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.
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 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.
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.
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.
Question: Why did Vietjet stop operating the two COMAC C909 aircraft? Question: Were there any safety or performance issues with the Chinese-made aircraft? Question: What is a wet-lease agreement? Question: What does this mean for COMAC’s expansion plans? Sources: Reuters
Vietjet and COMAC: The End of a Six-Month Experiment
The Wet-Lease Arrangement: A Closer Look
Logistics and Strategy: The Deciding Factors
A Setback for Ambition: The Broader Implications
FAQ
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.
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.
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.
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.
Photo Credit: Reuters
Commercial Aviation
flyadeal Receives 45th Aircraft and Launches Birds of the Kingdom Naming
flyadeal adds its 45th aircraft, an Airbus A320neo named Al-Saqr, and introduces a new bird-themed naming strategy aligned with Saudi heritage.
Saudi Arabia’s low-cost carrier, flyadeal, has officially taken delivery of its first new aircraft of 2026, an Airbus A320neo named Al-Saqr (The Falcon). This latest arrival marks a significant milestone for the airline, bringing its total fleet to 45 all-narrowbody passenger jets. The aircraft arrived in Jeddah directly from the Airbus assembly plant in Toulouse, France.
According to the airline’s announcement, this delivery represents more than just a capacity increase; it signals a strategic shift in the carrier’s branding. Moving away from its tradition of naming aircraft after constellation stars, flyadeal will now name its new narrowbodies after birds found in the Kingdom. The choice of Al-Saqr, the national bird of Saudi Arabia, underscores the airline’s alignment with national heritage and values of strength and freedom.
The delivery supports flyadeal’s aggressive growth trajectory under Saudi Vision 2030. With a mix of 34 A320neo and 11 A320ceo aircraft now in operation, the Airlines is positioning itself to expand its domestic and international footprint significantly over the coming years.
The newly delivered A320neo is the 34th of its variant in the flyadeal fleet. The “neo” (New Engine Option) models are pivotal to the airline’s low-cost business model. Powered by CFM International LEAP-1A engines, these aircraft offer approximately 15-20% better fuel efficiency and reduced CO2 emissions compared to previous generations, according to industry data regarding this engine type.
Steven Greenway, flyadeal Chief Executive Officer, highlighted the significance of this Delivery in a company statement:
“It’s always a good feeling celebrating a first. Our latest aircraft is the start of flyadeal’s push towards the half-century fleet mark, a significant milestone for such a young airline. As more aircraft are delivered to flyadeal this year, we’re able to increase frequencies on existing routes and deploy on new ones to keep up our growth momentum.”
The aircraft features a spacious cabin with 186 Economy Class seats in a 3-3 configuration. The interior is designed to meet high standards for low-cost travel, including leather seats with custom diamond stitching and “XL” overhead bins to accommodate larger carry-on luggage.
The transition from star-based names to avian names is a calculated branding move. Hazar Hafiz, flyadeal’s Head of Marketing and Customer Experience, explained the reasoning behind the new theme in the press release: “Saudi Arabia is home to more than 500 bird species on one of the world’s most important migration routes, with millions of birds crossing the Kingdom every year. Birds naturally represent movement, travel, and freedom, values that strongly align with our brand. By associating ourselves with this rich and authentic narrative, flyadeal creates a deeper emotional link with our customers.”
flyadeal’s expansion is not limited to hardware. The airline is actively growing its human capital to support its increasing fleet. Captain Abdulaziz Bahri, flyadeal Chief Operating Officer, noted that the carrier is continuing to hire more pilots, including graduates from the government-backed “Waed” scholarship program.
“Being an all-A320 operator, flyadeal has shown confidence in this wonderful aircraft that supports our flying requirements domestically, regionally and beyond with low cost and fuel efficiency, fulfilling our key operational needs.”
Data indicates that the airline plans to add approximately four new aircraft in total during 2026, aiming to end the year with 48 jets. This growth supports recent network expansions, including the opening of a new operational base in Madinah earlier in 2026, which has facilitated new routes to destinations such as Istanbul, Abha, and Tabuk.
The decision to rebrand the fleet naming convention to “Birds of the Kingdom” reflects a broader trend among Saudi companies to align closely with national identity as part of Vision 2030. By choosing the Falcon, a symbol deeply embedded in Saudi culture, flyadeal is reinforcing its status as a homegrown success story.
Furthermore, the steady intake of A320neo aircraft suggests flyadeal is prioritizing operational efficiency to maintain its low-cost base while preparing for longer sectors. With plans to enter the Indian market in 2026 and a long-term goal of tripling its network to over 100 destinations by 2030, the fuel efficiency of the neo fleet will be critical in maintaining competitive ticket prices on longer international routes.
What is the new aircraft named? How large is flyadeal’s fleet now? What is the significance of the new naming convention? What are flyadeal’s future growth plans?
flyadeal Receives 45th Aircraft, Debuts New “Birds of the Kingdom” Naming Strategy
Fleet Expansion and Operational Capabilities
A Shift in Identity
Strategic Growth and Workforce Development
AirPro News Analysis
Frequently Asked Questions
The new Airbus A320neo is named Al-Saqr, which means “The Falcon” in Arabic.
The fleet consists of 45 aircraft in total: 34 Airbus A320neo and 11 Airbus A320ceo models.
The airline is moving from naming aircraft after stars to naming them after birds found in Saudi Arabia to symbolize movement, freedom, and national heritage.
The airline aims to reach a fleet size of over 100 aircraft and serve more than 100 destinations by 2030.Sources
Photo Credit: flyadeal
Airlines Strategy
Lufthansa Group and Air India Sign Joint Business Agreement in 2026
Lufthansa Group and Air India sign a Joint Business Agreement to improve connectivity and unify operations following the India-EU Free Trade Deal.
This article is based on an official press release from the Lufthansa Group.
On February 17, 2026, the Lufthansa Group and Air India formally signed a Memorandum of Understanding (MoU) to establish a comprehensive Joint Business Agreement (JBA). The agreement, signed by Lufthansa Group CEO Carsten Spohr and Air India CEO Campbell Wilson, signals a major shift in the India-Europe aviation market. This strategic deepening of ties between the two Star Alliance partners aims to integrate their commercial operations, moving beyond traditional codesharing to offer a unified travel experience.
According to the official announcement, the partnership is explicitly designed to capitalize on the economic momentum generated by the India-EU Free Trade Agreement (FTA), which was finalized in January 2026. By aligning their networks, the carriers intend to improve connectivity between India and the Lufthansa Group’s primary markets in Germany, Austria, Switzerland, Belgium, and Italy.
The proposed JBA covers a wide array of carriers under both parent companies. On the Indian side, the agreement includes Air India and its low-cost subsidiary, Air India Express. The European contingent comprises Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways.
Under the terms of the MoU, the airlines plan to coordinate flight schedules to minimize connection times and implement joint sales, marketing, and pricing strategies on key routes. The goal is to create a “metal-neutral” environment where passengers can book a single ticket across multiple carriers with consistent service standards.
“The partners aim to offer more connected and consistent experiences on a single ticket,” the Lufthansa Group stated in the press release regarding the operational goals of the agreement.
The timing of this agreement is closely linked to the ratification of the India-EU Free Trade Agreement earlier this year. Industry data indicates that the FTA has established the world’s largest free trade area, covering a bilateral goods trade volume of approximately €180 billion annually. The elimination of tariffs on aerospace parts and the expected surge in business travel have created a favorable environment for expanding capacity.
According to market reports, India is currently the fastest-growing aviation market globally and has become the second most important long-haul market for the Lufthansa Group, trailing only the United States. The partnership builds on a history of cooperation dating back to 2004, which accelerated significantly after Air India joined the Star Alliance in 2014.
While the press release highlights economic cooperation, AirPro News analyzes this move as a direct strategic counterweight to the “Middle East 3” (ME3) carriers, Emirates, Qatar Airways, and Etihad. For decades, these Gulf carriers have captured a significant majority of traffic on the India-Europe corridor by routing passengers through hubs in Dubai, Doha, and Abu Dhabi. By forming a Joint Business Agreement, Lufthansa and Air India can effectively operate as a single entity. This allows them to optimize departure times, scheduling one morning flight and one evening flight rather than competing for the same slot, thereby offering a compelling direct alternative to the stopover models of Gulf competitors. With the India-Europe corridor seeing over 10 million annual passengers, reclaiming market share from third-country hubs is a primary commercial imperative.
A critical component of the JBA’s success relies on aligning the passenger experience, an area where Air India has historically lagged behind its European partners. However, under Tata Group ownership, Air India has aggressively modernized its fleet.
Recent developments cited in industry reports include:
While the MoU marks a significant milestone, the implementation of a Joint Business Agreement is subject to rigorous regulatory review. The airlines must secure anti-trust immunity and clearance from key bodies, including the Competition Commission of India (CCI) and the European Commission. Regulators typically scrutinize such agreements to ensure they do not create monopolies on specific non-stop routes, such as Frankfurt-Delhi.
What is a Joint Business Agreement (JBA)? When will the new joint operations begin? Does this affect frequent flyer programs?
Lufthansa Group and Air India Sign MoU for Joint Business Agreement Following EU-India Free Trade Deal
Scope of the Partnership
Strategic Context: The Free Trade Catalyst
AirPro News Analysis: Countering Gulf Dominance
Fleet Modernization and Product Alignment
Regulatory Outlook
Frequently Asked Questions
A JBA is a commercial arrangement where airlines coordinate schedules, pricing, and revenue sharing, effectively operating as a single entity on specific routes.
While the MoU was signed on February 17, 2026, full implementation depends on regulatory approvals from Indian and European authorities.
Both airlines are already members of the Star Alliance, allowing for reciprocal earning and redemption. The JBA is expected to further enhance loyalty benefits and availability.
Sources
Photo Credit: Lufthansa Group
Aircraft Orders & Deliveries
BOC Aviation Renews $3.5B Credit Facility with Bank of China to 2031
BOC Aviation extends its $3.5 billion revolving credit facility with Bank of China to 2031, securing liquidity for aircraft investments and growth.
This article is based on an official press release from BOC Aviation.
BOC Aviation Limited has officially announced the renewal of its US$3.5 billion unsecured revolving credit facility (RCF) with its majority shareholder, the Bank of China. Confirmed on February 16, 2026, the transaction extends the maturity of the facility to February 13, 2031, providing the Singapore-based lessor with a five-year horizon of secured liquidity.
The renewal maintains the facility’s total value at the same level established during its 2020 expansion. According to the company, this move is designed to bolster financial flexibility and ensure consistent access to capital for aircraft investments, regardless of broader market cycles. The agreement underscores the continued financial backing BOC Aviation receives from its parent company, a critical differentiator in the competitive aircraft leasing sector.
The renewed agreement is an unsecured revolving credit facility, a structure that allows BOC Aviation to draw down, repay, and re-borrow funds as needed up to the US$3.5 billion limit. By extending the maturity date to 2031, the lessor secures a long-term funding runway to support its growth strategy.
Steven Townend, Chief Executive Officer and Managing Director of BOC Aviation, emphasized the strategic importance of this renewal in a statement released by the company. He highlighted the alignment between the lessor and its parent organization.
“This RCF extension reflects the confidence that Bank of China has in the future of our business and underscores the depth of our relationship with our major shareholder. The facility strengthens our financial flexibility and ensures our access to ample liquidity to support our aircraft investments across the cycle.”
, Steven Townend, CEO of BOC Aviation
The credit facility has grown significantly alongside BOC Aviation’s fleet over the last two decades. The company provided a timeline of the facility’s evolution, illustrating the increasing scale of support from the Bank of China:
This liquidity event occurs against a backdrop of significant operational activity for the lessor. As of December 31, 2025, BOC Aviation reported a total portfolio of 815 aircraft and engines, including owned, managed, and ordered assets. The company’s reach extends to 87 airlines across 46 countries and regions.
Data released regarding the full year 2025 indicates robust activity, with the company taking delivery of 51 new aircraft and executing a record 333 transactions. These transactions included 160 aircraft purchase commitments, signaling an aggressive growth posture that necessitates substantial available capital. In addition to the RCF renewal, BOC Aviation has recently moved to diversify its funding sources. In early February 2026, the company successfully priced US$500 million in senior unsecured notes. The combination of these notes and the renewed RCF provides a multi-layered capital structure to fund future acquisitions.
The renewal of this facility highlights a structural advantage for BOC Aviation compared to independent lessors. In a high-interest-rate environment or during periods of market volatility, the cost of funds is a primary determinant of a lessor’s profitability. The direct backing of a major state-owned bank allows BOC Aviation to secure large-scale liquidity that might be more expensive or difficult to arrange for competitors without similar parentage.
Furthermore, with supply chain constraints continuing to affect Airbus and Boeing deliveries in 2026, lessors with ready cash are better positioned to execute sale-and-leaseback (SLB) transactions with airlines desperate for liquidity. By locking in US$3.5 billion in revolving credit through 2031, BOC Aviation is effectively positioning itself to act as a liquidity provider to the airline industry, potentially acquiring assets at attractive valuations while manufacturers struggle to meet delivery targets.
BOC Aviation Secures US$3.5 Billion Facility Renewal with Bank of China
Transaction Details and Management Commentary
Historical Evolution of the Facility
Operational Context and Financial Position
AirPro News Analysis
Sources
Photo Credit: BOC Aviation
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