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
Croatia Airlines Takes Delivery of Two Airbus A220-300s
Croatia Airlines receives its 12th and 13th A220-300s, advancing its 15-aircraft fleet renewal and nearing A319 retirement.
Croatia Airlines has taken delivery of two new Airbus A220-300 aircraft, bringing its next-generation fleet to 13 and signaling the imminent retirement of its legacy Airbus A319s.
The state-owned flag carrier announced the double delivery in an October 5, 2026, press release, marking a critical milestone in its 15-aircraft fleet renewal program. The aircraft arrived at Zagreb Airport (ZAG) from the Airbus facility in Mirabel, Canada, over consecutive days.
Double delivery accelerates fleet modernization
The two new Airbus A220-300s departed the Airbus manufacturing facility in Mirabel (YMX) on October 1 and October 2, 2026. According to flight routing details from AvioRadar, both aircraft transited through Copenhagen Airport (CPH) before touching down in Zagreb on October 2 and October 3, respectively.
Continuing the airline’s tradition of naming its aircraft after Croatian cities, the 12th fleet addition (registration 9A-CAW) is named “Karlovac,” while the 13th (registration 9A-CAX) is named “Sisak.” The newly delivered A220-300s are configured with a passenger seat capacity of 149. The carrier’s active A220 fleet now consists of 11 A220-300s and two smaller A220-100s, which seat 127 passengers, according to EX-YU Aviation News.
Phasing out legacy Airbus and turboprop operations
The arrival of the new airframes coincides with the final stages of Croatia Airlines’ transition to a single-type fleet. The airline is currently retiring its older Airbus A319s to make way for the A220s. EX-YU Aviation News reported that the final commercial flights for the A319 are tentatively scheduled for October 11, 2026, with one final rotation from Zagreb to Split, Rome, Split, and back to Zagreb planned for October 23, 2026.
This transition follows the retirement of the carrier’s last Airbus A320 earlier in the year. The final A320, registered as 9A-CTO, was withdrawn from service on January 26, 2026, concluding nearly three decades of operations for the type at the airline.
The fleet modernization program also extends to the carrier’s regional operations. The airline expects to withdraw its remaining De Havilland Canada Dash 8-400 turboprops by March 2027.
Completing the 15-aircraft order
Croatia Airlines is undertaking the largest fleet renewal project in its history, utilizing the Airbus A220 to modernize its operations. Designed specifically for the 100-150 seat market, the A220 provides the carrier with significant improvements in fuel efficiency and noise reduction compared to its previous-generation aircraft.
The airline expects to take delivery of its 14th Airbus A220 by the end of 2026. The 15th and final aircraft is scheduled for delivery in 2027, which will complete the fleet renewal program. According to EX-YU Aviation News, the final two aircraft are expected to be named “Varaždin” and “Vinkovci.”
Photo Credit: Croatia Airlines
Commercial Aviation
Menzies Aviation Expands to Full-Suite Services at KUL
Menzies Aviation adds passenger services at Kuala Lumpur International Airport, becoming a full-suite ground handling provider.
Menzies Aviation has officially expanded its operations at Kuala Lumpur International Airport (KUL) to include passenger services, transitioning the company into a full-suite ground handling provider at Malaysia’s busiest aviation hub.
The October 1, 2026, announcement follows the company’s initial launch of ramp operations at the airport in January 2025. According to a press release issued by Menzies Aviation, the expansion is designed to strengthen the company’s operational footprint in the rapidly growing Southeast Asian aviation market, complementing its existing presence in Indonesia, Thailand, and China-Macau.
Proving flights and regulatory milestones
The transition to full-suite services required live operational demonstrations under regulatory scrutiny. On August 10, 2026, Menzies Aviation managed the passenger and ramp services for a proving flight operated by Ascend Airways Malaysia. The flight utilized a Boeing 737-800 aircraft.
This proving flight was a component of Ascend Airways Malaysia’s certification process with the Civil Aviation Authority of Malaysia (CAAM). The airline secured approval from CAAM in August 2026 to add passenger operations to its Air Operator Certificate (AOC). Ascend Airways Malaysia is expected to commence commercial passenger operations by the end of 2026, supported by Menzies Aviation’s ground handling services at KUL.
To support the new passenger services offering, Menzies upskilled employees from its established ramp operations division. The company also highlighted its sustainability initiatives at the airport, noting that 58 percent of its Ground Support Equipment (GSE) fleet at KUL is powered by electricity.
Darren Masters, Executive Vice President for Oceania and Southeast Asia at Menzies Aviation, outlined the company’s progress at the airport.
“In less than two years we’ve established a strong operational foundation at KUL by successfully launching ramp services and evolving into a full-suite ground handling provider at one of Southeast Asia’s most important aviation hubs. We have built a strong team, upskilled our existing workforce and shown we can deliver under live operating conditions.”
Masters added that combining local capability with global standards allows the company to offer airline customers integrated ground handling solutions from arrival to departure.
Joint venture structure and market growth
Menzies Aviation operates in Malaysia through Menzies Aviation Malaysia, a joint venture established with Malaysian supply chain management company MMAG Holdings. The joint venture secured its initial 12-month ground handling license from the Malaysian Aviation Commission (MAVCOM) in November 2024. This marked Menzies’ first operational license in Malaysia.
Ramp operations officially began in January 2025. Private aviation firm MJets served as the launch customer, with Menzies handling an expected 30 weekly flights for the operator during the initial phase.
The expansion at KUL aligns with significant passenger growth at the facility. Kuala Lumpur International Airport handled 63.3 million passengers in 2025, ranking it as the 20th busiest airport globally. This represented an increase from the 57 million passengers handled in 2024, when the airport ranked 26th globally.
Menzies Aviation, headquartered in London, is the world’s largest aviation services company by the number of countries and airports served. The company provides air cargo, fuel, and ground services globally. On August 4, 2022, Kuwait-based supply chain and infrastructure company Agility completed the acquisition of Menzies Aviation for £763 million. Following the acquisition, Menzies was combined with National Aviation Services (NAS) to form the current corporate entity.
AirPro News analysis
The rapid evolution of Menzies Aviation Malaysia from a ramp-only operator to a full-suite provider in under two years illustrates a highly aggressive market penetration strategy in Southeast Asia-Pacific. By partnering with MMAG Holdings, we see Menzies navigating the local regulatory landscape efficiently, securing MAVCOM and CAAM approvals on a compressed timeline. Securing Ascend Airways Malaysia as a passenger services customer ahead of its anticipated late-2026 commercial launch is particularly strategic. It positions Menzies to capture ground handling volume directly tied to a new market entrant, bypassing the need to immediately poach established airline contracts from incumbent handlers at KUL. As passenger volumes at KUL continue to climb past 63 million annually, the ability to offer end-to-end services with a heavily electrified GSE fleet gives Menzies a distinct competitive advantage in regional tenders.
Photo Credit: Menzies Aviation
Aircraft Orders & Deliveries
ACG Delivers Sixth Boeing 737-8 to Royal Air Maroc
Aviation Capital Group completes a six-aircraft Boeing 737-8 lease with Royal Air Maroc, supporting the airline’s Vision 2037 fleet expansion.
Aviation Capital Group LLC (ACG) has completed a six-aircraft lease transaction with Compagnie Nationale Royal Air Maroc, delivering the final Boeing 737-8 to the Moroccan flag carrier on October 5, 2026.
The handover concludes an orderbook commitment initiated in March 2026, with all six CFM LEAP-1B-powered narrowbodies delivered within a six-month window. Announced in a press release by the Newport Beach, California-based lessor, the transaction provides immediate capacity for Royal Air Maroc as the airline executes a government-backed fleet expansion strategy ahead of the 2030 FIFA World Cup.
Executing the six-aircraft commitment
The delivery sequence began on March 31, 2026, when ACG announced the handover of the first Boeing 737-8 to Royal Air Maroc. Meeting the delivery schedule required coordination between the lessor, the airline, and The Boeing Company to ensure all six airframes entered service efficiently.
Carter A. White, Executive Vice President and Chief Commercial Officer of ACG, highlighted the operational coordination required to meet the timeline.
“With this latest delivery, ACG marks the addition of the sixth 737-8 to Royal Air Maroc’s fleet in six months, a fantastic achievement by everyone involved,” White said in a statement. “We are proud to support the airline’s ongoing fleet renewal and expansion plans and wish the Royal Air Maroc team every success with these new aircraft.”
The transaction adds to the portfolio of ACG, a global full-service aircraft asset manager founded in 1989 and operating as a wholly owned subsidiary of Tokyo Century Corporation. As of June 30, 2026, the lessor managed, owned, or had commitments for approximately 500 aircraft. These assets are distributed across roughly 85 airlines in about 50 countries.
Royal Air Maroc’s Vision 2037 expansion
The six leased Boeing 737-8 aircraft serve as a capacity bridge for Royal Air Maroc as it pursues a long-term growth mandate under the leadership of Chairman and Chief Executive Officer Abdelhamid Addou. Based at Mohammed V International Airport in Casablanca, the national carrier is operating under a government-backed development program dubbed “Vision 2037,” which was signed in July 2023. The airline is tasked with quadrupling its fleet size to support Morocco’s tourism targets. The country aims to attract 26 million visitors by 2030, the year it will co-host the FIFA World Cup.
According to reporting by Le360, Royal Air Maroc operated approximately 50 aircraft in 2021. The airline reached a fleet size of 70 aircraft in late September 2026 following the delivery of another Boeing 737 MAX 8, registered as CN-RHS. The carrier targets a total fleet of 74 aircraft by the end of 2026 and 88 aircraft by 2027, with an ultimate goal of 200 aircraft by 2037.
To secure the necessary airframes for the 2037 target, Royal Air Maroc launched a tender in April 2024 to acquire up to 200 aircraft directly from major manufacturers. While the airline evaluates those long-term procurement options, leasing agreements provide the short- and medium-term lift required to maintain network growth.
The capacity additions are already supporting new route development. Aviation Week reported that Royal Air Maroc has actively expanded its network throughout 2026. This expansion included the launch of a direct route from Casablanca to Los Angeles in June 2026 utilizing Boeing 787 aircraft, alongside planned frequency increases to destinations across Europe and Africa.
Photo Credit: Aviation Capital Group
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