C919 mega-purchase by China’s flagship airline lifts home-grown jet in competition with Boeing
- Deal adds years of additional business for China’s state-owned manufacturer and may boost investments while further fuelling purchases of the narrowbody plane
- Backlog of orders at Airbus and Boeing could incentivise more airlines to order the C919
Air China’s eye-catching agreement to buy 100 domestically made C919 jets is expected to turn heads overseas and further elevate interest in the relatively new planes as the reputation of rival Boeing has been grounded by safety concerns.
The order size from China’s flagship airline also ensures years of additional business for the C919’s state-owned manufacturer, the Commercial Aircraft Corporation of China (Comac), which could in turn attract investment and more purchases, according to analysts.
Air China, a Beijing-based carrier with 196 flight destinations including more than 60 overseas, said on Friday that it had signed an agreement with Comac to buy the C919s from this year through 2031.
Sweetening the deal, the airline said it had negotiated a “rather large price discount” off the listed total of US$10.8 billion for the order.
The purchase comes as Boeing – which makes up half of the US-European duopoly with Airbus – has been grappling with a series of safety scandals in recent months. In response, the US aviation regulator blocked Boeing from expanding production of its most popular plane, the 737 Max – a single-aisle, narrowbody design like the C919.
“The C919, in my opinion, is a major step forward, not only for China, but it [also] puts another player into the field internationally,” said Hugh Ritchie, CEO of Aviation Analysts International in Australia. “There’s a move away from 737s and Boeing.”
Boeing has warned of possible delays in getting planes to customers as the 108-year-old company ramps up safety checks. And Airbus has postponed some deliveries to as late as 2025 because of supply-chain issues.