CFM Picked to Power China’s Future Plane

The most important part of China’s future big plane – engine – has found its manufacturer. CFM International, a joint venture between GE and France-based Safran SA, was chosen to power China’s big planes in the future.

The representatives of Commercial Aircraft Corporation of China, Ltd (COMAC) and CFM International signed the agreement about providing power device for the C919 big plane on December 21, 2009. COMAC chose the LEAP-X1C engine as the only foreign startup power device supplier for the C919 plane. Jean Paul Herteman, CEO of Safran SA, said that this contract was valued at 5 billion US dollars. The total value of the orders in the next 30 years will reach 15 billion US dollars.

However, when CFM International bit into the big pie, the Chinese party was happy to gain the authorization to share the technology of this advanced engine. AVIC Commercial Aircraft Engine Co., Ltd (ACAE) also signed an understanding memorandum with CFM International, forming the plan of establishing the assembly and trial production lines for LEAP-X1C engine.

Better performance than Boeing of the same type

According to the insider from COMAC, the project of choosing foreign engine supplier for C919 plane was launched in February 2009. After about 10 months’ review, CFM International finally won the bidding.

CFM International is the largest aircraft engine manufacturer in the world. It was a joint venture between Snecma under Safran SA and GE which halve the corporate shares.

The experts thought that the C919 plane will have better performance in saving oil than Airbus 320 and Boeing 737NG, which are of the same type with C919. Therefore, it has strong competitive power. Presently, Airbus 320 and Boeing 737NG are using CFM56 engines.

LEAP-X1C engine is the new generation of engines developed by CFM International. Compared with the CFM56 engine, this new engine consumes 16% less oil and the emission of CO2 is 16% smaller as well.

According to Zhang Qingwei, board chairman of COMAC, the C919 plane has incorporated the advanced technology in its engine. In addition to the advantages brought about by the integrated propulsion system, the C919 plane will possess great competitive power in the global market. It was estimated that 2000 planes will be sold in 20 years.

Exchange market for technology

On December 21, 2009, ACAE reached the agreement with CFM International, according to which both companies will set up a production line for assembling and testing the LEAP-X1C engine.

The contract also stipulated that ACAE and CFM International will produce and assemble the engines in China. Moreover, CFM International will assist ACAE in building the assembly line and test devices with the world level. It will also provide the technology and quality management system needed for realizing the goal.

Presently, the UK and the USA are the only two countries with the technological advantages of engines for commercial aircrafts. China is far behind these developed countries in the aircraft engine technology. Therefore, it was believed that the Chinese party hoped to exchange the market for the technology. CFM International won the bidding and gain promising huge profits. The Chinese companies, in exchange, got the technology they longed to introduce and mastered. Therefore, such a contract can be said to be a win-win strategy.

Early in March 2009, ACAE, which is mainly responsible for the engine of the big passenger aircrafts in China, formed a United Working Commission with CFM International and conducted the studies about the feasibility of setting up the assembly line and joint venture. Now, the two parties have formed a working team to appraise the size and efficiency of the assembly line and testing system.

According to the schedule, the engine will be installed in the sample aircraft in 2012. The C919 plane will get the airworthy certificate in 2016. Presently, CFM International has finished the pneumatic machine test for the core parts and fans of the LEAP-X series of engines. The test of the integrated machine has already been launched.

However, ACAE didn’t give out the detailed share proportion of the joint venture assembly line. According the analysts, the Chinese party certainly wants to have 50% shares of the joint venture and maybe they are still under negotiation for the details.

For ACAE and its parent company Aviation Industry Corporation of China (AVIC), half of shares of the joint venture didn’t simply mean the exchange with the market for the technology. Lin Zuomin, general manager of AVIC, hoped that his company and CFM International are equal to each other in their cooperation. Then they can work together to develop the international market and find access to the higher-level cooperation.