CDB Aviation Leases Six Airbus A321neo Jets to Loong Air by 2027

CDB Aviation and Loong Air Execute Lease Agreements for Six New A321neo Aircraft

The aviation sector continues to evolve amid growing demand for modern, fuel-efficient aircraft and strategic partnerships. One such development is the recently announced lease agreement between CDB Aviation and Loong Air for six Airbus A321neo aircraft. Scheduled for delivery in 2027, this transaction not only enhances Loong Air’s operational capabilities but also reinforces a decade-long relationship between the two entities.

Loong Air, a Hangzhou-based airline, is poised to expand its domestic and international network with the integration of these new-generation aircraft. For CDB Aviation, a global aircraft lessor backed by China Development Bank, the deal reflects its ongoing commitment to supporting airline partners with sustainable fleet solutions. The A321neo, known for its fuel efficiency and extended range, aligns with both companies’ strategic goals in an increasingly competitive and environmentally conscious market.

This article explores the background of the two companies, the technical merits of the A321neo, the structure and implications of the lease agreement, and the broader context of aircraft leasing and sustainability trends shaping global aviation.

Background: CDB Aviation and Loong Air

CDB Aviation is a wholly-owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (CDB Leasing), the leasing arm of China Development Bank. With investment-grade credit ratings from S&P Global (A), Fitch (A+), and Moody’s (A2), CDB Aviation maintains a robust financial profile. As of June 2024, it managed a fleet of 510 owned and committed aircraft, valued at $11.8 billion in net book terms, and served 85 lessees across 41 countries.

Loong Air, officially known as Zhejiang Loong Airlines Co., Ltd., was established in 2011 and is headquartered in Hangzhou. With a fleet of over 70 Airbus A320-family aircraft, the airline operates both domestic and select international routes. Its partnership with CDB Aviation spans over a decade, with multiple transactions supporting fleet modernization and capacity enhancement.

Both companies have demonstrated a shared vision for growth and sustainability. The latest lease agreement further cements their strategic alignment and mutual interest in leveraging advanced aircraft technology to meet evolving market demands.

The Airbus A321neo: Technical and Operational Advantages

The Airbus A321neo is the largest member of the A320neo family, offering significant improvements in fuel efficiency, emissions, and passenger comfort. It features new-generation engines, either Pratt & Whitney PW1100G-JM or CFM International LEAP-1A, and sharklet wingtips that contribute to a 20% reduction in fuel burn and CO₂ emissions per seat compared to previous-generation aircraft.

The aircraft typically seats between 180 and 220 passengers in a two-class configuration, with a high-density layout accommodating up to 244 passengers. In its long-range (LR) variant, the A321neo can fly up to 4,000 nautical miles, enabling airlines to operate transcontinental and regional routes efficiently.

These performance metrics make the A321neo a preferred choice for airlines seeking to balance operational cost savings with environmental responsibility. Frontier Airlines, for example, reported achieving 120 miles per gallon per seat with the A321neo, the highest fuel efficiency among U.S. carriers.

“The A321neo’s superior economics and passenger comfort align perfectly with Loong Air’s vision of expanding its domestic, international, and regional network.”, Jie Chen, CEO of CDB Aviation

Cabin Design and Passenger Experience

Beyond its technical efficiency, the A321neo also delivers enhanced passenger experience through Airbus’s Airspace cabin design. This includes slimmer sidewall panels for increased shoulder space, larger overhead bins, and full LED ambient lighting that improves cabin aesthetics and comfort.

The aircraft’s flexible cabin configuration allows airlines to tailor layouts for various market needs. Delta Air Lines, for instance, operates A321neos with a 194-seat configuration, offering lie-flat business-class seats, Wi-Fi connectivity, and in-seat power outlets, features that appeal to both business and leisure travelers.

Such flexibility is particularly valuable for carriers like Loong Air, which operates across diverse route profiles. The A321neo’s cabin innovations support Loong Air’s goal of elevating passenger experience while maintaining operational efficiency.

Lease Agreement Structure and Strategic Implications

The lease agreement was signed on July 17, 2025, at Loong Air’s headquarters in Hangzhou. It covers the delivery of six Airbus A321neo aircraft from CDB Aviation’s existing orderbook, with deliveries scheduled for 2027. This transaction marks a continuation of the longstanding partnership between the two companies.

According to the official announcement, the A321neos will support Loong Air’s expansion into new domestic, regional, and international markets. The aircraft’s range and efficiency make it well-suited for high-demand routes, particularly in China’s growing secondary cities and regional hubs.

Qihong Liu, Chairman of Loong Air, emphasized the strategic importance of the deal: “The A321neo’s enhanced performance and cabin flexibility will allow us to offer an elevated travel experience to our passengers, while supporting our long-term sustainability objectives.”

Industry Context: Aircraft Leasing and Sustainability Trends

The global aircraft leasing industry plays a critical role in enabling airlines to modernize fleets without incurring the high capital costs of direct purchases. Leasing also provides flexibility in fleet management, allowing carriers to adjust capacity in response to market fluctuations.

China’s aircraft leasing market is among the fastest-growing globally, driven by rising air travel demand and government support. CDB Aviation, backed by China Development Bank, benefits from favorable regulatory frameworks and financial stability, positioning it as a key player in this expanding market.

Sustainability is another major driver of fleet renewal. Airlines are under increasing pressure to reduce carbon emissions, and aircraft like the A321neo offer a practical solution. The model is compatible with Sustainable Aviation Fuel (SAF) blends up to 50%, further enhancing its environmental credentials.

Market Dynamics and Future Outlook

The narrowbody aircraft segment, particularly the A321neo, is experiencing strong demand. As of June 2025, Airbus had received over 7,000 orders for the A321neo, with more than 1,700 deliveries completed. Its popularity is attributed to its balance of range, capacity, and cost-efficiency.

In parallel, the global aircraft leasing market is projected to grow significantly. Valued at $183.13 billion in 2024, it is expected to reach $397.21 billion by 2034. This growth is underpinned by trends such as fleet modernization, emerging market expansion, and the shift toward asset-light business models.

For lessors like CDB Aviation, these trends present opportunities to expand portfolios and deepen relationships with airline partners. For airlines, leasing provides a pathway to adopt next-generation aircraft without compromising financial flexibility.

Conclusion

The lease agreement between CDB Aviation and Loong Air for six A321neo aircraft highlights a confluence of strategic planning, technological advancement, and sustainability priorities. It underscores the value of long-term partnerships in navigating the complexities of modern aviation.

As the industry continues to recover and evolve post-pandemic, such transactions set a benchmark for future fleet strategies. They reflect a broader shift toward environmentally responsible, economically viable, and operationally flexible aviation solutions.

FAQ

What is the A321neo?
The Airbus A321neo is a fuel-efficient, narrowbody aircraft offering extended range and modern cabin features. It is part of the A320neo family.

When will Loong Air receive the aircraft?
The six A321neo aircraft are scheduled for delivery in 2027.

Why is leasing aircraft beneficial for airlines?
Leasing allows airlines to modernize fleets without large upfront costs and provides flexibility to adjust capacity as market conditions change.

Sources

CDB Aviation, Airbus, Fitch Ratings, S&P Global, Moody’s, Planespotters, IATA