Hong-Kong based CALC (China Aircraft Leasing Group) offered the largest contract that Comac has ever received. It ordered for 30 planes of the model ARJ21 with another 30 as an option. These planes would be leased to an unnamed company of Indonesian Airline Service in which Friedmann Pacific Asset Management invests. All three parties were available during the ordering.
Aviation Industry Corporation of China was another client for Comac when it ordered 30 jets to be manufactured by Comac. The price of the deal was, however, not revealed in the briefing.
Comac is the national aerospace company of China which was started with an aim to replace the international giants by manufacturing aircraft indigenously. This bold step of China was seen as a move to become self-sufficient in providing aircraft to its home-grown airline services and gradually increase its business throughout the world. Like other Chinese products, the ARJ21 aircraft is also relatively less in cost which would bring it more contracts in future.
The domestically manufactured ARJ21 series is the first passenger aircraft manufactured in China. The model can be modified to seat 90 for a single class whereas it offers 78 seats for the mixed class and 68 seats in the premium economy class. It, however, gets its engines manufactured by GE Aviation from the United States. It took around 15 years for the company to develop its model and its first flight test was conducted in 2008.
Its variants include ARJ21-700 which is their basic model that seats up to 70 to 95 passengers. Its ARJ21-900 has the capacity of lifting around 105 passengers. The ARJ21F model is a cargo flight that can transport a load of 10,150 kg. The ARJ21B is the business jet version which would have a seating capacity for 20 passengers.
The news of the ordering of contract to Comac has had a huge impact on the sentiments of the Chinese investors. It also showed LED stock tickers showing positive results in the stock markets. They are looking forward to making transactions with the company. They, however, may want to wait and watch to see whether the company can deliver the products on time. This indeed is a good signal for the company as many regional East Asian aviation companies are also looking out to do business with the upcoming aircraft maker.
The prospects for the company are fairly good as there is no such threat to the company if competition is concerned as there is no aircraft manufacturing company based in Asia. Even though India is catching up in the South Asia but it will take a lot of time to become a potential competitor to Chinese Aerospace Company. The Airshow itself had brought good fortunes to the investors as was evident from the results shown on the LED finance tickers in the share market.
Comac is still in the growing phase and it has to go way ahead. It still uses the engine imported from the United States. Its engineers are trying to develop an indigenous engine that would replace the GE twin engine in future. But overall, it is a day of celebration for the Chinese Aircraft Company. There are more contracts to come and the company has to try to deliver its orders on time.