US, China Move To Accept Aircraft Certification

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Key Takeaways:

  • The FAA and Chinese regulators signed an implementation agreement for the U.S.-China Bilateral Aviation Safety Agreement (BASA) after a 12-year delay, facilitating mutual acceptance of certified aviation parts and aircraft.
  • The agreement is expected to benefit both U.S. and Chinese aerospace companies by opening markets and streamlining certification processes.
  • For China, it could lend credibility to aircraft like the COMAC C919, potentially allowing certification for use by U.S. carriers.
  • For the U.S., particularly Boeing, it helps ensure continued access to the crucial Chinese market, which was the largest buyer of transport category jets in 2015.
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The FAA and Chinese regulators signed an implementation agreement for the U.S.-China Bilateral Aviation Safety Agreement (BASA) late last week. Although the two countries signed BASA in 2005, generally agreeing to facilitate mutual acceptance of parts and aircraft certified by the other, it has taken 12 years for the countries to get to agreement on a concrete implementation plan. The U.S. has similar agreements with Canada and Europe to facilitate mutual aircraft certification acceptance. President Trump is scheduled to travel to China on a trade mission in early November, which is expected to include representatives from Boeing.

U.S. and Chinese aerospace companies both hope to gain from the agreement. Although the Chinese-made C919 lacks the performance to compete with the Boeing 737MAX and Airbus A320neo, its narrow-body peers, other than for the business of state-subsidized Chinese carriers, COMAC, maker of the C919, has bold aspirations to compete with the big two. The ability to certify the aircraft for use by U.S. air carriers would lend significant credibility to the business. Boeing, conversely, wants to make sure they’re not shut out of the Chinese market, which was the biggest buyer of transport category jets in 2015. Richard Aboulafia, a leading commercial aviation market analyst, sums up the accord by saying, “This is diplomatically important. It shows that the U.S. takes China’s aviation industry seriously and that it regards their civil-aviation officials as reliable partners.”

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