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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.

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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.

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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.

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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.

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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

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Aircraft Orders & Deliveries

China Airlines Orders Five Additional Airbus A350-1000 Aircraft

China Airlines adds five Airbus A350-1000s to its fleet, enhancing capacity on transpacific and European routes with deliveries from 2026.

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This article is based on an official press release from Airbus and additional industry data regarding fleet modernization.

China Airlines Bolsters Long-Haul Capacity with Additional A350-1000 Order

China Airlines (CAL) has officially signed a firm orders for five additional Airbus A350-1000 aircraft, signaling a continued commitment to modernizing its long-haul operations. Announced on December 18, 2025, this agreement increases the Taiwan-based carrier’s total backlog for the A350-1000 variant to 15 aircraft. The move is part of a broader strategy to replace aging widebody jets and enhance capacity on high-density routes connecting Asia with North America and Europe.

According to the official statement released by Airbus, these new aircraft will join the airline’s existing fleet of 15 A350-900s. The decision to expand the A350-1000 order book underscores the operator’s reliance on the A350 family’s commonality, which allows for streamlined pilot training and maintenance procedures. Deliveries for the newly ordered jets are scheduled to commence in 2026 and continue through 2029.

The deal also highlights the competitive landscape of widebody aviation in the Asia-Pacific region. By securing these additional units, China Airlines aims to deploy its flagship product on slot-constrained routes where maximizing passenger count per movement is critical. The aircraft will be powered by Rolls-Royce Trent XWB-97 engines, known for their efficiency in long-range operations.

Strategic Deployment and Cabin Innovation

China Airlines plans to utilize the A350-1000 primarily for its most prestigious long-haul markets. Industry reports indicate that the aircraft will be deployed on key transpacific routes to New York (JFK), Los Angeles (LAX), Seattle (SEA), and Ontario, California (ONT), as well as European hubs like London Heathrow (LHR). The A350-1000 offers significantly higher capacity than the -900 variant, making it a strategic asset for airports with limited landing slots.

Next-Generation Passenger Experience

Coinciding with these deliveries, the airline is preparing to unveil a major upgrade to its onboard product. Sources familiar with the carrier’s fleet planning suggest a new cabin design will debut in 2027. This retrofit is expected to feature business class suites with closing doors, 4K entertainment screens, and wireless charging capabilities, aiming to rival premium competitors such as Singapore Airlines and Cathay Pacific.

The interior aesthetic will likely continue the carrier’s “Oriental aesthetics” theme, utilizing persimmon wood-grain finishes and mood lighting to evoke a boutique hotel atmosphere. While the current A350-900 seats 306 passengers, the larger -1000 variant is projected to accommodate between 350 and 400 passengers, providing a substantial boost in premium economy and economy seat inventory.

Executive Commentary

Both China Airlines and Airbus executives emphasized the efficiency and passenger comfort benefits of the A350-1000. In the official press release, Kao Shing-Hwang, Chairman of China Airlines, noted the alignment of this order with the carrier’s sustainability and service goals.

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“Expanding our A350-1000 fleet marks another important step in our long-term growth strategy. The A350’s exceptional efficiency and passenger comfort align with our goals to modernize our fleet, enhance long-haul competitiveness, and deliver an elevated travel experience to our customers.”

Kao Shing-Hwang, Chairman of China Airlines

Benoit de Saint-Exupéry, Airbus EVP Sales, added that the repeat order validates the aircraft’s performance in the heavy widebody segment.

“This follow-on order is a strong vote of confidence in the A350-1000 as the right aircraft for China Airlines’ future network ambitions. Its next-generation efficiency, range, and cabin comfort brings even greater value to the airline and its passengers.”

Benoit de Saint-Exupéry, Airbus Sales

AirPro News Analysis

This order reinforces a “split fleet” procurement strategy that has become increasingly common among major global carriers. While China Airlines has committed to the Boeing 777X for specific high-volume trunk routes and the 787 Dreamliner for regional replacement, the expansion of the A350-1000 fleet secures Airbus’s position as the backbone of the airline’s medium-to-large widebody operations.

From a financial perspective, based on 2025 list prices of approximately $366.5 million per unit, the deal holds a theoretical face value of roughly $1.83 billion, though actual acquisition costs are typically 40-50% lower after standard industry discounts. Environmentally, the shift is significant; the A350-1000 offers a 25% reduction in fuel burn compared to the previous generation aircraft it replaces, such as the Boeing 747-400 freighters and older passenger jets. This efficiency gain is a critical component of the airline’s roadmap to achieving Net Zero carbon emissions by 2050.

Sources

Photo Credit: Airbus

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Aircraft Orders & Deliveries

Natilus Launches India Subsidiary and Secures SpiceJet Aircraft Order

Natilus expands into India with a Mumbai subsidiary and a 100-aircraft order from SpiceJet for its Horizon blended-wing body plane.

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This article is based on an official press release from Natilus.

Natilus Launches India Subsidiary; Secures Commitment for 100 Aircraft from SpiceJet

Natilus, a U.S.-based aerospace manufacturers specializing in Blended-Wing Body (BWB) Commercial-Aircraft, has officially announced its expansion into the Indian aviation market. According to the company’s press release, the move includes the debut of a new subsidiary, Natilus India, headquartered in Mumbai. This strategic expansion is designed to address the growing demand in one of the world’s fastest-developing aviation sectors.

Coinciding with the launch of the new subsidiary, Natilus announced a significant commercial agreement with Indian low-cost carrier SpiceJet. The Airlines has committed to purchasing 100 units of Natilus’s “Horizon” passenger aircraft. The company noted that this transaction is subject to the successful Certification of the aircraft, which is currently in the development phase.

Strategic Expansion and Leadership

The establishment of Natilus India represents a direct effort to localize operations within a key global market. In its announcement, Natilus confirmed the appointment of Ravi Bhatia as the Regional Director for the new subsidiary. Bhatia’s role will focus on overseeing in-country operations, managing regulatory engagement with Indian aviation authorities, and fostering industrial Partnerships.

The company stated that this move aligns with India’s “Make in India” initiative. By establishing a physical presence in Mumbai, Natilus aims to source components and engineering services locally, integrating Indian manufacturing capabilities into its global Supply-Chain.

The SpiceJet Commitment

The purchase order from SpiceJet marks a pivotal moment for the “Horizon” program. If completed, this deal would position SpiceJet as an early adopter of BWB technology in the region. The “Horizon” is Natilus’s flagship passenger model, designed to seat between 200 and 240 passengers.

According to performance data released by Natilus, the aircraft is engineered to replace traditional narrowbody fleets, such as the Boeing 737 and Airbus A320 families, with a range of approximately 3,500 nautical miles.

Technological Innovation: The Blended-Wing Body

Natilus is distinguishing itself from traditional aerospace manufacturers through its focus on the Blended-Wing Body design. Unlike the conventional “tube-and-wing” architecture, the BWB design integrates the fuselage and wings into a single lifting body.

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In its official communications, Natilus claims this aerodynamic shift offers significant efficiency gains:

  • Fuel Efficiency: The design reportedly consumes 30% less fuel than comparable traditional aircraft.
  • Operational Costs: The company projects a 50% reduction in overall operating costs.
  • Volume: The airframe offers 40% more interior volume, allowing for flexible passenger or cargo configurations without increasing the aircraft’s airport footprint.

AirPro News Analysis: Market Context and Risks

While the announcement signals strong momentum for Natilus, the timeline and regulatory hurdles remain significant factors. The “Horizon” aircraft is expected to enter service in the early 2030s, meaning the realization of the SpiceJet order is likely a decade away. Furthermore, the deal is explicitly “subject to certification.” Natilus is currently pursuing FAA Part 25 certification in the United States, which must be achieved before the Directorate General of Civil Aviation (DGCA) in India can validate the aircraft for local operations.

For SpiceJet, this commitment appears to be a long-term strategic bet on efficiency. The airline, which has faced recent financial volatility, is looking to future-proof its fleet against rising fuel costs. By locking in orders for an aircraft that promises 50% lower operating costs, the carrier is signaling a focus on long-term profitability despite current market challenges.

The move also places Natilus in direct competition with other BWB developers, such as JetZero, which has secured backing from major U.S. carriers. However, by establishing a dedicated subsidiary in India, Natilus is attempting to secure a “first-mover” advantage in the Asian market, which industry forecasts suggest will require over 2,200 new aircraft by 2040.

Sources

Photo Credit: Natilus

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Aircraft Orders & Deliveries

Star Air in Talks for $1 Billion Embraer E2 Jet Fleet Expansion

Star Air is negotiating a $1 billion deal to acquire up to 20 Embraer E2 jets, marking Embraer’s first direct E2 commercial order in India with deliveries from 2028.

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This article summarizes reporting by Bloomberg and journalists Mihir Mishra and Siddharth Philip. And publicly available datas.

Star Air in Talks for $1 Billion Embraer Fleet Expansion

Star Air, recognized as India’s largest private regional carrier, is reportedly in advanced discussions to acquire up to 20 aircraft from Brazilian aerospace manufacturer Embraer SA. According to reporting by Bloomberg, the potential deal is valued at approximately $1 billion based on list prices, marking a significant potential breakthrough for Embraer in the competitive Indian aviation market.

If finalized, this acquisition would represent the first direct commercial order for Embraer’s new E2 generation jets by an Indian airline. The move signals a strategic shift for Star Air, which currently operates a fleet of leased Embraer aircraft, toward asset ownership and long-term capacity expansion.

Details of the Proposed Acquisition

According to sources familiar with the matter cited by Bloomberg, the negotiations center on the Embraer E-Jet E2 family, specifically the E195-E2 or E190-E2 models. These aircraft are designed to bridge the gap between smaller turboprops and larger narrowbody jets like the Airbus A320, offering capacity for up to 146 passengers.

Deal Structure and Timeline

Industry reports indicate the deal is likely structured to include:

  • Total Units: Up to 20 aircraft.
  • Order Split: A probable mix of 10 firm orders and 10 options to be exercised at a later date.
  • Valuation: Estimated at $1 billion at list prices, though airlines typically negotiate significant discounts for bulk orders.
  • Delivery: Deliveries are projected to commence in the fiscal year ending March 2028.

This potential order aligns with Star Air’s broader “Vision 2030” strategy. As reported by the Economic Times and other outlets in November 2025, the airline aims to expand its fleet to 50 aircraft by the end of the decade. Currently, the carrier operates an all-Embraer fleet consisting of 50-seater ERJ 145s and dual-class E175s.

Financial Backing and Strategic Context

The scale of this acquisition requires substantial capital, and Star Air has been actively strengthening its balance sheet to support such expansion. The airline is the aviation arm of the Sanjay Ghodawat Group (SGG), a diversified conglomerate with interests ranging from consumer products to energy.

In November 2025, Star Air successfully raised INR 150 crore (approximately $18 million) in a Series B funding round. This round attracted marquee investors, including Micro Labs Ltd and Deepak Agarwal. Furthermore, the airline has indicated plans to raise an additional INR 200 crore by the 2026-27 fiscal year to fund pre-delivery payments and operational scaling.

Embraer’s Push into India

For Embraer, securing a firm order from Star Air would be a critical validation of its “Profit Hunter” marketing campaign in South Asia. While the manufacturer supplies aircraft to the Indian Air Force and the Border Security Force, it has historically struggled to break the commercial duopoly held by Airbus and Boeing in the region.

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To address this, Embraer opened a new corporate office in New Delhi in October 2025. This localized presence appears to be yielding results, as the manufacturer positions the E2 jet as the ideal solution for India’s regional connectivity scheme, UDAN (Ude Desh ka Aam Nagarik).

AirPro News Analysis

The Case for “Right-Sizing” in Indian Aviation

At AirPro News, we view this potential transaction as a pivotal moment for the concept of “right-sizing” in the Indian market. For years, Indian carriers have relied heavily on 180-seat Airbus A320s or Boeing 737s. While efficient on trunk routes (e.g., Delhi to Mumbai), these aircraft are often too large to operate profitably on thinner regional routes connecting Tier-2 and Tier-3 cities.

Conversely, turboprops like the ATR-72 are efficient but slower and lack the range for longer regional sectors. The Embraer E2 family sits in the middle, offering jet speeds and ranges with a seat capacity (100–146) that lowers the financial risk per flight. If Star Air proceeds with this order, it validates the business case that profitability in India is not solely about filling the largest possible plane, but about matching capacity to demand.

Frequently Asked Questions

What is the value of the Star Air and Embraer deal?

The deal is estimated to be worth approximately $1 billion based on list prices, though final transaction prices are usually lower.

Which aircraft is Star Air buying?

The airline is considering the Embraer E-Jet E2 family, likely the E195-E2 or E190-E2 models.

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When will the new aircraft be delivered?

Deliveries are expected to begin in the fiscal year ending March 2028.

Is Star Air a public company?

No, Star Air is a private regional carrier and part of the Sanjay Ghodawat Group. However, it has raised external capital through Series B funding.

Sources

Photo Credit: Embraer E195-E2

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