Ryanair threatens to ‘reassess’ a $30 billion Boeing order after getting U.S. flak for considering China’s COMAC jets
Ryanair, the cheap Irish plane, can think About comac of china as a Boeing replacement.
In a letter to democratic congressman Raja Krishnamoorthi, CEO Michael O'Leary said Ryanair would “re -evaluate” the Boeing's next -time as if US tariffs would increase the cost of the company's planes. The plane currently has 330 plane in the bouquet in Boeing; The order is estimated to cost about $ 30 billion.
The aviation sector quickly becomes a major battlefield in the trade war between the US and major trading partners. Boeing and Airbus, the current duopoly, are now in contact with how tariffs on their supply chains and international sales – with interruption of potential door opening to other suppliers, such as COMAC.
In late March, O'Leary Says He is open to buying C919, a narrow plane made by Comac, if the price is right. C919 is China's answer to Boeing 737 and A320 of Airbus.
That set alarm alarms in Washington. “US and European planes should not be considering the purchase of planes from Chinese military companies,” Krisnamoorthi Reported Written in a letter to O'Leary, citing Comac's relationship with the Chinese military. The congressman is the leading Democrat on a home committee examining the “strategic competition” with the Chinese Communist Party.
O'Leary, in his letter to Krishnamoorthi, said he would consider ordering the Chinese plane if it was 10% to 20% cheaper, but noted that the plane was not currently in the discussions in COMAC, according to Reuters first reported Having a letter.
Ryanair did not immediately respond to a request for comment.
Problems with Boeing
Boeing is increasingly finding itself in a tricky position amid trading tensions. The company is one of the leading US exporters, putting it in crosshairs of governments that are angry with Trump's new trade policies.
In April, China abandoned three completed Boeing planes reserved for Chinese airlines. Boeing CEO Kelly Ortberg is now looking for alternative buyers for 50 planes reserved for Chinese customers.
China has once in the most important Boeing non-US market, although safety concerns have dragged sales in recent years.
However, Beijing may have offered an olive branch to the US Planemaker as officials are trying to manage the intense trade war in Washington. “Chinese and Boeing planes in the United States suffered so much,” China's commercial ministry Says In an unspoken statement on Tuesday, Beijing added that Beijing wanted to support “normal business cooperation between businesses of the same [the U.S. and China]. “
Who is interested in comac?
Ryanair's O'Leary is the latest Chief Executive of Aviation to consider COMAC as an alternative to Boeing-Airbus Duopoly.
Ronald Lam, CEO of Hong Kong Airline Cathay Pacific, is predicted an “ABC” future – that is, Airbus, Boeing and COMAC – for the aviation sector in a Fate Last year's conference.
The AirAsia, the Malaysian low-cost carrier, also in conversations with comac. CEO Tony Fernandes said the need for more planes to increase its A321 fleet.
To date, most COMAC planes have been used in China. Only a few of the non-Chinese planes use COMAC planes. Vietnamese Airline Vietjet Recently The C909, a smaller jet from the COMAC began to run for shorter flights. Indonesia's Lao Airlines and Transnusa Airlines also operate on C909, formerly known as ARJ21.
There is no Chinese airplane currently using C919. China Eastern Airlines, China Southern Airlines, and Air China are currently using jet -in small numbers.
But COMAC still has a long hill to climb before the jets get the international acceptance. The main regulators still need to prove COMAC planes – which can take years, if they come. COMAC planes are currently certified to fly to Hong Kong and Mainland China.
A report from the French magazine L'usine nouvelle Na -Published On Monday the European Union Aviation Safety Agency said Europe's regulator, could take at least another three years.
Florian Guillermet, the regulator's executive director, said the certification would not happen this year. COMAC began to work at EASA about four years ago.
This story was originally featured on Fortune.com
