Commercial Aviation
Brunei Approves Chinese COMAC Jets Boosting Southeast Asia Aviation Market
Brunei’s aviation authority approves Chinese COMAC jets, enabling GallopAir’s $2B order and advancing China’s aviation industry international reach.
In the high-stakes world of commercial aviation, the sky has long been dominated by two giants: Boeing and Airbus. For decades, this duopoly has dictated the market, setting the standards for aircraft manufacturing, safety, and certification. However, the landscape is gradually shifting. China, a powerhouse in global manufacturing and a massive aviation market in its own right, has been methodically working to carve out its own space with its state-owned Commercial Aircraft Corporation of China (COMAC).
A significant step in this journey occurred on October 23, 2025, when Brunei’s Department of Civil Aviation (DCA) made a pivotal regulatory change. The small Southeast Asian nation officially amended its rules to recognize the Civil Aviation Authority of China (CAAC) as an approved foreign airworthiness authority. This decision, while seemingly a minor administrative update, carries substantial weight. It effectively opens Brunei’s skies to Chinese-manufactured aircraft, providing COMAC with a crucial validation outside its home turf and signaling a potential shift in regional aviation dynamics.
This development is not just about one country’s regulatory update; it’s a clear indicator of China’s broader strategy to establish a parallel aviation ecosystem. By securing approvals from foreign regulators, China aims to build international confidence in its aircraft, particularly the C919 narrow-body jet, designed to compete directly with the Boeing 737 and Airbus A320. Brunei’s move serves as a key building block in this long-term ambition, potentially influencing other nations to follow suit.
The primary driver behind Brunei’s regulatory shift is GallopAir, a new Brunei-based airline with significant backing from Chinese investors, including the Shaanxi Tianju Investment Group. GallopAir’s business model is intrinsically linked to COMAC’s success, as the startup has placed a massive US$2 billion order for 30 Chinese-made aircraft. This landmark deal, signed in September 2023, includes 15 C909 regional jets (formerly known as the ARJ21) and 15 C919 narrow-body airliners.
This order is particularly noteworthy because it marks the first international purchase of the C919, COMAC’s flagship aircraft. Until this point, the C919, which had its first commercial flight in May 2023, had only been operated by Chinese airlines. GallopAir’s commitment represents a vote of confidence and provides COMAC with a vital international case study. The airline’s strategy is to enhance connectivity within the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA), a region with growing demand for air travel.
Before Brunei’s recent policy change, its aviation regulations only recognized certifications from the United States, Canada, Europe, and Brazil, which would have prevented GallopAir from operating its fleet of COMAC jets. The amendment to include the CAAC was therefore a necessary and direct facilitator of the airline’s operational plans. This symbiotic relationship between a new, ambitious airline and a planemaker seeking global reach illustrates a key part of China’s strategy: leveraging strategic international partnerships to expand its aviation footprint.
The US$2 billion deal between GallopAir and COMAC is the first international order for the C919, a direct competitor to the Boeing 737 and Airbus A320.
Brunei’s approval is a strategic victory for COMAC, but it’s just one move in a much larger and more complex game. The ultimate goal for China is to position COMAC as a viable third player in the global commercial aircraft market, breaking the long-standing Boeing-Airbus duopoly. This “triopoly” is something both Western manufacturers have acknowledged as a long-term possibility. China is employing a multi-pronged approach to achieve this, starting with its vast domestic market to build operational history and credibility for its aircraft.
The next phase involves using state-backed diplomacy and financing to open overseas markets, particularly in developing nations and countries politically aligned with China. Brunei’s decision, along with a similar move by Vietnam to add the CAAC to its list of approved regulators, suggests this strategy is gaining traction. Each foreign regulatory approval helps build a case for wider acceptance and chips away at the perception that COMAC aircraft are only suitable for the protected Chinese market. p>Despite this progress, significant hurdles remain. The most formidable barrier is the lack of type certification from the U.S. FAA and the European Union Aviation Safety Agency (EASA). These certifications are the gold standard in the industry and are essential for accessing Western markets. The EASA has indicated that the certification process for the C919 could take several more years, potentially pushing any approval to 2028 or beyond. Furthermore, COMAC remains reliant on Western suppliers for critical components like engines and avionics and must build a global maintenance, repair, and overhaul (MRO) network to support international airlines.
Brunei’s decision to allow the operation of Chinese-made jets is more than a local regulatory update; it is a calculated step that provides COMAC with a crucial international platform. By facilitating GallopAir’s multi-billion-dollar order, Brunei has become an important early adopter of China’s aviation technology, setting a precedent that other nations in the region and beyond may watch closely. This development is a clear win for COMAC, validating its aircraft outside of China and supporting its ambition to become a global aviation player.
However, the path to disrupting the established duopoly is long and fraught with challenges. While COMAC has secured a foothold in Southeast Asia, the lack of FAA and EASA certification remains a major obstacle to widespread international adoption. The true test will be whether COMAC can build a comprehensive global support network and convince major international airlines of its long-term value and reliability. For now, the industry is watching to see if this small step in Brunei will translate into a giant leap for China’s aviation aspirations.
Question: What is COMAC? Question: Why is Brunei’s approval of COMAC jets significant? Question: What are the main challenges COMAC still faces?
Brunei Greenlights Chinese-Made Jets, Giving COMAC a Foothold in Southeast Asia
The GallopAir Catalyst: A US$2 Billion Bet on COMAC
The Global Chessboard: COMAC’s Ambitions and Hurdles
Conclusion: A New Player on the Tarmac
FAQ
Answer: The Commercial Aircraft Corporation of China (COMAC) is a state-owned Chinese aerospace manufacturer established to design and build large passenger aircraft, reducing China’s dependency on Boeing and Airbus.
Answer: It marks a key international validation for COMAC’s aircraft. It allows a non-Chinese airline, GallopAir, to operate a fleet of C919 and C909 jets, providing COMAC with its first international C919 customer and a strategic foothold in the Southeast Asian market.
Answer: COMAC’s biggest challenges are securing type certification from the U.S. Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), which are required to operate in most Western markets. The company also needs to build a global maintenance and support network and reduce its reliance on Western-made components for its aircraft.
Sources
Photo Credit: Reuters
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
Commercial Aviation
American Airlines Named Official Airline of Women in Aviation 2026 Conference
American Airlines becomes the first Official Airline of the 2026 Women in Aviation International conference, funding scholarships and sponsoring key events.
This article is based on an official press release from American Airlines.
As American Airlines prepares to celebrate its centennial anniversary in 2026, the carrier has announced a historic partnership with Women in Aviation International (WAI). According to an official announcement from the company, American Airlines has been named the first-ever “Official Airline” of the WAI annual conference.
The 37th Annual WAI Conference is scheduled to take place from March 19–21, 2026, at the Gaylord Texan Resort & Convention Center in Grapevine, Texas. The location is strategically significant, situated near the airline’s global headquarters in Fort Worth. This collaboration marks a shift in the airline’s engagement with the nonprofit, moving from general support to a titular sponsorship role during its 100th year of operation.
The partnership is framed as a central component of American Airlines’ 100th-anniversary celebrations. While the airline reflects on a century of connecting locations, this initiative highlights a forward-looking focus on workforce development and inclusion. By securing the “Official Airline” title, American aims to leverage its “hometown advantage” in the Dallas-Fort Worth metroplex to recruit and inspire the next generation of aviation professionals.
Cole Brown, Chief People Officer at American Airlines, emphasized the strategic importance of this alliance in a statement released by the company:
“At American, we believe building a culture where women and girls are represented, empowered and able to thrive as leaders is vital to the future of our industry. As we celebrate our centennial year, we’re proud to partner with WAI… to honor our legacy of innovation and reinforce our commitment to developing the future of the aviation workforce.”
Beyond the titular sponsorship, the press release details specific financial commitments aimed at reducing barriers to entry for women in aviation. American Airlines confirmed it will fund a total of eight scholarships for conference attendees. These awards are designed to address specific technical shortages in the industry.
According to the partnership details, the scholarships include:
In addition to direct financial aid, the airline will sponsor key events during the conference:
While the partnership represents a significant public relations milestone, it also highlights the ongoing disparity in gender representation within the cockpit. Industry data indicates that the global average for female airline pilots remains between 4% and 6%. American Airlines currently reports that approximately 5% of its pilots are women.
Comparatively, United Airlines leads major U.S. carriers with approximately 7.4% female pilot representation, while Delta Air Lines sits at roughly 5.3% and Southwest Airlines at 4.1%. The scholarships funded by this partnership target the “pipeline gap.” While women make up less than 20% of the total aviation workforce, they currently represent approximately 15% of student pilots. Initiatives like the WAI conference are critical for converting these students into career professionals. Lynda Coffman, CEO of Women in Aviation International, noted the significance of the airline’s involvement:
“As the Official Airline of this year’s annual conference, American has an important role in welcoming our estimated 5,000 WAI2026 attendees to the Dallas-Fort Worth metroplex.”
Historically, American Airlines has played a role in breaking gender barriers; in 1973, it became the first major U.S. commercial carrier to hire a female pilot, Bonnie Tiburzi Caputo. This new partnership appears designed to reinforce that legacy as the carrier enters its second century.
American Airlines Becomes First “Official Airline” of Women in Aviation International Conference
A Centennial Commitment to Diversity
Scholarships and Career Initiatives
Financial Support Breakdown
Event Sponsorships
AirPro News Analysis: The Industry Context
Frequently Asked Questions
Sources
Photo Credit: American Airlines
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