China's home-grown airliner delayed again

The delivery date of China's long-delayed first commercial jet airliner has been pushed back again, the manufacturer said yesterday, the latest setback for China's ambitions to challenge market leaders Boeing and Airbus.

Originally promised for 2007, the plane was most recently expected late this year, but Comac chairman Jin Zhuanglong said it would now be ready in the middle of next year.

"The development will not always go smoothly, and the programme cannot be accomplished at one stroke," Jin was quoted as saying in comments released by the company.

Jin blamed delays in the ARJ21 programme on China's inexperience in designing, building and certifying commercial jetliners. But he said the programme was still on track for delivery next year to launch customer Chengdu Airlines, which has ordered 30 of the planes.

Delays in the 90-seat ARJ21 could have knock-on effects for the development of the bigger and more ambitious C919, intended to compete with Boeing's 737 and the Airbus A320. The US Federal Aviation Agency will not issue crucial US certification for the larger plane until the ARJ21 is certified.

Beijing has built up state-owned "national champions" in industries from oil and telecommunications to steel and banking with monopolies, low-cost bank loans and other favours. The government defends the privileges as necessary for creating companies that can compete globally but they are no guarantee of success, with state firms still lagging far behind Western competitors.

China launched the ARJ21 project in 2002 as rising household incomes sparked a massive expansion of domestic aviation. State-owned Comac was formed to build the aircraft in Shanghai and a host of foreign contractors signed on to provide avionics and other crucial systems.

Jin said four prototypes had made 2,000 flights. Two customer aircraft were in final assembly and another was under construction, he said.

Despite its problems, Comac already has about 240 firm orders and options for the ARJ21, mostly from domestic carriers, but also from GE Capital Aviation Services and Lao Airlines. It has even more, about 380, for the 174-seat C919.

Beijing prioritises homegrown industries, which likely has given a boost to the sales. Beijing must approve all major airplane purchases and has considerable power over financing and other inducements that could sway domestic airlines into ordering the jets.

Equipment maker Honeywell has contracts with both planes, and its Asia-Pacific president for aerospace Briand Greer said delays were to be expected given the complexity of bringing together global suppliers and China's newness to the Western certification process.

"It's a very, very complex thing to do. From my perspective, working with Comac isn't any more difficult than working with the other guys," Greer said in a recent interview.

In some ways, working with Comac is better than with established companies such as Airbus and Boeing because the Chinese company has greater appreciation for suggested improvements, Greer said.