Airbus is tracking China's Comac as the C919 challenges its dominance, while the aviation industry forecasts massive growth in both aircraft and services.
Airbus watches Comac's rise
Airbus is closely watching the progress of China's Comac, a company developing the C919, a commercial aircraft designed to compete with Airbus's A320 and Boeing's 737 Max. Lars Wagner, director of commercial aircraft at Airbus, said discussions about Chinese competition happen nearly every week in the company.Airbus remains confident
Wagner stated that while he is not "extremely worried" about Comac's rise, Airbus is monitoring the situation and aims to keep its position as a market leader. The global aviation industry is expected to grow significantly, with the number of aircraft projected to reach 42,000 by 2045.Comac faces production challenges
Despite the potential for growth in the market, Comac still struggles to increase the production rate of the C919. Only 11 units of the aircraft have been delivered this year, even though it launched commercially in 2023. Additionally, the C919 is not yet certified for use in the Americas or Europe.Reliance on Western components
The C919 still depends on many Western-made parts, including engines from CFM, a joint venture between Safran and GE. Recent U.S. export controls on aerospace components to China may further complicate Comac's operations, though the full impact on exports of engines partly produced by American company GE Aerospace is unclear.China's strategic execution
China is actively working to reduce its dependence on Western components, according to Airbus. Wagner noted that China has a strong track record of executing strategic plans once they are set. Airlines are also watching the emergence of a new major player in commercial aircraft production, as they have long been concerned about delays from the current Airbus-Boeing duopoly.Airbus focuses on services
Airbus aims to maintain its leadership in the commercial aircraft market while expanding its services sector. The company expects its services, including maintenance, crew training, and digital solutions, to grow more than twofold to 420 billion dollars by 2045, with an average annual growth rate of 3.8%.Services to dominate costs
Maintenance and repair operations will represent the largest expense, reaching 217 billion dollars by 2045. Services that help airlines organize and perform repairs will amount to 104 billion dollars, while digital and connectivity services are expected to grow the fastest, reaching 27 billion dollars by 2045 with an average annual growth rate of 5.3%.Breakdown of service costs
Direct maintenance interventions on aircraft will cost 36 billion dollars, while aircraft modifications and modernizations will amount to 21 billion dollars. Training will account for 17 billion dollars, and Airbus is shifting its focus from being solely a product company to one that provides both products and services throughout the aircraft's lifecycle.
