HANOI (Reuters) – China’s push to enter foreign aviation markets with Comac jets has intensified with the country’s effort to persuade Vietnam to authorize the use of its planes, according to two sources with knowledge of the negotiations and documents .
Comac’s actions in Vietnam demonstrate how the state-owned company last year embarked on a more deliberate marketing approach to regulators and airlines as it seeks to compete internationally with major Western plane makers Airbus, Boeing and Embraer. .
After months of negotiations, Vietnam’s main private airline, VietJet, was due to begin on January 15 the short-term lease of two C909 regional jets operated by crew from China’s Chengdu Airlines, according to documents seen by Reuters that provide information about your strategy.
However, Vietnam’s aviation regulator has not yet cleared the deal as it is cautious about giving the green light to a plane currently only certified by China and Indonesia, the two sources and a third said.
The C909, with capacity for up to 90 passengers and known until November as the ARJ21, was China’s first jet-engine plane to reach commercial production and entered service in 2016, with around 160 aircraft delivered to date.
The regional jet is not as well-known as Comac’s more advanced C919 single-aisle plane, but it will allow the planemaker to establish itself in one of the world’s fastest-growing aviation markets and increase its visibility outside China before the increased production of the C919. This would also send a message to rivals.
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VietJet had been in talks with a foreign leasing company for months to lease two Embraer E190 regional jets, according to separate sources familiar with the discussions, with one adding that pilots were in the process of being hired for those planes.
But negotiations collapsed late last year, Vietnamese media reported. VietJet intended to use Embraer or Comac planes to connect Vietnam’s major cities to the Con Dao tourist archipelago, where larger jets cannot land.
The two sources said the Chinese offer is on very attractive financial terms that, according to one of the sources, are “too good to resist.”
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VietJet, one of Asia’s largest low-cost airlines with a fleet of around 100 Airbus jets and around 200 Boeing 737 MAX on order, declined to comment.
Comac, Vietnam’s civil aviation authority and Chengdu Airlines did not respond to requests for comment.
Global Plans
The short-term lease of two Comac la VietJet jets is a small deal that, according to industry sources, does not make commercial sense for a large low-cost airline.
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However, after that, VietJet will look to introduce more planes, possibly including routes to China, according to a VietJet document dated December 17.
VietJet’s talks with Comac have included the ultimate goal of using C919s in the future, according to another source familiar with the matter.
Currently, the C909 and C919 are only operated by Chinese airlines, with the exception of one Indonesian airline that operates the C909.
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Both planes have solid safety records with no known accidents, but they have far fewer flight hours compared to rival models and have not been certified by Western regulatory bodies.
Comac displayed its planes last February for the first time outside of China in Singapore, including a stop in Vietnam, marking a change in approach from previously limited public engagement outside of China.
Comac has been in contact with airlines, regulators and aerospace companies in Asia and elsewhere, and said this month it wants the C919 flying to Southeast Asia by next year.
Around 16 C919s fly with Chinese airlines and Comac plans to produce 30 units this year.
Comac is seeking European Union certification for C919. The lack of certification of its planes by regulatory bodies outside mainland China remains a crucial obstacle to the company’s acceptance by foreign airlines.
Vietnam’s regulator wants to be sure that any authorization will not undermine compliance with foreign aviation regulators, including the US, the first two sources said.
