During French President Jacques Chirac's tour to Beijing, the more beautiful his smile was, the uneasier US aeronautic giant Boeing got. All people familiar with the two aeronautic giants know that the contest between Airbus and Boeing has once again intensified during Chirac's China tour and marked an important point in the development of China's aviation industry.

To the great joy of Airbus, Air China and the China Eastern Airlines have decided to purchase 26 airplanes from it, including 20 A330-300s and 6 A319s. What's more, once China made the decision to purchase Airbus A380, it would indicate that Airbus materially surpasses Boeing in the prosperous Chinese aircraft market. While in the past three years, these two companies are upsides with one another in the amount of order forms they got.

The statistics data up to this June indicate that of China's 749 aircrafts in operation, 472 are Boeing airplanes (excluding the statistics of Hong Kong and Macao). While the figure up to this August indicates that there are altogether 250 airbus airplanes in the Chinese market (including mainland China, Hong Kong and Macao). 

However, last year, for the first time Boeing's sales volume of airplanes with over 100 seats lagged behind that of Airbus. So far, Boeing has not received any order form for its new generation 7E7 from China.

Boeing insists that the 7E7 with medium passenger capacity and low oil consumption represent the future of civil aviation. But Airbus does not think so and it stakes on the large-sized A380. To Chinese airliners, both of these two types of aircrafts cost a lot. A380 sells at 270 to 290 million US dollars and 7E7's marked price is 120 million US dollars.

According to the statistics of the China Civil Aviation Industry Corporation, China will need 1,295 new airplanes in the next 20 years, and the figures forecast by Airbus and Boeing are 1,600 and a much higher amount of 2,127 respectively.

This dizzy forecast amount is mainly based on the strong growths of China's three major airline companies in the future, which are the Beijing-based Air China, the Shanghai- based China Eastern Airlines and the Guangzhou-based China Southern Airlines. Of course, some other portion comes from smaller airline companies, too, such as Hainan Airlines, Shanghai Airlines, Xiamen Airlines and Yunnan Airlines.

What's more, Chinese airline companies would be able to join in international airway alliances formed by international airline companies with the further opening of aviation rights of China following China and the US's signing of aviation agreements, which is another factor influencing the forecast amount.

Since 2002, foreign investors are allowed by the Chinese laws to purchase no more than 49 percent of the shares of Chinese companies, under the condition that the share held by a single foreign investor should not exceed 25 percent.

All Chinese companies have set up the aim of joining in some international airway alliance. Meanwhile, every international airway alliance yearns to find a foothold somewhere in China.

China Southern Airlines is the first Chinese airways to sign agreements to join into international airway alliance. By 2005, China South Airlines will officially join the Skyteam Alliance and become one of the membership, such as Air France and Delta Air Lines Inc..

What's more, the field of regional aircrafts has also become the focus of competition between airplane manufacturers. Regional aircrafts with under-100 passenger capacity account for 30 percent of the world's major airplane market, and in contrast, the figure in China is only 12 percent. It is therefore forecast that China will need over 600 regional aircrafts in the next 20 years, which worth 14.4 billion dollars.

The latest survey data indicate that at present over 60 percent of Chinese airlines cover a distance of between 600-2,200 km in China, and the passenger amount of 80 percent airlines is under 100. At present, the two regional aircraft giants including Brazilian Airline and Bombardier Inc. from Canada are vying bitterly for the big cake of Chinese market.

(People’s Daily November 18, 2004)