Alcoa, Comac to Study Aluminum Designs for C919 Jet

Oct. 29 (Bloomberg) -- Alcoa Inc., the largest U.S. aluminum producer, said it will study aluminum structural concepts, designs and alloys with the Commercial Aircraft Corp. of China for the planemaker’s new C919 jet. The shares rose the most in more than six months. The technology cooperation agreement between the two companies is intended to help produce “a globally competitive, high-performance, economical commercial airliner,” New York- based Alcoa said in a statement today. The plane is expected to make its first flight in 2014 and enter service in 2016, the statement said. Government-controlled Comac is trying to crack the duopoly Boeing Co. and Airbus SAS hold in the $70-billion-a-year commercial jet market. China’s carriers will probably need 3,710 new planes over 20 years, of which 70 percent will be single- aisle aircraft, Chicago-based Boeing has estimated. Comac unveiled a model of the C919 at the Hong Kong air show last month and is marketing it as a cheaper alternative that uses as much as 15 percent less fuel than Boeing 737 and Airbus A320 airplanes, which dominate the single-aisle plane market. ‘Great Potential’ “The opportunity to participate in the Chinese aerospace market, which has great potential for growth in commercial airliners and air travel over time, is an exciting one,” Tony Rizzuto, a New York-based analyst with Dahlman Rose & Co. who rates the shares “neutral,” said in an interview today. “The partnership will have to be managed to protect intellectual property and proprietary technology.” Alcoa rose $1.07, or 9 percent, to $13 at 4:15 p.m. in New York Stock Exchange composite trading, the largest increase since April 9. The shares have gained 15 percent this year. The 190-seat C919 will be assembled in Shanghai with parts sourced globally, according to the statement. It will be the largest passenger jet to be produced in China, the companies said. “Our goal is to design an efficient, high-performance structure that will compete in the global aerospace market,” Wu Guanghui, chief designer of the C919 program and vice president of Comac, said in the statement. “It is imperative that we look at design alternatives and collaborate with innovative materials technology leaders like Alcoa.” To contact the reporter on this story: Edmond Lococo in Boston at elococo@bloomberg.net. Last Updated: October 29, 2009 16:21 EDT