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Here’s one bright spot in the unfriendly skies of the travel industry

Last Friday, China successfully completed the first test flight of its domestically produced jet, the ARJ21-700. After flying for an hour, the 90-seat jet landed safely at an airport in Shanghai.

ARJ21, by the way, is an acronym for “Advanced Regional Jet for the 21st Century.” Regional jets are smaller than the large commercial airplanes and only have a range of around 2,000 miles.

By starting with smaller regional jets, China is avoiding head-to-head competition with Boeing and Airbus. But that doesn’t mean China isn’t competing!

China has already sold 208 jets, including five firm orders from General Electric’s aircraft leasing arm, GE Commercial Aviation Services.

And it is directly competing against Canada’s Bombardier (Toronto: BBD.B) and Brazil’s Empresa Brasileira de Aeronautica (NYSE:ERJ).

Money and Markets, FL

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