Rants and Podcast

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It’s WAY More Than IP

https://www.bloomberg.com/news/articles/2020-02-18/trump-says-china-should-be-allowed-to-buy-u-s-jet-engines

The untold story with this has nothing to do with engines or IP protection but the fact that COMAC is Chinese, government owned entity.

Hello WTO!

I think the real threat could be with the Chinese government using the soon to be certified COMAC airliners to support its Belt and Road initiatives. Can the airplanes be successfully dumped into developing nations at very low cost?

It’s a great story for CFM with ~$10B in revenue potential plus aftermarket support, but what is the potential downside for Boeing and Airbus and the cadre of leasing companies?

Granted, specs on COMAC airplanes are not competitive with Boeing or Airbus, but that will not always be the case.