This quote from Ryanair’s CEO reveals exactly why China’s Comac could shake up the airline industry. O’Leary doesn’t care about politics or national pride. His goal is to save money and his willingness to buy Chinese planes shows you how desperate airlines are for cheaper options.
So why does this matter? A 10 to 20 percent price cut on aircraft isn’t a minor change. For airlines that are operating on thin profit margins, this could mean millions in savings every year. When you’re buying hundreds of planes, those savings add up swiftly. Boeing has been dealing with safety issues and production problems with its 737 MAX planes. Airbus can’t build planes fast enough to meet demand. Airlines are stuck waiting years for new aircraft, and they’re getting frustrated.
The Airbus A320neo lists for around $110 million, while Boeing’s 737 MAX costs about $120 million. A 15% discount would save airlines $16-18 million per aircraft. For carriers like Ryanair, which operates over 500 planes and regularly orders in batches of 100+, we’re talking about savings in the billions.
This creates a very fine opportunity for Comac to swoop in. Even if their planes aren’t perfect, airlines might be willing to take a chance if the price is right and the planes are available. However, Comac faces real challenges. Their planes still need approval from European and American safety regulators, which could take 3-6 years. Plus, their C919 aircraft relies heavily on American parts, 48 suppliers from the US compared to just 14 from China. If trade tensions escalate, this could kill their program.
The bigger spectrum is that China is using the same playbook it’s used in other industries. This includes government backing, lower prices and gradual quality improvements. It worked with solar panels, smartphones and electric cars. Who’s to say that Aviation can’t be next. For travelers, this could eventually mean cheaper flights. For Boeing and Airbus, this is some real competition for the first time in decades. The aviation industry’s cozy two-company setup might finally be coming to an end.
