HNA Aviation buys 100 planes from Comac, giving China’s home-grown aircraft builder a leg up in its bid to catch up with Airbus and Boeing

HNA signed a contract for 60 of Comac’s C919 single-aisle passenger jet and 40 of the ARJ21 regional jetliners yesterday in Shanghai
By the end of last year, Comac received orders for 1,035 C919 airliners, its flagship product to rival Boeing’s 737 and Airbus’ A320

Aviation

Zhang Shidongin Shanghai

Published: 3:30pm, 28 Apr 2023

Why you can trust SCMP

HNA Aviation Group, which operates China’s fourth-largest aircraft fleet, has ordered 100 planes from the Commercial Aircraft Corporation of China (Comac), giving the state-run manufacturer a leg up in its race to catch up with Airbus and Boeing in the global aviation industry.

HNA signed a contract for 60 of Comac’s C919 single-aisle passenger jet and 40 of the ARJ21 regional jetliners yesterday in Shanghai, according to a statement that did not divulge financial details.

The procurement is a boost for Comac in helping China to fulfil President Xi Jinping’s aspiration to challenge the dominance of Boeing and Airbus in the home or even the global market. China is aiming for a 10-per cent share of domestic aviation by 2035. By the end of last year, Comac received orders for 1,035 C919 airliners, its flagship product to rival Boeing’s 737 and Airbus’ A320.

“The two parties will take advantage of this opportunity to deepen cooperation and further integrate the civil aviation transport industry with commercial airline manufacturing to build a strong nation in terms of civil aviation and manufacturing,” according to the statement.

An ARJ21 jetliner carrying the livery of One Two Three Airlines (OTT Airlines) at the Hongqiao International Airport in Shanghai on December 28, 2020. Photo: Xinhua.

Comac can break the duopoly of Boeing and Airbus in the home market because of the size of China’s aviation industry and strong policy support, according to Berlin-based think tank Mercator Institute for China Studies.

Comac, which was founded in 2008 with the state-owned asset regulator and Aviation Industry Corporation of China being its major shareholders, anticipates having an annual manufacturing capacity of 150 C919 aircraft within five years.

Its ARJ 21 regional jet can fly 95 passengers and has a flight range between 2,225 kilometres and 3,700 kilometres.

As the trade war heats up, Beijing looks to make its aerospace less reliant on other countries

Hainan Airlines, the Shanghai-listed unit of HNA Aviation, had a fleet of 342 planes, including 260 Boeing airliners and 64 Airbus jets by the end of 2022, according to its annual report.

HNA operates several carriers, the largest of which is Hainan Airlines. It also operates regional carriers like Tianjin Airlines and Fuzhou Airlines. It is the latest customer for the C919, which can carry between 156 to 168 passengers in typical configurations, with an operational range of 3,000 nautical miles (5,555 kilometres).

China Eastern Airlines bought four C919s in May 2022 for US$99 million each. The first plane was delivered in December after undergoing 100 hours of test flights. The plane will be put into commercial use after it meets a series of flight requirements such as operational safety and maintenance reliability, according to the Xinhua News Agency.

The C919 made its maiden test flight in 2017 and was certified to fly by the Civil Aviation Administration of China (CAAC) in September last year after 14 years of development. Its major parts such as engines and communication systems are imported from the US or Europe.

China’s aviation industry is on the recovery after the nation dropped all the Covid curbs in November, unleashing pent-up demand for traveling. Data from online travel agency Trip.com shows that searches for air tickets and hotels from the coming May Golden Week holiday that starts on Saturday, have exceeded the pre-pandemic level.