China's Big Show This Week In Zhuhai

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Air Show China started Tuesday in Zhuhai and it may be the one to watch in terms of how the market there will evolve. China seems determined to be a player in aerospace and will use this show to announce "hundreds" of orders for the Aviation Industry Corp. of China's (AVIC) Comac C919. Most of the customers for the single-aisle competitor for the A320 and 737 will likely be domestic carriers, but those types of numbers will undoubtedly hurt the projections being made about China as the burgeoning half-trillion-dollar market for airliners goes into the next two decades. Frost and Sullivan analyst Julius Yeo told Bloomberg the C919 is likely to be every bit as good as its European and American competitors (not to mention those from Russia, Canada and Brazil) and that will cut into bottom lines. "In the long term, definitely, Airbus and Boeing's market share will be diluted." Against that backdrop, all the usual suspects will be at what has become a must-attend show.

Embraer set up an office in China earlier this year and is staffing the show from there. Cessna has a strong contingent and most other GA manufacturers have a presence, from avionics to engines. The show runs until Sunday.