China to Challenge Boeing and Airbus – Richard McGregor, Kevin Done, and Doug Cameron

From Financial Times:

China plans to mount a head-on challenge to the dominance of Boeing and Airbus in the global market for big passenger jets by setting up a state-owned company to build the aircraft.

A statement on the government’s website issued late on Sunday said the state council – the cabinet – had taken an “important strategic decision” to begin research and development to enter the market.

China is one of the biggest target markets globally for both Boeing and Airbus. The European group’s latest forecast places China in second place behind only the US by both the number and value of jets needed between 2006 and 2025 with a market for 2,929 large aircraft worth $349bn.[Full Text]

March 19, 2007 3:54 PM
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Categories: Economy