China aims for aerospace domination
Updated
They're already putting together aircraft parts for the big names in aviation, and now the Chinese, have set a date for putting themselves alongside the likes of Airbus and Boeing, Rolls Royce and G-E.
A four and a half billion US dollar cash injection, into China's aerospace engineering and manufacturing industry earlier this year, will help create a Chinese-made jumbo jet by the year 2014, and a jet engine two years later.
Presenter: Bo Hill
Speakers: Derek Sadubin from the Centre for Asia Pacific Aviation, He Ren from Melbourne's RMIT University
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HILL: It's been part of the plan for years, a Chinese aircraft engineering industry capable of designing and building its own jets and their engines. So will the announcement that the Commercial Aircraft Corporation of China will be making aircraft and jet engines within a few years have the big names shaking in their boots? Derek Sadubin from the Centre for Asia Pacific Aviation says he doubts it.
SADUBIN: It's a very large market and the Chinese government will probably be looking to involve them in some way through investment and technology transfer, so it is actually a net benefit for the industry in general to have the Chinese looking to get into this side of the industry.
HILL: Designing and building jet engines is a lucrative business, though much of the profits are made in the service and maintenance after installation. Aerospace engineering lecturer, He Ren (hay rin) from Melbourne's RMIT University, says it makes sense for the fastest-growing air transport region in the world to have its own manufacturers.
HE: Of course they can purchase from Rolls Royce or other company but they're thinking, you know, for the market prediction in the next 15 years they would like to purchase 2,400 aircraft - that's a big market, a lot of money. If we can build up themselves the capability, that can save a lot of money for them as well.
HILL: For the domestic airlines, buying Chinese is not a choice, but an obligation.
HE: The airlines are under the market controlled by the government, or government-owned companies. The government will have a big influence to the cooperation.
HILL: Asia Pacific aviation specialist, Derek Sadubin agrees.
SADUBIN: We suspect the airlines will be directed to buy these engines and aircraft in the future.
HILL: But there will definitely be opportunities for foreign-owned manufacturers and technology firms, and lucrative ones at that.
SADUBIN: I think the Chinese market will require that many aircraft and engines over the next 20 years that there's more than enough pie for everyone. The Chinese market potential is such that solid growth should be there over the long term.
HILL: Aerospace engineering lecturer Dr He Ren (hay rin) says even his students are excited about the potential in China.
HE: All the RMIT students who would like to find a job in China in future they do believe the Chinese aviation industry will become very strong. I do believe the Chinese aviation industry will be the third largest and strongest in the world in the next 10 years.
HILL: A miniature version of the Chinese-made passenger jet the C919 will be on display at the Asian Aerospace Expo in Hong Kong on Setpember the 8th.
