Market Overview

Russia-China Aviation Alliance Challenges General Electric, Rolls Royce And Boeing

Share:
Russia-China Aviation Alliance Challenges General Electric, Rolls Royce And Boeing

RT/TV-Novosti reported on Russia’s new developing aircraft engine project with China and its continued effort to produce a Russian-made competitor to the popular Boeing Co (NYSE: BA) 787.

"We’ve informed the Chinese side about the beginning of work on Russia's heavy-lift aircraft engine in the thrust segment of up to 35 tons. The decision was made by the Russian president in May, with all the necessary funds allocated," said Russian Deputy Prime Minister Dmitry Rogozin.

First Of Its Kind

If successful, the jet engine initiative will be the first of its kind in both China and Russia. “Neither the Soviet Union nor Russia have ever developed such a powerful engine” said Rogozin.

Related Link: Bear Thesis In Boeing "Continues To Look Overstated"

Beforehand, Soviets and the Chinese used large passenger engines from General Electric Company (NYSE: GE) and Rolls-Royce Holding PLC (ADR) (OTC: RYCEY). “All development issues of a new passenger jet will now be solved, because you can't have a plane without an engine” stated Rogozin.

New development of the high-powered passenger engine will pave the way for Russia’s new 250–280 seat aircraft at an estimated price between $200-260 million expected to go on sale in 2025 according to TV-Novosti.

Posted-In: Boeing 787News Travel Global Tech Media Trading Ideas General Best of Benzinga

 

Related Articles (BA + GE)

View Comments and Join the Discussion!

Benzinga's Top Initiations

Marathon Oil Upgraded At Morgan Stanley To Overweight Amid 'Fastest Improving Unconventional Plays In The US'