Wednesday, April 17, 2019

An Interesting Coincidence?

It is a very peculiar coincidence. First, Yahoo publishes this:
That the U.S. and EU bolster their respective aerospace giants is a basic fact of the industry at this point. Yet the firms’ fierce rivalry and the enormous market share at stake means the U.S. and EU have challenged the other’s state-sponsored support—It’s fundamentally unfair! It’s market-distorting!—for well over a decade. Both sides’ claims have been at least partially upheld by the World Trade Organization, and those victories mean that each has the opportunity to hammer the other with tariffs. In other words: it’s payback time. But as the U.S. and EU trade threats on behalf of their industrial champions, an upstart aerospace firm could pose a threat to Boeing and Airbus’s long-term lock on the market. And it’s not wasting time worrying about subsidies; in fact, it’s welcoming state aid from an enthusiastic booster: China.
Of course down the article Yahoo makes a distinction: 
In fact, France has warned against any escalation of the trans-Atlantic subsidies argument, with Finance Minister Bruno Le Maire saying last week that it could “play into the hands” of a potentially significant competitor to both companies: the Commercial Aircraft Corp of China, or Comac. Comac, in partnership with Russia’s United Aircraft Corp, recently unveiled proposals for a long-haul widebody jet. It is already selling smaller models to Chinese carriers such as Chengdu Airlines, and trying to target some emerging markets such as Ghana with those regional planes. And all with the Chinese government’s support.

I have news for France's Finance Minister, who, obviously, having degree in literature from Sorbonne, before enrolling into Government Administration program, may not know it, but there are few very, how to put it politely, noticeable issues with this statement. Good that at least UAC and Russia were mentioned there. COMAC-919 is being created as primarily internal Chinese commercial aviation market filler for the nearest (10-30 years) future. COMAC-919 which still continues to have issues, is an outdated design and, apart from being a thoroughly "Western" aircraft it doesn't have...drum roll... indigenous competitive engine. It is simply not there, apart from few demonstrators which are not in the production and God knows when will be. 

And here is a Russian "coincidence: in Vzglyad with a telling title:

Китай ждет помощи от России в области авиации (China expects help from Russia in aviation field). 

Here is in English. 

Enter life-giving US sanctions on Russia. Only totally delusional people will continue to believe BS of sanctions in military and aerospace field against Russia as having something to do with politics--BS. It is all about Boeing and American Military-Industrial Complex. After all, none other than Russia's PM Dmitry Medvedev (whose role I am in the process of reassessing in a very positive direction now, after some new facts) today already reported Russia's military contracts portfolio worth $54.5 billion. Thankfully, by imposing sanction, such as those on composites by Hexcell, US, thinking that they damage MC-21 program, merely accelerated and to a breakneck speed localization of this aircraft, which will be a direct, unlike is the case of COMAC-919, competitor to both A-320neo and whatever the ill-fated B-737Max 8 will become.   

But that is the whole point, for the first time in history China was invited to become a co-organizer of the famed MAKS air exhibition, MAKS-2019. It will be at this massive salon that China will feature own progress but also the mock-up of  CR-929, Russian-Chinese wide-body airliner--the actual article, which together with MC-21 is honed to break up Boeing-Airbus duopoly. Behind all that one can see the shadow of not only majority of Russian home-made systems ranging from APU to avionics, and composites, which are already part of the newly constructed MC-21s, but of PD-14 engine which already received the certificate of type, while Russian-made APU received certificate from EASA. Russia ALREADY has certified PD-14 and the logical next step of PD-35 for wide-bodied intercontinental CR-929 and, wait a minute, IL-96, is being taken as I type this.

In the end, it is about more than just Boeing-Airbus saga, it is about those shady Russkies, hiding behind the tree in the ambush and waiting for their chance. So, let me reiterate--no own engine, no great aviation power. COMAC-919 will be powered undeniably by P&W or CFM. PD-14 is competitive and it already flies and is being produced, actually. Chinese AJ-1000A, will see. But in any case, Russia's return to commercial aircraft market will be noticed. Hell, it is already noticed, hence US sanctions--sanctity of Boeing, especially after this gigantic FUBAR with B-737 Max 8, must be well-guarded. Make no mistake, I am not sarcastic here, when I type this. The duopoly will be broken one way or another and behind it, apart from obvious advanced avionics, materials and design, all of which Russia has, is a massive Soviet/Russian school of engine manufacturing which was and is behind some of the most outstanding military aircraft in history. This experience is a key--that is why China paid billions to get her hands on Russian version of SU-35, that is why Egypt wants it, Indonesia signed the contract for 11 of them and that is why United States slaps economic sanctions on anything Russian--because it is too damn good and competitive. So simple, really.  

As per MAKS-2019. That is going to be a treat for aerospace obsessed and an eye candy. It always is.       

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