Commercial Aviation
US Resumes Jet Engine Exports to China’s COMAC Amid Trade Shift
The U.S. reinstated GE’s export licenses for jet engines to COMAC, enabling China’s aviation goals while highlighting supply chain interdependencies and trade dynamics.
U.S. Resumes Jet Engine Shipments to China’s COMAC: A Strategic Trade Shift
The United States’ decision to reinstate export licenses for GE Aerospace to supply jet engines to China’s Commercial Aircraft Corporation (COMAC) marks a significant shift in the ongoing trade dynamics between the two global superpowers. This move, which allows the resumption of LEAP-1C and CF34 engine shipments, arrives amid a broader de-escalation in U.S.-China trade tensions. It also reflects the intricate interdependence of global aerospace supply chains, where geopolitical strategies intersect with commercial imperatives.
For COMAC, the Chinese state-owned aircraft manufacturer, the resumption of engine shipments is critical to maintaining production timelines for its flagship aircraft, the C919 and the rebranded C909 regional jet. These aircraft are central to China’s long-term ambition to challenge the Boeing–Airbus duopoly and achieve technological sovereignty in the aerospace sector. However, the reliance on Western components, especially Propulsion systems, reveals the fragile underpinnings of this ambition.
This article explores the broader implications of this export license reinstatement, the history and strategic goals of COMAC, and the geopolitical and economic factors shaping the future of aerospace trade between the U.S. and China.
COMAC’s Development and Strategic Dependencies
The Rise of COMAC and the C919 Program
Founded in 2008, COMAC was established to spearhead China’s ambitions in the global aerospace sector. Its most prominent project, the C919 single-aisle jet, was designed to compete directly with the Boeing 737 and Airbus A320 families. The aircraft first flew in 2017 and entered commercial service in 2023 with China Eastern Airlines. Despite being manufactured in China, over 80% of the C919’s components are sourced from Western suppliers, including engines, Avionics, and flight control systems.
At the heart of the C919 is the LEAP-1C engine, developed by CFM International, a joint venture between GE Aerospace and France’s Safran. This engine not only provides thrust but also includes a fully integrated propulsion system, enhancing efficiency and reducing maintenance complexity. The CF34-10A engine, also from GE, powers COMAC’s regional jet, the C909, formerly known as the ARJ21.
COMAC’s dependency on these Western technologies has been both a strength and a vulnerability. While it allows the company to produce aircraft that meet international performance standards, it also exposes it to Supply Chain disruptions driven by geopolitical tensions.
“Despite being marketed as a Chinese aircraft, the C919 depends heavily on Western technology, highlighting the complexity of achieving true aerospace independence.”, Aerospace Analyst Commentary
Production Scaling and Market Focus
In 2025, COMAC is targeting 30 Deliveries of the C919, a 130% increase from the previous year. The company aims to scale production to 150 units annually within five years. Major Chinese airlines, China Eastern, China Southern, and Air China, have collectively placed over 300 orders, signaling strong domestic demand and state support for the program.
However, the C919 still lacks certification from the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), limiting its operations to Chinese and allied airspaces. This constraint significantly hampers COMAC’s ability to compete globally, even as it positions the aircraft at a premium price point of around $108 million per unit, higher than some Boeing 737 models.
Without global certification, COMAC’s strategy appears focused on dominating the Chinese domestic market, which is projected to require over 6,000 new narrowbody aircraft by 2042. Capturing even 25% of this demand would solidify COMAC’s financial footing and justify further investment in indigenous technologies.
Trade Tensions, Rare Earths, and Strategic Leverage
Rare Earths and the Engine Suspension
The suspension of GE’s export licenses in early 2025 was part of a broader escalation in the U.S.-China trade war. China had imposed restrictions on the export of seven rare earth elements essential for high-tech manufacturing, including aerospace components. These restrictions were a response to U.S. tariffs and were justified by China’s Ministry of Commerce on national security grounds.
Rare earths such as samarium, gadolinium, and dysprosium are critical for manufacturing magnets used in jet engines, guidance systems, and other defense-related technologies. The U.S. responded by tightening export controls on aerospace components, including engines destined for COMAC aircraft. This tit-for-tat dynamic threatened to derail production timelines and jeopardize COMAC’s backlog of over 1,000 aircraft orders.
By mid-2025, both countries began easing restrictions. China suspended its rare earth export limits for 90 days, while the U.S. reinstated licenses for GE and, reportedly, other aerospace firms like Honeywell. These moves suggest a willingness to decouple strategic competition from critical commercial supply chains, at least temporarily.
Strategic Exposure of Western Suppliers
GE Aerospace’s resumption of engine shipments is not just a win for COMAC; it also preserves a significant revenue stream for GE. With each LEAP-1C engine valued at roughly $12–$16 million, fulfilling the 2025 delivery schedule could generate $3.5–$4.8 billion. GE reported $9.9 billion in Q1 2025 revenue, with commercial engine services playing a key role.
Other Western suppliers are also deeply embedded in COMAC’s aircraft. Honeywell provides auxiliary power units, avionics, and flight control systems for the C919. Collins Aerospace, a subsidiary of RTX, supplies additional avionics and cockpit systems. While these companies have not confirmed the status of their licenses, their strategic exposure to COMAC remains high.
The resumption of shipments offers short-term stability but underscores the long-term risks of over-reliance on politically sensitive markets. Analysts warn that any future deterioration in trade relations could again disrupt supply chains, especially if rare earth agreements are not renewed or if new sanctions are imposed.
“The aerospace sector’s future hinges on diversified supply chains and diplomatic engagement to ensure operational continuity in an increasingly multipolar world.”, Trade Policy Expert
Geopolitical and Market Implications
While the current détente facilitates COMAC’s production goals, it does not resolve the fundamental challenges of certification and technological independence. The CJ-1000A, China’s domestically developed alternative to the LEAP-1C, remains years away from certification. Until then, COMAC must rely on Western propulsion to meet its delivery targets.
From a geopolitical perspective, the U.S. retains leverage through export controls and its dominance in aerospace technology. China, in turn, controls over 70% of global rare earth production, giving it a potent counterbalance. This mutual dependence creates a fragile equilibrium that could be disrupted by shifts in domestic policy, global alliances, or market conditions.
The broader aerospace market is also evolving. Airbus continues to expand its footprint in China with a local A320neo assembly line, while Boeing is gradually re-entering the market following recent trade resolutions. COMAC’s success will depend on its ability to scale production, secure certification, and eventually reduce its dependency on Western technology.
Conclusion: Strategic Stability or Temporary Reprieve?
The reinstatement of GE’s export licenses to COMAC represents a tactical easing of U.S.-China trade tensions, preserving crucial aerospace supply chains and enabling COMAC to pursue its near-term production goals. However, this move does not fundamentally alter the strategic landscape. COMAC remains heavily reliant on Western technology, while the U.S. continues to wield export controls as a policy tool.
Looking ahead, the sustainability of this truce will depend on continued diplomatic engagement and the successful negotiation of long-term trade frameworks. For COMAC, the path to global competitiveness runs through certification, technological autonomy, and resilient supply chains. For Western suppliers, strategic diversification and risk management will be essential in navigating an increasingly complex global market.
FAQ
What engines does GE supply to COMAC?
GE Aerospace supplies the LEAP-1C engine for the C919 and the CF34-10A engine for the C909 regional jet.
Why were the engine shipments suspended?
The U.S. suspended export licenses in response to China’s rare earth export restrictions, part of broader trade tensions between the two countries.
Has the issue been fully resolved?
Licenses have been reinstated for now, but the agreement is fragile and depends on ongoing diplomatic negotiations and trade stability.
Is COMAC a serious competitor to Airbus and Boeing?
COMAC has strong domestic support and a growing order book, but lacks international certification and technological independence, limiting its global competitiveness.
What is the significance of the C919’s certification status?
Without FAA or EASA certification, the C919 cannot operate in most international markets, restricting its sales to China and a few allied countries.
Sources: Reuters, Financial Times, Reuters, CNBC
Photo Credit: Bloomberg
Aircraft Orders & Deliveries
Avolon Acquires 11 Airbus A321neo Jets from Frontier Airlines
Avolon acquires 11 A321neo delivery slots from Frontier Airlines, valued at US$1.425B, as the carrier reduces capital commitments after a 2025 net loss.
Aircraft lessor Avolon Holdings Limited will acquire 11 Airbus A321neo aircraft originally ordered by Frontier Airlines, absorbing near-term delivery slots scheduled between November 2026 and June 2027.
The transaction was unanimously approved by the board of directors of Avolon parent company Bohai Leasing Co Ltd on June 30, 2026. The agreement allows the Dublin-based lessor to expand its narrowbody portfolio amid ongoing global supply chain constraints. For Frontier Airlines, the transfer reduces capital commitments following a financially challenging 2025 in which the United States-based ultra-low-cost carrier reported a net loss of US$137 million.
Transaction details and delivery timeline
According to a regulatory filing submitted to the Shenzhen Stock Exchange (SZSE), the 11 aircraft hold a combined list value of US$1.425 billion based on 2018 Airbus SE catalogue prices. The final purchase price remains confidential under the terms of the agreement.
The aircraft are scheduled to join the Avolon fleet between November 2026 and June 2027. These airframes are drawn from a November 14, 2021, order placed by Frontier Airlines for 91 Airbus A321neo jets.
Fleet strategy and market dynamics
The agreement highlights shifting fleet strategies among operators and lessors. Frontier Group Holdings, the parent company of Frontier Airlines, generated US$3.724 billion in revenue during 2025 but ultimately posted a US$137 million net loss. Offloading these near-term delivery slots provides the airline with a mechanism to adjust its capacity growth and financial obligations.
Avolon gains access to highly sought-after narrowbody aircraft. Original equipment manufacturer (OEM) delivery delays have constrained the supply of new aircraft, driving intense demand in the leasing market for fuel-efficient models like the Airbus A321neo.
AirPro News analysis
We view this transaction as a mutually beneficial realignment of assets driven by current macroeconomic pressures in the aviation sector. Frontier Airlines secures immediate relief from the capital expenditure required to induct 11 new aircraft over an eight-month period, which aligns with the carrier’s need to stabilize its balance sheet after its 2025 losses. Avolon secures premium, near-term delivery slots that are virtually impossible to obtain directly from Airbus at this stage. Given the persistent shortage of narrowbody lift globally, Avolon is well-positioned to place these aircraft with operators eager for capacity.
Sources: Shenzhen Stock Exchange
Photo Credit: Airbus
Route Development
FAA Announces $1.776 Billion Airport Infrastructure Grants
FAA and DOT award $1.776B in airport grants across 46 states for runway, taxiway, and safety upgrades.
On July 2, 2026, the Federal Aviation Administration (FAA) and the U.S. Department of Transportation (DOT) announced $1.776 billion in infrastructure grants distributed across 46 states to fund runway rehabilitations, taxiway construction, and safety upgrades.
The specific funding amount was selected to symbolically align with the United States Semiquincentennial, marking America’s 250th anniversary. According to an FAA press release, the investments are designed to modernize the travel experience and ensure the national airspace system is prepared for future demand.
“What better way to celebrate America than investing in its future. We’re ushering in the Golden Age of Transportation and rebuilding our airport infrastructure is critical to making that vision a reality. Under President Trump’s leadership, we are building an aviation system worthy of our country’s incredible history,” U.S. Transportation Secretary Sean P. Duffy stated in the release.
FAA Administrator Bryan Bedford noted that the agency is prioritizing rapid and efficient grant issuance. Bedford stated the funding “modernizes the travel experience for American families, ensuring our Airports are safe and ready for the future.”
Major airport allocations across the United States
The grant program directs substantial capital to several major hubs for pavement and lighting projects. Denver International Airport (DEN) received the largest single allocation highlighted in the announcement, securing $88.8 million for pavement projects. In the Pacific Northwest, Boise Air Terminal/Gowen Field (BOI) was awarded $74 million to rehabilitate its runway, expand the apron, and upgrade visual guidance lights.
Other significant awards include $62.4 million for Baltimore/Washington International Thurgood Marshall Airport (BWI) to rehabilitate its runway and associated lighting systems, and $62.2 million for Houston William P. Hobby Airport (HOU) to support runway construction.
Additional funding targets infrastructure at coastal and tourist hubs. John F. Kennedy International Airport (JFK) received $47.6 million for taxiway construction and the reconstruction of an aircraft rescue and firefighting building. Orlando International Airport (MCO) secured $36 million for terminal, taxiway, and lighting rehabilitation, while Oakland International Airport (OAK) was granted $28.1 million for taxiway rehabilitation.
Broader modernization initiatives
The July 2, 2026, grant announcement follows a series of recent infrastructure and regulatory actions by the DOT and FAA. Secretary Duffy and Administrator Bedford have prioritized public visibility into these upgrades. In May 2026, the agencies launched the “Modern Skies” website, a platform designed to provide transparency on more than 10,000 air traffic control modernization projects across the national airspace system.
The infrastructure funding also ties into the DOT’s broader commemorative efforts. In March 2026, Secretary Duffy introduced the “Freedom Moves You” campaign, an initiative bringing historical imagery to major transportation hubs, including JFK, in conjunction with the America 250th celebrations.
On the regulatory front, the FAA recently advanced new operational frameworks. On June 30, 2026, the agency proposed rules to establish noise-based certification standards for civil supersonic flight over the United States, aiming to facilitate the operation of next-generation aircraft without producing a sonic boom.
AirPro News analysis
We view the symbolic $1.776 billion figure as a clear messaging strategy from the DOT, linking routine but necessary infrastructure spending to the broader national narrative of the Semiquincentennial. While the dollar amount is stylized for the occasion, the underlying projects address critical deferred maintenance at major hubs like DEN and JFK. The focus on runway and taxiway rehabilitation reflects an ongoing necessity to maintain safety margins and operational efficiency as passenger volumes continue to test the limits of existing airport infrastructure.
Sources: Source Name, Source Name, Source Name, Source Name
Photo Credit: Stock Image
Commercial Aviation
Radia and Blue Water Shipping Partner for WindRunner Logistics
Radia and Blue Water Shipping announced a joint collaboration to integrate the WindRunner aircraft into global multimodal supply chains.
Radia, the aerospace company developing the WindRunner oversized cargo aircraft, and global logistics provider Blue Water Shipping announced a strategic joint marketing collaboration on June 24, 2026, to integrate the planned aircraft into global multimodal supply chains.
The partnership, detailed in a joint press release, aims to combine the volumetric capacity of the WindRunner with Blue Water Shipping’s expertise in project cargo, customs, and port operations. The companies intend to enable direct delivery of oversized freight closer to final destinations, reducing the need for disassembly and shortening overall project timelines across the energy, aerospace, and defense sectors.
Targeting complex global logistics
The collaboration targets industries that frequently face infrastructure constraints when moving massive components. Initial focus areas for the joint marketing effort include energy infrastructure, humanitarian aid and disaster relief, aerospace logistics, and military transportation. By leveraging the WindRunner aircraft, the companies plan to bypass traditional logistical bottlenecks that often require complex overland routes or extensive component breakdown.
Radia Founder and Chief Executive Officer Mark Lundstrom stated in the press release that many supported industries are constrained by the inability to efficiently move oversized cargo where and when it is needed.
“By combining WindRunner’s transformational airlift capabilities with Blue Water Shipping’s global logistics expertise, we believe we can help create more flexible and resilient transportation solutions for customers operating in some of the world’s most challenging environments,” Lundstrom said.
Expanding the WindRunner operational network
Blue Water Shipping (BWS), headquartered in Esbjerg, Denmark, brings established capabilities in freight forwarding and project logistics to the partnership. The company will work with Radia, based in Boulder, Colorado, to develop new logistics models that integrate the WindRunner into existing multimodal transportation networks.
Rasmus Svane, Head of Global Product Development Wind at BWS, noted that the collaboration offers an opportunity to rethink oversized cargo transport.
“Blue Water Shipping has extensive experience delivering complex logistics solutions across industries that depend on precision, reliability, and flexibility,” Svane said. “Our collaboration with Radia represents an exciting opportunity to explore new logistics models for oversized cargo and help customers rethink what is possible when combining multimodal transportation solutions.”
The agreement with BWS follows a series of strategic moves by Radia to build a global logistics and industrial network ahead of the WindRunner’s deployment. On November 17, 2025, Radia signed a Memorandum of Understanding with United Arab Emirates (UAE)-based Maximus Air, a Cargo-Aircraft specializing in heavy-lift freight. More recently, on June 17, 2026, Radia renewed an agreement with the Italian Ministry of Enterprises and Made in Italy (MIMIT) to reinforce the program’s European industrial base.
The company has also expanded its defense logistics focus, appointing retired United States Air-Forces (USAF) Major General Kenneth “Thad” Bibb Jr. as Vice President of Business Development for Defense in May 2025 to guide the aircraft’s role in supporting military operations.
AirPro News analysis
We view Radia’s partnership with Blue Water Shipping as a necessary step in transitioning the WindRunner from an aerospace engineering project into a commercially viable logistics platform. Building an aircraft capable of carrying unprecedented volumes is only half the challenge. The other half is integrating that aircraft into existing global Supply-Chain. By aligning with established freight forwarders like Blue Water Shipping and operators like Maximus Air, Radia is securing the ground-level infrastructure, customs expertise, and multimodal connections required to deliver end-to-end service for oversized cargo customers.
Sources: Radia
Photo Credit: Radia
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