Aircraft Orders & Deliveries
CDB Aviation Leases Six Airbus A321neo Jets to Loong Air by 2027
CDB Aviation and Loong Air sign lease for six fuel-efficient Airbus A321neo aircraft, supporting fleet growth and sustainability goals 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 COâ‚‚ 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
Photo Credit: JetPhoto
Aircraft Orders & Deliveries
ANA Holdings Orders 8 More Embraer E190-E2 Jets, Total Hits 23
ANA Holdings expands its E190-E2 order to 23 aircraft, with IBEX Airlines set to operate the jets under an ACMI deal from FY2029.
ANA Holdings Inc. (ANA HD) has finalized an agreement with Embraer to acquire eight additional Embraer E190-E2 regional jets, bringing the Japanese aviation group’s total firm orders for the type to 23 aircraft. The transaction, announced on September 3, 2026, underpins a newly established capacity purchase agreement that will see the modern narrowbodies replace aging regional aircraft on domestic Japanese routes.
In a press release issued by Embraer, the manufacturer confirmed the order accelerates ANA HD’s regional fleet modernization strategy. The aircraft will be deployed under a comprehensive Aircraft, Crew, Maintenance, and Insurance (ACMI) partnership with Japanese regional carrier IBEX Airlines, an arrangement formally approved by the ANA HD board of directors on July 29, 2026.
Fleet modernization and the IBEX Airlines partnership
Under the terms of the ACMI agreement, All Nippon Airways (ANA) will serve as the marketing carrier, overseeing route planning and ticket sales for the regional network. IBEX Airlines will operate the flights using the newly ordered Embraer E190-E2 aircraft. The introduction of the E2 fleet will allow IBEX Airlines to retire its legacy fleet of Bombardier CRJ700 aircraft.
Deliveries of the new Embraer jets to ANA HD are scheduled to begin in 2028. The companies are targeting fiscal year 2029 for the official launch of the ACMI operations between ANA and IBEX Airlines.
ANA Holdings President and CEO Koji Shibata stated that the additional E190-E2 order accelerates the company’s efforts to build a sustainable regional aviation network in Japan. He noted the agreement underscores ANA HD’s confidence in Embraer’s technology to reduce both environmental impact and operating costs while elevating regional connectivity.
Embraer’s growing footprint in the Japanese market
The September 3 agreement builds upon ANA HD’s initial commitment to the E2 program. The company placed its first firm order for 15 E190-E2 aircraft, along with five options, on February 25, 2025. ANA HD originally selected the Embraer E190-E2 to fulfill its regional fleet requirements following the 2023 cancellation of the Mitsubishi SpaceJet program, for which ANA was the intended launch customer.
Embraer Commercial Aviation President and CEO Arjan Meijer said the manufacturer is honored by the continued confidence from ANA HD and looks forward to supporting the airline group’s growth plans.
“With its exceptional economics and fuel efficiency, the E2 will support expanded connectivity across Japan along with better comfort and space for passengers,” Meijer said.
AirPro News analysis
We view ANA HD’s decision to exercise further E190-E2 orders as a pragmatic stabilization of its regional strategy following the collapse of the domestic SpaceJet initiative. By structuring the deployment through an ACMI agreement with IBEX Airlines, ANA HD effectively outsources the operational transition while retaining network control and marketing revenue. The transition from the Bombardier CRJ700 to the E190-E2 will provide a substantial step up in capacity and fuel efficiency, aligning with broader industry trends toward upgauging regional networks with next-generation crossover narrowbodies. The timeline also provides IBEX Airlines with a clear runway to phase out its older airframes before maintenance costs on the out-of-production CRJ fleet escalate further.
Sources: Embraer
Photo Credit: Embraer
Aircraft Orders & Deliveries
Sun PhuQuoc Airways Takes Delivery of First A321neo LR
Sun PhuQuoc Airways receives Vietnam’s first A321neo LR, enabling direct long-range routes to Japan and Kazakhstan from Phu Quoc.
Sun PhuQuoc Airways has taken delivery of its first Airbus A321neo LR, marking the first time a Vietnamese carrier has owned and operated the long-range narrowbody variant.
The aircraft, registered as VN-A925, arrived in Hanoi (HAN) on September 3, 2026. In an official statement, the leisure-focused airline highlighted the aircraft’s extended range as a primary driver for its upcoming international network expansion.
Fleet expansion and route capabilities
The Airbus A321neo LR features a maximum range of 4,000 nautical miles, or approximately 7,400 kilometers. This capability allows the carrier to reach deeper into Asia and potentially Eastern Europe directly from its base in Vietnam.
According to flight tracking data from Flightradar24, the aircraft was ferried from Kuala Lumpur (KUL) to Denpasar (DPS) in late August before making its final delivery flight to Hanoi. Sun PhuQuoc Airways emphasized the strategic value of the acquisition in its announcement.
“With a range of up to 4,000 nautical miles, the A321neo LR is built to take Sun PhuQuoc Airways farther, opening the door to more destinations and more journeys beyond Vietnam,” the company stated.
Strategic shift for Vietnamese leisure travel
Backed by the Sun Group conglomerate, Sun PhuQuoc Airways operates a leisure-focused model designed to boost tourism to Phu Quoc (PQC). The airline has been rapidly expanding its fleet to support an international growth strategy.
The addition of the A321neo LR enables the airline to connect Phu Quoc to distant markets such as Japan and Kazakhstan. Operating these routes with a narrowbody aircraft reduces the financial risk compared to deploying larger, harder-to-fill widebody jets on unproven leisure routes.
AirPro News analysis
We view the acquisition of the Airbus A321neo LR as a calculated step for Sun PhuQuoc Airways to capture long-haul leisure traffic without the overhead of a widebody fleet. By utilizing the A321LR, the airline can test thinner, long-distance routes directly to Phu Quoc. This mirrors a broader global industry trend where operators leverage long-range narrowbody aircraft to bypass traditional major hubs and connect secondary leisure destinations directly to international source markets.
Sources: Sun PhuQuoc Airways
Photo Credit: Sun PhuQuoc Airways
Aircraft Orders & Deliveries
MACH Aircraft Leasing Platform Doubles to USD 3 Billion
La Caisse and SMBC Aviation Capital expand MACH to USD 3B after early deployment of initial capital, extending through December 2029.
La Caisse and SMBC Aviation Capital have doubled the size of their joint aircraft financing platform, Maple Aircraft Company Holdings Limited (MACH), to USD 3 billion, following the rapid deployment of their initial capital commitment ahead of schedule.
Announced on September 3, 2026, in Montréal and Dublin, the expansion extends the platform’s investment period through December 2029. According to a joint press release, the move underscores strong institutional appetite for aviation assets and ongoing airline demand for modern, fuel-efficient Commercial-Aircraft.
Rapid deployment and portfolio growth
Originally launched in January 2024 with a USD 1.5 billion commitment, the MACH platform was designed to provide flexible financing solutions to global Airlines. The partners deployed that initial capital faster than anticipated, prompting the decision to inject an additional USD 1.5 billion to capture emerging market opportunities.
The platform currently holds a portfolio of 21 aircraft leased to 13 airline customers across 10 global markets. The Investments strategy remains focused on acquiring new-technology aircraft that offer improved fuel efficiency, aligning with broader industry fleet renewal efforts and Sustainability targets.
Strategic partnership and market dynamics
SMBC Aviation Capital Chief Commercial Officer Barry Flannery stated that the successful deployment of MACH highlights the strength of the Partnerships and the continuing demand for flexible aircraft financing.
“Expanding the platform with our trusted partner, La Caisse, positions us to build on this momentum and continue to support our airline customers worldwide with access to modern, fuel-efficient aircraft of the types that are most in demand,” Flannery said.
Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit at La Caisse, noted that the platform’s execution since 2024 validates the combination of specialized aviation expertise and patient long-term capital. He added that favorable market dynamics position MACH to capitalize on attractive opportunities across the leasing sector.
AirPro News analysis
We view the rapid expansion of the MACH platform as a clear indicator of the current supply-demand imbalance in the commercial aircraft market. With original equipment Manufacturers (OEMs) struggling to meet delivery targets, airlines are increasingly reliant on lessors to secure capacity. Recent industry data indicates that aviation asset sales activity has increased throughout 2026, generating strong proceeds at premiums to adjusted base values.
SMBC Aviation Capital has capitalized on this environment aggressively in 2026. The lessor recently closed a USD 2 billion senior unsecured bond offering in July and placed highly sought-after narrowbody aircraft, including Boeing 737 MAX 8s with Vietnam Airlines and Airbus A321XLRs with Air Seychelles. The willingness of institutional investors like La Caisse to double down on aviation assets suggests confidence that lease rates and aircraft valuations will remain elevated through the end of the decade.
Sources: SMBC Aviation Capital
Photo Credit: SMBC Aviation Capital
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