|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||151.45 - 152.41|
|52 Week Range||106.48 - 152.41|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||34.79|
|Forward Dividend & Yield||1.86 (1.25%)|
|Ex-Dividend Date||Apr 13, 2019|
|1y Target Est||N/A|
A humbling setback for Boeing.. The company reporting its worst annual net orders in decades on Tuesday, stripping Boeing of the crown it held for eight years as the world's largest plane maker. That honor now goes to its archrival, Airbus. Boeing's orders and deliveries collapsed last year as airlines globally grounded their fleets of Boeing 737 MAX jets after two fatal crashes involving the narrow-body jet. Boeing later halted its production. As a result, the company got trounced. Boeing landed just 54 plane orders in 2019 versus 768 orders for Airbus. The U.S. aerospace giant's deliveries fell by more than half to 380 planes. Compare that to its European rival's record 863 jets. Final deliveries are crucial because that's when plane makers earn most of their revenue. Boeing has been losing around $1 billion a month due to the grounding. There's little clarity as to when it's likely to get the blessing from regulators to return the MAX to service. DESPITE THAT, American Airlines said TUESDAY it hopes to resume service of its 737 MAX jets in June. And Ryanair said it could start getting its first deliveries of the 737 MAX by April. The Irish carrier has up to 210 of those jets on order.
Bombardier, which sold control of the A220 program to Airbus in 2018 for a token Canadian dollar as part of broader efforts to improve its financial footing, said the venture needed more investment and might be subject to a writedown during fourth-quarter results next month. Bombardier also said it is "reassessing" its minority stake in the A220 jet program, which will require additional cash to ramp up production.
China is the world's largest market for new jets, and longtime Boeing customer Xiamen Airlines is looking at rival Airbus A321 jets
(Bloomberg) -- Bombardier Inc. fell the most on record after warning of disappointing fourth-quarter sales and revealing that it may exit a joint venture with Airbus SE that makes the A220 jetliner, potentially triggering a major writedown.A ramp-up in A220 production will require additional cash investment, pushing back the break-even point and generating lower returns across the lifetime of the project, Bombardier said in a statement Thursday. The value of the A220 joint venture is likely to be diminished and the amount of any accounting charge will be disclosed with full 2019 results next month, the company said.The potential end of Bombardier’s involvement in the A220 program is combining with new stumbles in the company’s rail business to undermine a once-great name in manufacturing -- just when investors thought they were poised to reap the rewards of a difficult turnaround effort. Walking away from the A220 would close the book on Bombardier’s involvement in an aircraft program in which the company invested more than $6 billion.“The joke continues. Anyone involved with the story has a gun to their head,” said John O’Connell, chief executive officer of Davis Rea Ltd., who doesn’t hold Bombardier shares or bonds. “This company has been a disaster my whole career and I’m almost ready to retire.”Bombardier plunged 30% to C$1.25 at 12:56 p.m. in Toronto after sliding as much as 39% for the biggest intraday tumble on record. That dragged shares to the lowest level in almost four years.The company’s 7.85% bonds due 2027 fell 6.2 cents, the most on record, to 96 cents on the dollar, yielding 8.6%, according to Trace data. The $1.5 billion in notes due 2025 dropped 3.9 cents to 98.1 cents on the dollar to yield 8%, the highest since Oct. 31.Disappointing SalesBombardier, which is refocusing its operations on rail equipment and business jets, said fourth-quarter sales would be $4.2 billion, trailing the lowest analyst estimate in a survey by Bloomberg.The results were dragged down in part by new challenges in the company’s faltering rail division, which generates about half of sales. The business got a black eye this month when New York removed 300 Bombardier-made subway cars from service because of door glitches. For the fourth quarter, the manufacturer said it would take a $350 million accounting charge because of problems in London, Switzerland and Germany.The timing of milestone payments also clipped results late last year, Montreal-based Bombardier said. So did the delay of some deliveries of the Global 7500 business jet into the first quarter of 2020.Liquidity remains strong, with year-end cash on hand of roughly $2.6 billion, Bombardier said. But the company is considering alternatives to accelerate debt reduction and strengthen its balance sheet. Full results are scheduled for Feb. 13.“The final step in our turnaround is to de-lever and solve our capital structure,” Chief Executive Officer Alain Bellemare said in the statement. “We are actively pursuing alternatives that would allow us to accelerate our debt paydown.”Trouble is, Bombardier may be running out of sizable assets to sell to meet its cash needs, said Bloomberg Intelligence analyst George Ferguson.“Bombardier needs to get its rail business -- the earnings and cash-flow driver -- on track, while restructuring its aviation division in a soft business-jet market,” he said in a report.Commercial-Jet RetreatThe potential end of Bombardier’s involvement in the A220 program would cap the company’s broader retreat from commercial-plane manufacturing.Bombardier ceded control of the A220 last year to Airbus for no upfront cash. The plane -- originally known as the C Series -- won praise for its fuel-efficient engines, composite wings and large windows. But the program ran more than two years late and about $2 billion over budget, and Bombardier had trouble finding buyers in an industry dominated by Airbus and Boeing Co.Airbus said it would continue funding the A220 program “on its way to break-even.” The European aerospace giant owns a 50.01% stake in the regional jet, with Bombardier retaining 31% and state-backed Investissement Quebec holding some 19%.The jet added 63 orders in 2019, with 105 currently in service and a backlog of close to 500 planes. Airbus will begin producing the A220 on a second assembly line this year at its factory in Mobile, Alabama.Bombardier agreed last year to sell a plant in Belfast, Northern Ireland, that makes wings for the A220. The buyer, Spirit AeroSystems Holdings Inc., is seeking to boost its exposure to Airbus programs after suffering as a supplier to Boeing’s grounded 737 Max.The Canadian company also agreed to sell its regional-jet program to Mitsubishi Heavy Industries Ltd.To contact the reporters on this story: Siddharth Philip in London at firstname.lastname@example.org;Paula Sambo in Toronto at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, ;Brendan Case at email@example.com, Christopher Jasper, Tony RobinsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Airbus delivered more commercial airplanes in 2019 than any year in its history while rival Boeing Co (NYSE: BA) saw its deliveries plunge to an 11-year low. Boeing delivered 380 commercial aircraft last year, its lowest annual total since 2008, when it delivered 375 planes. In 2018, Boeing delivered 806 aircraft, a record for the company.
(Bloomberg Opinion) -- The billionaire bromance between Donald Trump and France’s richest man, Bernard Arnault, has surely been one of the more unexpected consequences of the U.S. president’s global trade war. Back in October, Trump lavished praise on the king of luxury — calling him by turns an artist, a great businessman and a gentleman — after LVMH Moet Hennessy Louis Vuitton SE opened a handbag factory in Texas. The symbolism was rich, considering Trump had just days earlier removed leather goods from a list of European products worth $7.5 billion that were hit with higher U.S. import tariffs. Trump wasted no time in spelling out the link: “I can’t tax him, because he moved to the United States.”The mood has cooled since then. Leather handbags and luxury items worth $2.4 billion are now back on the U.S. president’s hit list as part of potential tariffs targeting France, which the White House says is discriminating against U.S. firms such as Apple Inc., Facebook Inc. and Amazon.com Inc. with a new digital-services tax. The U.S. has also threatened more tariffs targeting the European Union related to the long-running dispute over aircraft subsidies between Boeing Co. and Airbus SE. Brussels has dispatched its top trade official this week to try to calm tensions, but there’s every chance the spat could worsen. For a president fighting impeachment and campaigning for re-election, French wines and German cars are tempting political targets.That has put Trump-whisperers like Arnault in an awkward position. While by no means the chief culprit of the EU’s trade surplus with the U.S. that Trump so hates, luxury products sold by LVMH such as wine and spirits are France’s key export sector after aerospace. The U.S. market brings in about 24% of the group’s revenue, almost as much as France and Europe put together. Shrewd re-jigging of the supply chain, and the luxury industry’s ability to pass on price increases to its well-heeled buyers, have so far helped keep the wolf from the door. LVMH’s pledge to create 1,000 jobs in Texas, even if a “Made In the USA” label leads to upturned noses, has made Trump less likely to want to penalize the company with luxury levies. He’s also less likely to oppose Arnault’s proposed $16 billion acquisition of iconic U.S. jeweler Tiffany & Co.It’s not just LVMH: Airbus, one of Trump’s favorite punching bags and the biggest brand in European aerospace, pulled off a similar feat. Its local presence in Alabama has spared the aircraft it produces in the U.S. from the 10% EU tariffs (and likely deterred Trump from pricier duties). Considering France is being singled out for harsher punishment, the fact that Paris-listed LVMH and Airbus are among the top five best-performing euro-area blue-chip stocks since Trump arrived in the White House will comfort French President Emmanuel Macron.But how much longer can moving resources into the U.S. keep delivering results? Airbus is scrambling to continue ramping up production in Alabama, where its investment now totals $1 billion, but that hasn’t been enough to silence the threat of higher tariffs. For the luxury-goods sector, not everything “Made in France” can be “Made in the USA.” LVMH is clever enough to sell locally-made U.S. sparkling wine in funky single-serve bottles, but it will never be the same as champagne. European corporate takeovers of U.S. targets, while rising, are vulnerable to Trump’s unpredictability.Europe’s top multinationals may have also been helped by the fact that Trump’s focus so far has been primarily on China. Being a secondary target hasn’t been too bad for the EU: Tit-for-tat tariffs between China and the U.S. actually saw France get a total export boost to both countries worth an estimated 0.3% of GDP, according to Nomura research. (For Germany it was 0.1%.)It’s clear that exporting high-value items that are difficult to substitute, such as aircraft or luxury goods, is a natural defense against trade wars; Airbus was also helped by Boeing’s troubles. But China may now be receding into Trump’s rear-view mirror following the signing of a phase-one trade deal. If Europe takes its place as Trump’s chief concern, things will be different. While European investment into the U.S. increased by $226.1 billion in 2018, to $3.0 trillion, the U.S. trade deficit with the EU also hit a record that year. Tariffs on German cars — which would be far harder to pass on to consumers than for a bottle of Dom Perignon, or an A320 airplane — remain an ugly prospect, even after an increase in their local U.S. production over the past decade.Europe’s CEOs will be praying the EU can convince the White House that an escalation in tariffs would hurt American jobs, saddle the consumer with higher prices and deter hiring and investment. If that’s not enough, then maybe the next delegation the EU sends should include Arnault and the gift of a few handbags — Made in USA, of course.To contact the author of this story: Lionel Laurent at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Toyota Motor Corp. is making a $394 million investment in Joby Aviation, one of the handful of companies with the seemingly implausible goal of making electric air taxis that shuttle people over gridlocked highways and city streets.Toyota is the lead investor in Joby’s $590 million Series C funding, alongside Baillie Gifford and Global Oryx and prior backers Intel Capital, Capricorn Investment Group, JetBlue Technology Ventures, SPARX Group and its own investment arm, Toyota AI Ventures. The deal, for now, makes the Santa Cruz, California-based Joby the best-funded “eVTOL” (electric vertical take-off and landing) startup in a booming category that must overcome significant regulatory hurdles and concerns about passenger safety and noise, bringing the total money it has raised to $720 million.“Air transportation has been a long-term goal for Toyota, and while we continue our work in the automobile business, this agreement sets our sights to the sky,” said Toyota President and Chief Executive Officer Akio Toyoda. “As we take up the challenge of air transportation together with Joby, an innovator in the emerging eVTOL space, we tap the potential to revolutionize future transportation and life.”Over the past year, the 82-year Japanese automaker has deepened its interests in futuristic transportation technologies. Last year it backed Recogni Inc., a Silicon Valley maker of autonomous vehicle systems, and May Mobility, an Ann Arbor, Michigan-based operator of self-driving shuttle buses. At CES earlier this month, Toyota announced its intention to build a 175-acre community, or “Woven City”, at the base of Mount Fuji to serve as a showcase for self-driving cars and other innovations in transportation.Joby is an emerging player in a field of air-taxi companies that includes Airbus SE; South Korean automaker Hyundai, which recently announced plans to design and produce an air taxi with Uber Technologies Inc.; and Kitty Hawk, the brainchild of Alphabet co-founder Larry Page, which is developing an air taxi in conjunction with Boeing Co. Volocopter, a startup in Germany, is backed by Zhejiang Geely Holding Group Co., the biggest investor in Mercedes-Benz maker Daimler AG and owner of Swedish manufacturer Volvo and British automaker Lotus.In addition to announcing the funding, Joby released an image of its prototype aircraft. The vehicle, which looks like an oversized toy drone, sports six electric propellers and is capable of flying 150 miles on a single charge, at speeds of up to 200 miles per hour, the company said. It’s designed to carry four passengers and a pilot, an approach that differs from that of rivals such as Kitty Hawk, whose two-seat “Cora” vehicle is intended to fly autonomously, without an onboard pilot.Joby says it will manufacture prototypes at a facility in Marina, California, near Monterey, but plans to tap Toyota’s famous manufacturing prowess to build “highly reliable complex hardware at increased scale,” said Paul Sciarra, Joby’s executive chairman and a co-founder of Pinterest.In December, Joby and Uber announced a separate partnership to jointly introduce Joby air taxis in at least two cities, with customers booking and paying for flights via the Uber app.The most pressing challenge for Joby, which now has around 400 employees, is obtaining certification from the Federal Aviation Authority and other regulatory agencies around the world. Joby says this is a three- to five-year process that it formally began in 2018.Over the past few years, both the FAA and the European Union Aviation Safety Agency (EASA) have moved to support commercial development of air taxis and released special guidelines to regulate small aircraft, with rules that differ from those governing conventional helicopters and fixed-wing airplanes. Much work remains, said Robin Lineberger, head of the Aerospace & Defense practice at Deloitte, including creating a system to manage municipal airspace in both normal and poor weather conditions and building physical infrastructure such as mini-airports that can support frequent takeoffs, landings and aircraft recharging.“The 2023 to 2025 time frame is fairly straightforward” for small demonstrations, Lineberger said. But he looks to 2035 “as a practical date for having a ubiquitous operational fleet in the thousands—not the hundreds—with a well-established framework for regulatory approval.”Sciarra and Joeben Bevirt, Joby’s founder and CEO, say they’ve spent significant time with Toyoda in Toyota City, Japan, as well as with other Toyota executives at Joby’s headquarters on a windy, 500-acre ranch in the hills north of Santa Cruz. They would not say whether they offered them a ride on the prototype aircraft, but Bevirt said: “They’re a loyal and tenacious company and this has been a dream of the Toyoda family for a very long time.”To contact the author of this story: Brad Stone in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Dimitra Kessenides at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Boeing’s 2019 deliveries plummeted because of problems with the 737 MAX. But looking deeper into 2019 deliveries shows another trend Boeing investors should follow in coming quarters—falling Chinese deliveries.
Airbus sees enough demand for its wide-bodied A330neo passenger jet to keep production stable, Chief Commercial Officer Christian Scherer told Reuters on Wednesday. With some airlines seen unlikely to take delivery of all the jets they have ordered, there has been speculation Airbus would have to trim production of the latest version of its most profitable long-range jet despite a recent flurry of new sales. "Considering the demand I see on the A330neo I see no need to cut production levels," Scherer told Reuters on the sidelines of an Air Canada event in Montreal.
(Bloomberg) -- Chinese flexible display maker Royole Corp. has filed confidentially for a U.S. initial public offering to raise about $1 billion, people familiar with the matter said.The startup seeks funding to expand its sales and marketing and research facilities, the people said, requesting not to be named because the matter is private. It had originally planned to raise that amount via a private financing round at a valuation of about $8 billion, people familiar with that deal said in March. But the Chinese company is now tapping U.S. markets after liquidity tightened during a downturn in China’s venture capital sector, the people said.Royole, known for manufacturing the world’s first commercial foldable phone, competes with Samsung Electronics Co. and BOE Technology Group Co. to produce bendable screens using cutting-edge organic light-emitting diode technology. The company, which gave away wraparound-screen hats at the 2018 World Cup in Russia, this month unveiled a smart speaker that packs a bendable display around a cylinder.It’s unclear what timeframe the company’s looking at, the people said. A Royole representative declined to comment.Royole is regarded as one of a coterie of Chinese technology startups working to dismantle the decades-old image of China as a clone factory by leading in design and innovation. Like Huami and Insta360, these upstarts aim to take advantage of home bases in China close to where devices are manufactured, developing products faster and more cheaply.Founded by Stanford alumni Bill Liu, Peng Wei and Xiaojun Yu, Royole needs capital to plow back into research and expand production. The company, valued at about $5 billion in a previous funding round, invested 11 billion yuan ($1.6 billion) into a flexible display plant in Shenzhen that commenced production in June. Royole is working with Airbus to install displays in planes and also collaborates with clothing, furniture and kitchen-supply customers. Royole has said it secured a deal with Louis Vuitton that will see the two companies putting flexible screens on handbags of the future.Its full line of products encompasses head-mounted displays intended for use as so-called mobile theaters and other wearable flexible displays. The company even has a smart writing pad that it sells on Amazon.com, JD.com and in stores across China, the U.S. and Europe.Royole’s earlier investors include Knight Capital, IDG Capital, Poly Capital Management, AMTD Group, the funds of Chinese tycoon Xie Zhikun and the venture capital arm of the Shenzhen city government.Read more: The Trade War Spurs China’s Technology Innovators Into Overdrive(Updates with details on Royole’s inception from the fifth paragraph)To contact the reporters on this story: Julia Fioretti in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum MurphyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Boeing is reportedly making massive concessions to Boeing 737 Max customers, as total orders declined last year for the first time in decades.
(Bloomberg) -- Boeing Co. lost the title of world’s largest planemaker as the 737 Max grounding sent the company to its biggest defeat in a 45-year duel with Airbus SE.Deliveries tumbled to just 380 jetliners last year, Boeing said in a statement Tuesday. That was less than half of Airbus’s tally of 863 planes.For the first time in at least three decades, Boeing also finished the year with negative net orders by one measure. The gross sales of 246 jets that it garnered were surpassed by those taken off the books due to order conversions, cancellations and an accounting adjustment, Bank of America Corp. analyst Ron Epstein said in a report.Boeing’s epic trouncing underscored the depth of the Max crisis after global regulators halted commercial flights and deliveries of the model in March, following two crashes that killed 346 people. Airbus’s victory was its first since 2011 and 10th since 1974, when the European company’s A300 jetliner made its commercial debut.Last year, Boeing shipped only 127 of its single-aisle 737 planes, lagging Airbus’s narrow-body total of 690 jets. But the Chicago-based company scored a win in twin-aisle jets, delivering 253 -- 80 more than Airbus.Dreamliner FlurryBoeing finished the year with a flurry of 787 Dreamliner shipments that will help bolster its cash. The company handed over 45 of the marquee long-haul jets in the fourth quarter. That was five more than estimated by Cowen & Co. analyst Cai von Rumohr, who said “the 787-driven delivery beat” could add about $1.5 billion to revenue.Boeing reversed losses after the release of the data, which also showed a surge in deliveries of satellites and military aircraft to 231 units from 98 a year earlier. The shares climbed less than 1% to $332.82 at 1:58 p.m. in New York.“Underlying deliveries were strong outside of the 737 Max,” Sheila Kahyaoglu, a Jefferies analyst, said in a note to clients.Orders for the Max, Boeing’s best-selling jet, have been dented by amid uncertainty over when regulators will finally clear the plane to resume flights.Net of cancellations and conversions, Boeing recorded a total of 54 jetliner sales compared with 768 for Toulouse, France-based Airbus. Including an accounting rule that restricts the revenue U.S. companies book from deals at risk of not materializing, the Boeing tally shrank to negative 87 orders for the year.(Updates with analyst comment in third paragraph)To contact the reporter on this story: Julie Johnsson in Chicago at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Tony RobinsonFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Boeing's gross orders plunged 77% to 246 in 2019, while net orders after cancellations or conversions were just 54 airplanes compared with 893 the previous year. After an accounting adjustment representing jets ordered in previous years but are now unlikely to be delivered, Boeing said its net total for orders this year sank to a negative 87 airplanes. As a result, Boeing's book-to-bill ratio, which measures orders against deliveries, came in at a negative 0.23 in 2019.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.California winemakers are lending support to their French, Spanish and Italian counterparts in a plea to eliminate tariffs on the beverage after a trade standoff involving Airbus SE spilled over into duties on European wine.“Wine should not be targeted with tariffs of any kind in trade disputes unrelated to the wine trade,” the Wine Institute, which represents 1,000 California vintners, and the European Committee of Wine Businesses said in a joint statement Tuesday.In October, President Donald Trump imposed tariffs on as much as $7.5 billion of European products, including wine, in retaliation for illegal government aid to Airbus. Last week Spanish vintners said they may suffer drops in U.S. revenue of as much as 50% due to the duties.The U.S. and European Union have traditionally kept tariffs low on each other’s wine exports, boosting jobs, investment and consumer choice, the trade groups said.“We call on the United States and the European Union to further open access to each other’s markets by immediately eliminating all tariffs on wine,” the trade groups said. “Tariffs increase costs and act as added taxes.”To contact the reporter on this story: Thomas Mulier in Geneva at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, John LauermanFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
The US aircraft maker received new orders for 246 aircraft — the lowest number in at least two decades — which fell to a negative 87 after cancellations. Before the grounding of the 737 Max, Boeing had been predicting deliveries of between 895 and 905 commercial jets for 2019. The US aircraft maker could now struggle to retake the lead in orders this year from Airbus, whose popular A320 family of single aisle jets is fast outselling the 737 family.
India's aviation regulator has given IndiGo more time to replace the Pratt & Whitney engines on its fleet of Airbus A320neo planes which have been linked to in-flight engine shutdowns, a statement released by the watchdog said on Monday. The Directorate General of Civil Aviation (DGCA) in November said IndiGo, the country's largest airline, must replace the engines by January 31, after four incidents of in-flight engine shutdowns within a week caused "serious concern". The DGCA has now given IndiGo until May 31, saying that while the regulator was obliged to set up a tight deadline it was also intended to "spur frenetic action on the part of all stakeholders".
Boeing’s incoming CEO Dave Calhoun stands to make millions if he can get the troubled MAX jet back into service. He’ll also be paid less than his predecessor.
Airbus posted higher airplane orders for 2019 but failed to keep pace with deliveries for the second year in a row after axing its A380 superjumbo program and clearing its books of some defunct deals left over from a faltering industry order boom. Airbus confirmed it had delivered a record 863 aircraft in 2019, up 7.9%, after Reuters exclusively reported the annual total on Jan 1. The figures put Airbus on course to beat Boeing in both orders and deliveries for the first time since 2011 as Airbus's U.S. rival grapples with a crisis over its grounded 737 MAX.
Airbus delivered a record 863 commercial aircraft to 99 customers in 2019, beating its previous output record set in 2018 by 8% as rival Boeing continued to struggle from the fallout of the grounding of its 737 MAX jet. Boeing is scheduled to report production results next week. Airbus posted a total of 1,131 new orders.
BEIJING/PARIS (Reuters) - Development of China’s C919 single-aisle plane, already at least five years behind schedule, is going slower than expected, a dozen people familiar with the programme told Reuters, as the state-owned Commercial Aircraft Corporation (COMAC) struggles with a range of technical issues that have severely restricted test flights. Delays are common in complex aerospace programmes, but the especially slow progress is a potential embarrassment for China, which has invested heavily in its first serious attempt to break the hold of Boeing and Airbus on the global jet market. COMAC engineers miscalculated the forces that would be placed on the plane's twin engines in flight - known in the industry as loads - and sent inaccurate data to the engine manufacturer, CFM International, four people familiar with the matter told Reuters.
BEIJING/PARIS (Reuters) - Development of China’s C919 single-aisle plane, already at least five years behind schedule, is going slower than expected, a dozen people familiar with the program told Reuters, as the state-owned Commercial Aircraft Corporation (COMAC) struggles with a range of technical issues that have severely restricted test flights. Delays are common in complex aerospace programs, but the especially slow progress is a potential embarrassment for China, which has invested heavily in its first serious attempt to break the hold of Boeing and Airbus on the global jet market. COMAC engineers miscalculated the forces that would be placed on the plane's twin engines in flight - known in the industry as loads - and sent inaccurate data to the engine manufacturer, CFM International, four people familiar with the matter told Reuters.