Commercial Aviation
Vietjet Ends COMAC C909 Lease Highlighting Market Challenges
Vietjet concludes six-month COMAC C909 wet-lease citing high costs and lack of local support, underscoring challenges for COMAC in SE Asia.
Vietjet and COMAC: The End of a Six-Month Experiment
In the highly competitive world of Commercial-Aircraft, every decision, from fleet acquisition to route planning, is scrutinized for its economic and strategic implications. The recent conclusion of Vietnamese low-cost carrier Vietjet’s lease of two Chinese-made COMAC C909 aircraft marks a significant moment, not just for the Airlines, but for the broader aerospace manufacturing landscape. This development provides a practical case study on the immense challenges new players face when trying to penetrate a market long dominated by giants like Airbus and Boeing. The six-month trial was seen as a landmark for China’s aviation ambitions, representing a key step in its goal to establish its aircraft in the bustling Southeast Asian market.
The initial agreement, which saw the COMAC C909s take to the skies over Vietnam in April 2025, was layered with meaning. Occurring shortly after a high-level state visit, the lease was widely interpreted as a diplomatic and economic gesture aimed at strengthening ties between Vietnam and China. For Vietjet, it was an opportunity to test a new aircraft type on specific domestic routes, particularly those requiring specialized performance, such as the service to Con Dao Island with its short runway. For the Commercial Aircraft Corporation of China (COMAC), it was a crucial foothold in a foreign market and a chance to prove the C909’s operational capabilities on an international stage.
However, as the six-month contract expired on October 18, 2025, the decision not to renew has shifted the narrative. While the aircraft themselves reportedly performed without issue, the episode underscores the complex web of logistics, economics, and support infrastructure that dictates an airline’s fleet strategy. We will explore the factors that led to this decision, the operational realities of the wet-lease model, and the wider implications for COMAC’s global aspirations. This is not a story of aircraft failure, but one of business pragmatism and the high bar for entry into the global aviation ecosystem.
The Wet-Lease Arrangement: A Closer Look
The two COMAC C909 aircraft, registrations B-652G and B-656E, were supplied to Vietjet by China’s Chengdu Airlines under a wet-lease agreement. This type of lease, also known as ACMI, is a comprehensive package where the lessor provides the Aircraft, Crew, Maintenance, and Insurance. Essentially, it’s a turnkey solution that allows an airline to quickly add capacity without the long-term commitments of purchasing an aircraft or the complexities of a dry-lease, where the airline provides its own crew and operational support. This model is often used to cover seasonal demand, test new routes, or bridge capacity gaps while awaiting new aircraft deliveries.
For Vietjet, a carrier laser-focused on cost efficiency, the wet-lease model presented a double-edged sword. On one hand, it allowed for a low-risk trial of the COMAC C909, an aircraft not previously operated in Vietnam. On the other, it is a significantly more expensive arrangement than a standard dry-lease or outright ownership. The costs associated with using a foreign crew, along with maintenance and support managed by Chengdu Airlines, proved to be a substantial financial burden. For a low-cost carrier, where every operational expense is meticulously managed, these elevated costs were ultimately unsustainable over the long term.
The operational side of the lease appeared to run smoothly. Sources familiar with the matter confirmed that the aircraft performed acceptably during their six months of service. They were primarily used on domestic routes from Hanoi and Ho Chi Minh City, including the challenging route to Con Dao Island. The C909, formerly known as the ARJ21, is a regional jet designed for such missions. The successful deployment on these routes demonstrated the aircraft’s technical capabilities, but the underlying economic framework of the lease was the critical factor in the final decision.
The decision not to extend the lease was primarily driven by high operating costs associated with the wet-lease model, which included foreign crew, maintenance, and support. The lack of a local parts and support network in Vietnam also contributed to increased expenses and logistical challenges.
Logistics and Strategy: The Deciding Factors
Beyond the immediate costs of the wet-lease, deeper logistical hurdles played a crucial role in Vietjet’s decision. A key challenge was the absence of a local maintenance, repair, and overhaul (MRO) and parts support network for COMAC aircraft in Vietnam. In the modern aviation industry, having a robust and responsive support system is non-negotiable. When a part needs replacement or specialized maintenance is required, airlines rely on a global network to provide components and expertise swiftly to minimize aircraft downtime. Without this infrastructure in place for the C909, any required parts had to be sourced directly from China, adding layers of cost, complexity, and potential delays.
This logistical reality clashes directly with the business model of a low-cost carrier like Vietjet, which relies on fleet commonality to streamline operations. The airline’s primary fleet consists of over 100 Airbus A320 and A321 models, with significant Orders for Boeing 737 MAX jets. This standardization allows for efficiencies in crew training, maintenance procedures, and spare parts inventory. Introducing a new aircraft type from a different manufacturer, especially one without an established global support network, disrupts this finely tuned operational harmony. The added complexity and expense were significant factors weighing against the continuation of the COMAC lease.
Regulatory context also added another layer to the situation. While reforms had made it possible for aircraft certified by Chinese authorities to operate in Vietnam, some restrictions under local aviation law were still cited as a contributing factor. Ultimately, Vietjet has indicated no immediate plans to purchase or lease aircraft from COMAC, opting instead to focus on its existing strategy of expanding its established Airbus and Boeing fleets. The end of the lease will also see the airline withdraw from the Con Dao routes, as it lacks other suitable aircraft in its current fleet for that specific mission.
A Setback for Ambition: The Broader Implications
The conclusion of the Vietjet contract is more than just a footnote in an airline’s operational history; it is a notable setback for COMAC’s international ambitions. The six-month lease was a significant milestone, marking the first use of Chinese-made commercial jets on domestic routes in Vietnam and serving as a critical test case for COMAC’s expansion into the competitive Southeast Asian market. Its premature end highlights the monumental challenge of competing with the entrenched duopoly of Airbus and Boeing, who have spent decades building not just aircraft, but comprehensive global ecosystems of sales, support, and service.
This episode serves as a clear illustration that building a technically sound aircraft is only part of the equation. To win over major airlines, especially cost-conscious carriers, a manufacturer must provide a seamless and cost-effective operational experience. This includes accessible MRO facilities, a reliable supply chain for spare parts, and a proven track record of support. COMAC’s journey is still in its early stages, and establishing this global support network remains a primary hurdle. Furthermore, securing certification from major international regulators like the European Union Aviation Safety Agency (EASA) and the U.S. Federal Aviation Administration (FAA) is crucial for wider adoption, a process that remains a significant challenge for both the C909 and the larger C919 aircraft.
FAQ
Question: Why did Vietjet stop operating the two COMAC C909 aircraft?
Answer: Vietjet stopped operations because its six-month wet-lease agreement with Chengdu Airlines expired on October 18, 2025. The airline chose not to renew the contract, primarily due to the high operating costs associated with the wet-lease model and logistical challenges related to maintenance and parts support.
Question: Were there any safety or performance issues with the Chinese-made aircraft?
Answer: No, sources familiar with the matter confirmed that the two COMAC C909 aircraft performed acceptably and without any operational issues during the six-month lease period.
Question: What is a wet-lease agreement?
Answer: A wet-lease, also known as an ACMI lease, is an arrangement where the leasing company provides the aircraft, crew, maintenance, and insurance to the airline. It is a comprehensive, turnkey solution but is generally more expensive than other leasing models.
Question: What does this mean for COMAC’s expansion plans?
Answer: The end of the Vietjet contract is considered a setback for COMAC’s ambitions to expand its presence in the Southeast Asian aviation market. It highlights the challenges the manufacturer faces in competing with established players like Airbus and Boeing, particularly in providing a cost-effective and logistically simple global support network for its aircraft.
Sources: Reuters
Photo Credit: Reuters
Aircraft Orders & Deliveries
Airbus A350F Clears Ground Tests Before First Flight
Airbus completes Virtual First Flight program for the A350 Freighter ahead of maiden flight targeted for late September 2026.
Airbus has completed the final simulation milestones for the A350 Freighter (A350F) and is preparing the aircraft for its maiden flight from Toulouse, France, targeted for late September 2026.
In a press release issued on September 14, 2026, the manufacturer detailed the completion of its “Virtual First Flight” (VFF) program and ground vibration testing. The milestone marks the final phase of ground preparations before the new widebody freighter enters a 400-hour flight test campaign aimed at securing certification in 2027. The A350F is designed to challenge Boeing in the heavy cargo market, featuring a maximum payload capacity of 111 tonnes and a range of 4,700 nautical miles.
Aerodynamic modeling and the Virtual First Flight
The A350F utilizes a unique fuselage configuration that requires extensive aerodynamic validation. Laurent Bussiere, Lead Flight Test Engineer for the A350F program, noted that the aircraft combines the forward fuselage length of the Airbus A350-900 with the rear fuselage length and wings of the Airbus A350-1000.
“It’s not an A350-1000 and it’s not an A350-900, but rather it’s between both. So we need to look at the behavior of the whole system with this unique model,” Bussiere said.
To prepare the five-person flight test crew, Airbus conducted the VFF program in early September 2026. The program consisted of 13 simulation sessions, each lasting approximately five hours. Bussiere stated that the simulation setup is 90% representative of the physical aircraft. The remaining 10% of the aerodynamic characteristics remain an unverified model. Because of this variable, the initial flight will be executed in “Direct Law”, requiring manual control by the flight crew until the aerodynamic model is validated in the air.
Flight test campaign and EASA certification
The global certification campaign is scheduled to last nine months and encompass 400 flight-hours. Airbus will utilize two test aircraft for the program. The first aircraft, designated MSN700, features a “flying parcel” test livery and will focus on aerodynamic performance, handling, and autopilot systems. The second aircraft, MSN701, is dedicated to system-related testing, including fire and smoke detection as well as hot and cold weather campaigns.
The European Union Aviation Safety Agency (EASA) is actively involved in the flight test plan. EASA pilots and flight test engineers will participate as onboard witnesses during performance flights ahead of the formal certification phase planned for 2027.
Airbus is also prioritizing ground operations during the test phase to ensure the aircraft is ready for commercial service.
“In terms of cargo operation, which is the A350F’s entire raison d’être, we are focusing on maturity right from the start. Our target is to be able to load and unload various representative containers and payloads every day after flight,” Bussiere said.
Order book and market entry
Airbus targets the first commercial delivery of the A350F for the second half of 2027. The manufacturer states the freighter will deliver a 40% reduction in fuel consumption and carbon emissions compared to previous generation aircraft with similar payload and range capabilities.
According to reporting by Cargo Facts, an undisclosed customer placed a firm order for eight A350Fs on August 31, 2026. This transaction brought the total firm order book for the type to 115 aircraft ahead of the maiden flight.
AirPro News analysis
We note that the nine-month flight test campaign outlined by Airbus represents an aggressive schedule for a widebody derivative with significant structural modifications. Flight test programs for aircraft of this size typically require 12 to 15 months to complete. While the extensive use of the Virtual First Flight program mitigates some developmental risk, any delays discovered during the 400-hour physical test campaign could push the targeted second-half 2027 entry into service into 2028.
Sources: Airbus
Photo Credit: Airbus
Commercial Aviation
airBaltic Files Chapter 11 Bankruptcy, Secures 350M DIP Financing
airBaltic filed for Chapter 11 on Sept 14, 2026, securing €350M in DIP financing to restructure amid fuel costs and geopolitical pressures.
Air Baltic Corporation AS (airBaltic) voluntarily initiated Chapter 11 bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York on September 14, 2026, securing €350 million in debtor-in-possession financing to maintain scheduled flight operations.
The Latvian national carrier announced the filing in a press release, citing the need to restructure its financial obligations amid severe liquidity pressures. The Airlines financial strain has been exacerbated by escalating jet fuel prices, which have doubled as a result of the United States conflict with Iran and broader Middle East instability.
Financial restructuring and debtor-in-possession financing
To support operations during the court-supervised process, airBaltic secured €350 million in debtor-in-possession (DIP) financing. According to reporting by Reuters, the financing carries an approximate interest rate of 12 percent, structured as the Secured Overnight Financing Rate (SOFR) plus 8 percent. The lending syndicate includes Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management.
The Chapter 11 filing follows a series of efforts to stabilize the airline’s capital structure. In April 2026, airBaltic received a €30 million state loan from the Latvian government. In early September 2026, the carrier considered an interim bond financing plan of up to €257 million. However, ch-aviation reported that the airline abandoned this plan because it carried an unfavorable 25 percent interest rate, opting instead for the US bankruptcy process.
Andrejs Martinovs, Chairman of the Supervisory Board, stated in the company’s press release that the process provides a clear framework for reaching agreements with creditors and aircraft lessors.
“We have carefully assessed the restructuring options available to the company, with one priority in focus – to give airBaltic the best possible basis to continue operating and to build a sustainable financial structure,” Martinovs said.
Operational continuity and labor negotiations
Despite the bankruptcy filing, airBaltic confirmed that all scheduled flights and customer services will continue without interruption. The airline currently operates a uniform fleet of 54 Airbus A220-300 aircraft.
Chief Executive Officer Erno Hildén, who assumed leadership of the airline in December 2025 following the departure of former CEO Martin Gauss, indicated that the restructuring will involve workforce adjustments. Hildén told Reuters on September 14, 2026, that the company is currently carrying out consultations with labor unions regarding potential cuts and capacity reductions.
In court filings reviewed by Euronext, the airBaltic Board of Directors noted that the carrier has been experiencing acute financial stress due to a combination of financial and geopolitical factors. The restructuring process is expected to conclude by June 2027, according to Aviation Week.
AirPro News analysis
We view airBaltic’s decision to utilize the US Chapter 11 framework as a pragmatic pivot after the prohibitive costs of the European high-yield bond market became apparent in early September 2026. A 25 percent interest rate on interim financing would have likely crippled the carrier’s long-term viability. By securing DIP financing at a more manageable 12 percent, airBaltic gains the necessary breathing room to renegotiate leases on its Airbus A220-300 fleet. The macroeconomic environment remains hostile for European carriers exposed to Eastern European airspace closures and spiking fuel costs, suggesting that airBaltic’s restructuring success will heavily depend on external geopolitical stabilization before its targeted June 2027 exit.
Sources: airBaltic
Photo Credit: airBaltic
Aircraft Orders & Deliveries
Boyu Capital to Acquire Xiamen Aircraft Leasing by End of 2026
Boyu Capital agrees to buy Xiamen Aircraft Leasing, a China-based mid-life aircraft and engine lessor, with closing targeted for end of 2026.
This article summarizes reporting by Bloomberg News.
Asia-focused investment firm Boyu Capital has reached an agreement to acquire Xiamen Aircraft Leasing Co., Ltd., signaling continued private equity interest in the Chinese aviation asset management sector. The transaction is targeted to close by the end of 2026, according to reporting by Bloomberg News on September 10, 2026.
The acquisition targets a specialized player in the mid-life commercial aircraft, engine, and helicopter leasing market. Xiamen Aircraft Leasing, established in the Xiamen Free Trade Zone in September 2015, focuses on asset management, trading, and recycling. Financial terms and the exact valuation of the acquisition have not been publicly disclosed, and neither company has issued a formal press release confirming the agreement.
Path to acquisition
The agreement follows a strategic review initiated earlier in the year. In March 2026, Xiamen Aircraft Leasing hired an adviser to explore a potential sale of the business.
The process attracted attention from multiple investment firms looking to expand their footprint in the Asian aviation market. Bloomberg reported that Bain Capital was among the entities expressing interest before Boyu Capital ultimately secured the agreement.
Recent fleet activity
Leading up to the acquisition, Xiamen Aircraft Leasing maintained an active presence in the secondary aircraft market. The lessor has continued to execute transactions involving widebody assets to support its mid-life management strategy.
In December 2025, the company acquired two Airbus A330-300 aircraft from commercial aircraft lessor Azorra. The aircraft, carrying manufacturer serial numbers (MSN) 1432 and 1579, are currently on lease to Sichuan Airlines (3U).
AirPro News analysis
We view this acquisition as a clear indicator of the ongoing consolidation within the Asian aviation leasing market. Private equity firms like Boyu Capital are increasingly drawn to specialized lessors that manage mid-life assets, as these platforms offer predictable cash flows and opportunities in the aircraft recycling and parts trading sectors. The transition of Xiamen Aircraft Leasing to new ownership will likely provide the capital backing necessary to expand its portfolio in a constrained global supply chain environment.
Sources: Bloomberg News
Photo Credit: Xiamen Aircraft Leasing
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