When China set off on its long-haul endeavour to build and fly a modern commercial airliner, it aimed high, with the long-term aspiration of taking on Western competitors Boeing and Airbus.
Now, with its home-grown C919 being used commercially by three domestic airlines and hopes that it will be used overseas, the Commercial Aircraft Corporation of China (Comac) will need to take a detour to learn from another foreign manufacturer to achieve its lofty goal, with Brazilian giant Embraer on its radar.
“Comac needs to compare notes with Embraer, whose rise from scratch to becoming a global aviation powerhouse is a source of inspiration,” said Paulo Filho, a former colonel and strategic studies expert with the Brazilian army.
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Embraer’s technology and sales prowess are much sought after, analysts said, with Comac aiming to increase the pace it can produce the C919, as well as future models, while also cramming normally decades worth of certification and overseas marketing into about 10 years.
“Beijing and Comac may court Embraer [to learn from] and [avoid] direct competition, when geopolitics makes Boeing and Airbus less willing to share their know-how,” said Jason Zheng, an analyst with Shanghai-based aviation information provider Airwefly.
For Embraer, it also hopes closer ties may help land new orders, with the manufacturer having sold 156 jets to nine operators in China over the years, with 85 still in operation.
Its cooperation with China dates back to 2003, when Embraer began production of its bestselling ERJ145 in Harbin in northeastern China’s Heilongjiang province.
The investment, which was the first of its kind in China by a foreign planemaker, was hailed by Beijing as a model for Global South tech cooperation.
And in March, China rolled out the red carpet as Embraer flew its most advanced E195-E2 to Tianjin on a worldwide demonstration tour, with Comac representatives – including aeronautical engineers who were behind the C919 – among the guests.
The Civil Aviation Administration of China (CAAC) had already certified the E195-E2 in August 2023.
In February, CAAC administrator Song Zhiyong also met with Tiago Sousa Pereira, the director of Brazil’s National Civil Aviation Agency, in Beijing to sign a memorandum of understanding to promote collaboration
In August in the Brazilian capital of Brasilia, aviation officials also renewed an agreement for mutual validation and certification recognition, covering design approval, production and technical support for exports.
In February, Civil Aviation Administration of China (CAAC) director Song Zhiyong (right) met with Tiago Sousa Pereira, the director of Brazil’s National Civil Aviation Agency, in Beijing. Photo: CAAC alt=In February, Civil Aviation Administration of China (CAAC) director Song Zhiyong (right) met with Tiago Sousa Pereira, the director of Brazil’s National Civil Aviation Agency, in Beijing. Photo: CAAC>
And aviation exchanges are expected to feature predominantly in deals and partnerships expected to be signed as President Xi Jinping visits Brazil next month.
In July, officials connected to Brazil’s Vice-President Geraldo Alckmin told the Post that Brazil could announce the sale of Embraer planes to China during the visit, but noted negotiations were ongoing.
By internationalising its designs and supply chains and with distinctive cost-effectiveness, Embraer has secured international orders, including many from US and Europe, while its partnership with American aviation firms also aided the Western certification process.
One particular inspiration for Comac, Zheng said, was Embraer’s sweeping privatisation in the 1990s and initial public offerings in Brazil and New York in 2000.
“These moves helped its international business take flight and shed its image as a state entity run by the Brazilian government,” he said.
“When Comac seeks to gain overseas recognition and try to steer clear of geopolitical turbulence, perhaps it can bring in private or foreign stakeholders and seek listings.”
Li Hanming, a US-based aviation analyst, said Embraer’s success is underscored by its international network.
“Embraer runs a complete team around the world, supporting deliveries to North America, Europe and China,” he said.
“But, assuming that Comac can sell the C919 overseas, it is yet to have a full corresponding engineering team to perform aftermarket services.
“Comac has a lot to learn from how Embraer knitted together a big network over the years.”
Differentiations in product segmentation are also tailored for different customer needs, Filho added.
“Embraer’s E2 series, particularly E195-E2 dubbed ‘Profit Hunter’, is recognised for fuel efficiency and modern avionics. It is for regional, short-haul routes, with its smaller size than the C919 enabling greater operational flexibility,” he said.
“The C919 is larger and targets the category seen as the preserve of the Airbus A320neo and the Boeing 737 Max narrowbodies.”
In a statement to the Post at the end of September, Embraer expressed confidence in China, saying demand was holding up well as regional jets are essential to serving remote regions and that big Chinese airlines preferred the E2 to operate feeder lines and funnel passengers to their main hubs.
“It’s necessary for Chinese carriers to operate aircraft of various sizes to handle fluctuating passenger traffic on different routes, as demand varies throughout China … the E2’s performance characteristics and adaptability mean it is a good choice for China,” Embraer said.
“Our current fleet in China goes deep into the capillaries of regional markets and serves numerous small and medium-sized airports. Embraer’s jets can complement Chinese aircraft in size and capacity.”
Beijing’s self-sufficiency mandate for aircraft manufacturing, though, would increasingly put Comac up against foreign makers, Embraer included, amid competition for orders, analysts said.
Embraer has not sold a jet in China since 2016 after it closed its plant in Harbin, and as domestic orders flow to Comac.
And according to a report in September, Brazilian carrier Total Linhas Aereas – a small cargo and charter airline – may be poised to become the first C919 buyer outside Asia.
An executive was quoted by Reuters as saying that Total Linhas Aereas had to look beyond Boeing and Airbus because of their inability to take new orders amid supply chain crunches.
“The C919 entering mass production in the near future and pursuit of overseas clients may challenge Embraer, particularly in a third country where price sensitivity and government-to-government ties are important,” Filho added.
Zheng also said Chinese manufacturers are proficient at emulating, and then eclipsing foreign competitors, as their “strategy is to learn and then to surpass”.
“Embraer is no stranger to the cut and thrust of the race in the air. Beijing’s drive to promote Comac and the C919 means patriotic cachet for Chinese carriers to buy domestic products and attractive price discounts and financing options for foreign clients,” Filho said.
“But Embraer is like both a mentor and a competitor [for Comac] and is still less affected than Boeing and Airbus [by Beijing’s push for the C919].”
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
