Vietjet Ends COMAC C909 Lease Highlighting Market Challenges

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