bijan Vasigh, a professor at Embry-Riddle Aeronautical University in the US.

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