China’s Commercial Aircraft Corp. of China, better known as Comac, and Russia’s United Aircraft Corp. (UAC) announced a formal agreement Monday in Shanghai to develop, build and sell a wide-body (dual aisle) passenger jet that will compete with existing planes from Boeing Co. (NYSE: BA) and Airbus. Comac recently completed the first test flight of its single-aisle C919 jet.
The two companies unveiled their plans more than two years ago to build a wide-body plane that can carry 280 passengers up to 7,500 nautical miles. The original plan was to have the plane ready for test flights in 2022 and delivery in 2025. That timetable has now been pushed out three years, with the first flight in 2025 and first delivery in 2028.
Boeing has estimated that the wide-body market will total 9,100 new aircraft for the 20-year period to 2035. Airbus has estimated a total market of 7,500 for the same period.
Regardless of which estimate you choose to believe, that’s a $2 trillion market over the next two decades.
Boeing has held a solid edge in the wide-body market for a long time, but Airbus has begun to make inroads with its A330 and A350. Boeing’s 777, 777X and 787 have been the top sellers. The Comac/UAC wide-body, called the C929, is aiming to take 10% of the market for the A330 and Boeing 787 by offering a plane with a 10% to 15% better cost structure.
The C929 may have timing on its side. By the time the plane is ready for test flights, the slack period for aircraft sales may be over, or nearly so. If that turns out to be the case, the plane could make some noise in the market.
If the market is still weak, well, Boeing and Airbus will be just that much weaker and price competition will be fierce. China would love to fight either or both competitors on price. That’s a fight Comac/UAC probably believes it can win.
Boeing’s stock traded about flat in the noon hour Tuesday, down just 0.03% at $183.62, in a 52-week range of $122.35 to $187.21. The stock’s consensus 12-month price target is $188.62.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.