00:00Anita Mandriata is an aviation advisor and it's a delight to have you back on Global Business Europe. Welcome.
00:05Anita, how big a moment is this first international flight for China's aviation ambitions?
00:13Juliet, thank you very much for having me back. And if I think of you and I speaking last when
00:17I was at the IATA AGM,
00:19it's incredibly exciting and incredibly exciting for China, but also for global aviation.
00:24The importance of this isn't just reaching out internationally. It's the fact that COMAC,
00:30which has been part of the conversation for several years, is now part of the supply chain when it comes
00:36to aircraft.
00:37So this is a statement not only about Chinese aviation, but Chinese identity when it comes to aviation technology
00:43and putting an opportunity now for global airlines to actually start purchasing,
00:48knowing they've had huge pressure on their deliveries from both Boeing and Airbus.
00:53So it's a significant moment for the entire aviation community and a proud one for China.
00:58Well, we talked to China Airbus not long ago. They talked about how they're going to be building more A320s
01:03in China.
01:05You know, to capture the same market that COMAC is chasing, is COMAC actually competing with Airbus or with itself?
01:16It's competing in a way, but importantly, the aviation market and supply has been very, very limited.
01:21So this is very good because it actually complements what Boeing and Airbus are already providing.
01:26Still, it's not at scale. It's just in its early points, and it's only with Chinese regulatory approval.
01:33But what's critical about your question, Juliette, is that when we look at Airbus and Boeing and COMAC,
01:38they all rely on the same supply chains, which are outside of China, the most critical being engines and avionics.
01:45And we know that Boeing and Airbus have been held back significantly on their production rates
01:50because of issues with the engines and avionics, as is the case with COMAC.
01:56There's about 20 to 30 percent of COMAC's parts are actually beyond Chinese borders.
02:01So it's not all produced in-house and all the materials in-house.
02:05So it's a good thing for the duopoly, and it's a good thing for global aviation
02:09because they're simply in undersupply at a time when global trade and travel are surging.
02:15But you touched on supply chains there. I want to know a little bit more.
02:19I mean, what is COMAC's delivery status?
02:22Because we've seen some of those supply chain squeezes, haven't we, over tariffs?
02:27We have indeed. And it's been, quite honestly, the supply chain for COMAC is tiny.
02:32They've only just started.
02:34Importantly as well, when we look at the actual aircraft, the C919,
02:38this competes with Boeing 737 MAX and the NEOs on the Airbus side.
02:43So it's very much future technology of aviation.
02:46It's lower emissions, much lighter, and that's where it's a good thing when it comes to sustainable aviation.
02:52But as you're saying, there have been constraints and issues around supply chains.
02:57But again, COMAC is only at the starting point of deliveries.
03:00They've only had three to five aircraft actually delivered to their Chinese customers.
03:06So it's really creeping up because from a regulatory perspective, quality and safety will not be compromised.
03:13Everything must be absolutely certain in terms of the quality of production
03:17and by implication, the people who are actually flying as well.
03:20So this is a slow process, and this is only within Chinese regulatory environments as well.
03:27There's no indication as to when European and American regulatory approval will even start as a process.
03:34And until that happens, the order simply won't come through, especially beyond China.
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