The global commercial aircraft industry is experiencing noteworthy transformations as COMAC, China's state-owned aircraft manufacturer, sets its sight on international markets for its C919 model. Despite the impressive order backlog from domestic airlines, COMAC is initiating negotiations abroad, targeting airlines facing aging fleets and delivery delays from established manufacturers.
COMAC has amassed substantial orders for the C919 from its three principal domestic carriers, which include a combined total of 306 orders. Yet, as of December, only 14 jets had been delivered, signaling production challenges at its Shanghai assembly line. While it deals with production efficiency, COMAC is actively seeking growth opportunities overseas.
According to reports from Bloomberg, representatives of COMAC have entered discussions with various potential customers located across Asia and beyond, eyeing airlines situated in countries like Indonesia, Cambodia, and Kazakhstan.
One of the most promising leads appears to be with Garuda Indonesia, the national airline which is currently struggling financially. The airline operates an aging fleet primarily composed of 43 Boeing 737-800s, with their average age nearing 13 years. Garuda is concurrently negotiating with larger players such as Boeing and Airbus, due to the lengthy waiting list for their 737 MAX and A320neo models, rendering the C919 as an attractive alternative.
Adding to its international prospects, COMAC's only existing foreign customer, TransNusa, is already operating several C909s (previously referred to as ARJ21s). This initial foothold sets the stage for more significant expansion if COMAC successfully addresses the certification concerns surrounding its aircraft.
COMAC's outreach extends to Angkor Air of Cambodia, which currently operates just three outdated Airbus jets. Similarly, SCAT Airlines from Kazakhstan has shown potential interest after discussions with COMAC.
Interestingly, the pursuit of international orders does not solely reside within Asia. Reports suggest hints of interest from Total Linhas Aereas, a small Brazilian airline, which is exploring the procurement of four C919s—a noteworthy aspiration considering the aircraft's current status lacking approval for operations within Brazil.
Additional Asian carriers are also contemplating their options related to the C919. Vietnam Airlines indicated openness, contingent upon COMAC securing its type certification from authorities outside of China. Meanwhile, VietJet recently arranged for two C909s with Chengdu Airlines, planning to initiate wet lease operations come January 2025.
Malaysia's low-cost airline, AirAsia, has added to the buzz by engaging with multiple manufacturers, including Boeing, Airbus, Embraer, and COMAC, demonstrating the competitive nature of the market.
This strategic push by COMAC to penetrate the international market reflects its determination to not only bolster its production commitments domestically but also challenge established brands globally. While the C919 has yet to complete its certification process outside China, the manufacturer's aggressive marketing aligns with both regional needs and potential shortages created by existing supply chains.
By positioning itself as a viable alternative to major Western competitors, COMAC is undoubtedly reshaping the dynamics of the commercial aircraft sector. If it manages to convert these negotiations to confirmed orders, the C919 could soon represent a significant player on the global stage, reinforcing the narrative of changing market balance and the rise of new contenders within the aviation industry.
