China introduced its first domestically manufactured regional jet Friday as the nation attempts to enter the crowded regional jet manufacturing marketplace to meet its jet needs, Reuters reported.

The ARJ21-700, or Advanced Regional Jet of the 21st Century, is being built by state-operated manufacturer AVIC I, which also makes fighter planes and bombers, Reuters reported.

Analyst C. Leonard Bauer, formerly of Prudential, told BloggingStocks on Friday that while China's introduction of the ARJ21-700 is a historic moment for Chinese aerospace development and engineering, the company and airplane manufacturing process in the world's most populous country still faces formidable hurdles.

Chief among these will be strong competition, Bauer said. Canada-based Bombardier and Brazil-based Embraer (NYSE: ERJ) are two manufacturers in the sector with demonstrated proficiency, he said, and it's unlikely that AVIC I will be able to match flight performance for at least five to seven years.

"More than likely, China's aviation officials will concentrate solely on China's market, which is what they should do, as there's not likely to be many foreign orders for the ARJ21-700 for at least a half decade," Bauer said. "Aviation is a big 'known-commodity' business, which means it will be some time before the ARJ21-700 builds a foreign order book."

Continue reading ARJ21-700 marks China's entry into regional jet market

ARJ21-700 marks China's entry into regional jet market originally appeared on BloggingStocks on Fri, 21 Dec 2007 17:40:00 EST. Please see our terms for use of feeds.