$100 dollar a year peasants sending Boeing/Airbus Wake-Up Call

[Rubber Duck]

BBC NEWS | Business | Chinese plane business gets wings

China has launched a new commercial plane maker which it hopes will one day compete with the likes of Boeing and Airbus, state media have reported.

China Commercial Aircraft will aim to develop regional aircraft able to carry more than 150 passengers, Xinhua said.

With $2.7bn (£1.4bn) in initial funding, the Shanghai firm is backed by state and regional governments.

China is currently building a 90-seat regional jet but previous efforts at breaking into the market have failed.

Long wait

Beijing is keen to develop large-scale aviation capacity of its own to reduce its reliance on Airbus and Boeing as consumer demand for flying continues to surge in China.

Studies have suggested that demand for new planes from Chinese airlines will increase fivefold over the next 20 years, requiring about 2,650 additional aircraft.

Xinhua quoted Jin Zhuanglong, Commercial Aircraft's general manager, as saying that it would take the firm many years to do the necessary research to begin production.

"According to the history of Airbus and Boeing, the development and success of civil planes cannot be realised by relying on one or two generations," he said.

Analysts said it could take China up to 20 years to become a credible force in commercial aviation and that it would only succeed if it attracted sufficient private investment.

"They might be able to establish a presence in the business over the next 10 to 20 years if they nurture it with government cash and gradually offer shares to the private sector," said Richard Aboulafia, an aviation analyst with Teal Group.

The state-controlled Assets Supervision and Administration Commission is currently the firm's largest investor, holding a 30% stake.

Between them, the Shanghai regional government and China Aviation Corporation (AVIC), which has been spearheading existing aviation projects, hold 25%.

Other investors include state-owned mineral firms such as Chalco, Baoshan and Sinochem.

AVIC is developing the 90-seat ARJ21 jet which is due to begin testing later this year, with its first deliveries expected in 2009.

[261275]

The Russian's also have a plan of theyre own.

Russia's Grand Plan To Restore Its Glory
An aerospace shakeup is part of Putin's campaign to create global giants

Is it an opportunistic piece of financial speculation, or the start of a new strategic partnership? That's the question following recent reports that Russia's Vneshtorgbank (VTB) has laid out $1 billion for nearly 5% of the European Aeronautic Defence & Space Co. (EADS), which owns Airbus. Neither VTB nor EADS would comment.

Russia's Grand Plan To Restore Its Glory

[Rubber Duck]

I would put money on Airbus having strategic alliances in Russia, India and China within the next 5 years, and that much of the future manufacturing will be done in these places. America? Well I guess they will just continue with the flag waving for now.

[261275]

Pimp my airbus: Private Airbus A380 To Get A Gold Paint Job - Luxist

Prince Al-Waleed bin Talal bin Abdul Aziz al-Saud the soon-to-be owner of the first private Airbus A380 is sparing no expense to make his doubledecker toy the most fabulously extravagant jet on the planet. He spent over $300 million on the plane and is currently spending more than half that much money on customizing the jet. As we've mentioned before on this site, the jet will have a whirlpool bath and sauna, a dining room paneled in marble, a gym and a desert-themed fiber-optic mural. The most incredible touch might just be the approximately $58 million he is spending to have the plane painted in gold leaf on the outside. It not only sounds luxurious it also sounds a little dangerous if the sun bounces off it. The plane will be ready in two years, until then, the prince will have to content himself with his current ride, his own 747 jumbo jet.

[Rubber Duck]

But will it still fly?