Commercial Aircraft Corporation of China: Turbulent Times in China & Beyond

Commercial Aircraft Corporation of China: Turbulent Times in China & Beyond
Case Code: BSTR701
Case Length: 12 Pages
Period: 2025
Pub Date: 2025
Teaching Note: Available
 Price: Rs.500
Organization : The Commercial Aircraft Corporation of China
Industry : Aviation
Countries : China
Themes: International Business, Business Continuity Planning, International Business,Growth Strategy
Commercial Aircraft Corporation of China: Turbulent Times in China & Beyond
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses state-owned Chinese aircraft manufacturer The Commercial Aircraft Corporation of China (COMAC) which was making efforts to emerge as a contender in the global commercial aviation market dominated by American aerospace giant The Boeing Company and Airbus SE – a European manufacturer of commercial aircraft, military transport, helicopters, launchers, and satellites. In May 2025, when trade and political tensions escalated between China and the US, COMAC started facing issues in production as the US imposed a temporary export ban on companies providing engine parts to China. COMAC used LEAP–1 engines – manufactured by GE Aerospace – in its jets. In addition to this, it sourced other aviation technologies and flight control systems from several suppliers in the US. Though the US lifted the restrictions in July 2025, supply chain operations at COMAC were disrupted, causing delays in the production of its jets. This led to COMAC reducing its delivery target of C919 jets for 2025 to 25 from its earlier target of 75.

To add to its troubles, COMAC’s plans to fly into international markets were hampered by the delays it faced in obtaining airworthiness certification from the European Union Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA). With the supply chain disruptions faced by COMAC due to geopolitical tensions, how would it be able to emerge as a contender in the global commercial aviation market? Amidst the challenges in obtaining airworthiness certification from the EASA and the FAA, would it be able to expand globally?

Issues

The case is structured to achieve the following teaching objectives:

  • Understand the challenges faced by companies in expanding internationally.
  • Analyze how a company can disrupt a competitive market and emerge as a contender globally.
  • Formulate strategies for a company to grow in a lucrative domestic market segment.

Contents

Keywords

COMAC; GE Aerospace; Geopolitical tensions; International expansion; Global commercial aviation market; Duopoly; Maintenance, Repair, and Overhaul; LEAP-1C engines; CFM International; Boeing; Airbus SE; European Union Aviation Safety Agency; Federal Aviation Administration; Civil Aviation Administration of China; C919 jet,China Eastern Airlines; China Southern Airlines; Air China; the US Department of Commerce; Honeywell International Inc.; Parker-Hannifin Corp; Mitsubishi Heavy Industries; McDonnell-Douglas; Aero Engine Corporation of China; Shanghai Aircraft Design and Research Institute

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