Latest news with #COMACC919
Irish Post
06-05-2025
- Business
- Irish Post
O'Leary warns US tariffs could derail $30 billion Boeing-Ryanair deal
Maybe... China (Photo by Max Mumby/Indigo/Getty Images) RYANAIR boss Michael O'Leary recently sent a letter to top US lawmakers warning: 'If the US government proceeds with its ill-judged plan to impose tariffs, and if these tariffs materially affect the price of Boeing aircraft exports to Europe, then we would certainly reassess both our current Boeing orders, and the possibility of placing those orders elsewhere.' Ryanair has placed an order for 330 aircraft from Boeing, valued at over $30 billion, with deliveries scheduled through 2034. This development could significantly escalate the transatlantic threats over tariffs imposed by President Trump. Ryanair, Europe's largest low-cost carrier, is one of Boeing's most important customers. At present, Boeing's sole competitor in the large aircraft carrier market is Airbus. However, Airbus have announced that their production capacity is fully booked through the next decade. O'Leary warned that he would cancel orders from Boeing and instead look towards state-owned Commercial Aircraft Corporation of China (COMAC). This would put a hurdle in Trump's plan. The President hopes to bring manufacturing back to American soil while isolating China from western markets. However, industry insiders are viewing O'Leary's threat with some scepticism. Aircraft order cancellations are extremely rare, as airlines typically spend years on waiting lists and are reluctant to risk being moved to the back of the line. If Ryanair were to proceed with buying from COMAC, they would be the first western airline to do so. COMAC currently does not have permission to fly in Europe, although it has sent an application for its C919 planes to the aviation regulator. Additionally, the COMAC C919 can seat only between 150-190 while the Boeing MAX 10 can seat 230. It would be commercially unviable to cancel scheduled orders for planes that are smaller and don't currently have permission to fly in Ryanair's main market. Historically, the airline industry has enjoyed duty-free status, as they have supply chains that cross multiple countries and continents. Trump's threats could upend this and dramatically increase the cost of flying, which will ultimately be paid for by the consumer. Many in the industry are holding out hope that Trump will blink first, and either lower the tariffs or create a carve-out for them, as he has done for the auto and tech industry. O'Leary has a long-standing history with Boeing, previously calling their 737 "a game changer" for his company (CNBC, 2019). The aircraft is much more fuel efficient for short-haul flights, compared with the 777X model, and allows for quicker boarding and turnaround times - key advantages for Europe's busiest airline. See More: Boeing, Michael O'Leary, Ryanair, Tariffs
Yahoo
26-04-2025
- Business
- Yahoo
Safran says China to exempt jet engines and parts from tariffs
By Tim Hepher, Brenda Goh PARIS (Reuters) -China has decided to grant exemptions from import tariffs for some aircraft parts, including jet engines, the head of French engine maker Safran said on Friday. "We learned last night that China has taken the decision not to tax engines or landing gear or nacelles (engine housings), in other words a certain number of aerospace equipment parts," CEO Olivier Andries told reporters on a first-quarter results call. "It demonstrates that the situation is very fluid," he said, adding that finished aircraft were not included in the decision. China is considering exempting some U.S. imports from its 125% tariffs and is asking businesses to identify goods that could be eligible, business groups in China said on Friday. The possible dispensation is the latest sign the world's two largest economies are prepared to try to calm a trade war that has seen Boeing repatriate some undelivered jets and threaten to sell jets locked out of China to other airlines. Together with GE Aerospace, Safran co-produces LEAP jet engines for best-selling Boeing and Airbus narrow-body jets, as well as China's COMAC C919 jetliner. Factories are based in France and the United States and GE and Safran are responsible for different parts of the engine, which is the sole powerplant available on the Boeing 737 MAX and competes with U.S.-based Pratt & Whitney on the Airbus A320neo. EXEMPTION LIST Andries did not say whether Safran had received the positive signal on tariffs directly from Chinese authorities. CFM has been present in the country since 1985 and its customers include state airlines and national aerospace champion COMAC. A list of 131 categories of products eligible for exemptions was circulating widely on social media and among businesses and trade groups in China on Friday. Reuters could not verify the list, whose items ranged from vaccines and chemicals to jet engines. A waiver for engines and parts would lift some uncertainty over the availability of spares and services needed for China's carriers to keep their fleets in the air. Parts for repairs are already in high demand due to shortages of new planes driven by snags in the supply chain. One Western industry official said Chinese airlines were understood to be requesting carve-outs or exemptions for some imports. Chinese officials could not be reached for comment. European planemaker Airbus also relies on supplies of CFM engines and competing models from Pratt & Whitney for the assembly of some of its jets in the port city of Tianjin. Airbus was not immediately available for comment. Finally, China's own domestic passenger jet, the C919, relies on CFM engines and other Western parts though China has embarked on efforts to develop a home-grown alternative engine. Suppliers of significant parts for China's first fully developed passenger jet include RTX unit Collins Aerospace, Honeywell and half a dozen other mainly U.S. suppliers. None of the companies responded to requests for comments. Sign in to access your portfolio
Free Malaysia Today
25-04-2025
- Business
- Free Malaysia Today
Safran says China to exempt jet engines and parts from tariffs
Together with GE Aerospace, Safran has co-produced LEAP jet engines for Boeing, Airbus and China's COMAC C919 jetliner. (EPA Images pic) PARIS : China has decided to grant exemptions from import tariffs for some aircraft parts, including jet engines, the head of French engine maker Safran said today. 'We learned last night that China has taken the decision not to tax engines or landing gear or nacelles (engine housings), in other words a certain number of aerospace equipment parts,' CEO Olivier Andries told reporters on a first-quarter results call. 'It demonstrates that the situation is very fluid,' he said, adding that finished aircraft were not included in the decision. China is considering exempting some US imports from its 125% tariffs and is asking businesses to identify goods that could be eligible, business groups in China said today. The possible dispensation is the latest sign that the world's two largest economies are prepared to try to calm a trade war that has seen Boeing repatriate some undelivered jets and threaten to sell jets locked out of China to other airlines. Together with GE Aerospace, Safran co-produces LEAP jet engines for the best-selling Boeing and Airbus narrow-body jets as well as China's COMAC C919 jetliner. Factories are based in France and the US and GE and Safran are responsible for different parts of the engine, which is the sole powerplant available on the Boeing 737 MAX and competes with US-based Pratt & Whitney on the Airbus A320neo. A list of 131 categories of products eligible for exemptions was circulating widely on social media and among businesses and trade groups in China today. Reuters could not verify the list, whose items ranged from vaccines and chemicals to jet engines.
Reuters
25-04-2025
- Business
- Reuters
Safran says China grants tariff exemptions for jet engines and parts
PARIS, April 25 (Reuters) - China has granted exemptions from import tariffs for some aircraft parts including engines, the head of French engine maker Safran ( opens new tab said on Friday. "We learned last night that China has taken the decision not to tax engines or landing gear or nacelles - in other words a certain number of aerospace equipment parts," CEO Olivier Andries told reporters on first-quarter results call. "It demonstrates that the situation is very fluid." Together with GE Aerospace (GE.N), opens new tab, Safran co-produces LEAP jet engines for the most-used Boeing (BA.N), opens new tab and Airbus ( opens new tab narrow-body jets as well as China's COMAC C919 jetliner. The French CEO's comments follow signs that China is considering offering exemptions from its 125% tariffs to some U.S. imports. China's Ministry of Commerce is collecting lists of items that could granted exemptions from tariffs and is asking companies to submit their own requests, Reuters reported earlier, citing an anonymous source.
