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COMAC jets for Vietnam reveal China's push for global market

China's drive to burglarize foreign aviation markets with its homegrown COMAC jets has intensified, with a push to persuade Vietnam to authorise its airplanes in the nation, according to two people with understanding of the talks and files.

COMAC's actions in Vietnam demonstrate how the state-owned firm has in the past year started a more deliberate marketing method to regulators and airlines as it seeks to contend worldwide with leading Western planemakers Airbus and Boeing.

After months of talks, Vietnam's leading personal airline VietJet was supposed to start on Jan. 15 the short-term lease for a domestic path of two C909 local jets operated by team from China's Chengdu Airlines, according to documents seen by Reuters that provide insight into its technique.

But Vietnam's air travel regulator has yet to authorise the offer, cautious about greenlighting an aircraft currently certified just by China and Indonesia, the two individuals and a. 3rd person stated.

The lease had been reported by Vietnamese media, nevertheless the. approval hold-up, VietJet's longer-term strategy for COMAC jets. and the planemaker's efforts to win regulatory approval,. consisting of offering favourable financial terms and training, have. not been previously reported.

The as much as 90-seat C909, till November referred to as the ARJ21,. was China's first jet engine-powered aircraft to reach business. production and went into service in 2016, with around 160. delivered up until now.

The regional jet is not as high-profile as COMAC's more. advanced narrowbody C919 airplane, however it would allow the. planemaker to acquire a grip in one of the world's. fastest-growing aviation markets and improve its presence. outside China ahead of a C919 production ramp-up.

It would likewise send out a message to competitors.

VietJet had been speaking with a foreign lessor for months to. lease 2 E190 local jets constructed by Brazil's Embraer. , the top international maker of 90-seat jets, separate. sources acquainted with the conversations said, with one adding. pilots had actually been in the process of being hired for those aircrafts.

But the talks collapsed late last year, Vietnamese media. reported. VietJet intended to use either the Embraer or COMAC. aircrafts to connect Vietnam's main cities to the traveler. archipelago of Con Dao, where bigger jets can not land.

The 2 individuals with understanding of VietJet's talks with COMAC. said the Chinese offer was under extremely appealing monetary terms. that a person of individuals said were too good to withstand.

The people decreased to be called because the talks were not. public.

VietJet, one of Asia's largest low-priced carriers with a. fleet of around 100 Airplane jets and around 200 Boeing 737 MAX. jets on order, declined to comment.

COMAC, Vietnam's civil aviation authority and Chengdu. Airlines did not reply to requests for remark.

BEAUTY OFFENSIVE

China and Vietnam have deep economic ties and in recent. months have actually started cooperation in sectors such as defence. and transportation facilities that had actually previously been seen as. non-starters due to a history of conflict in between the. communist-run neighbours that still sometimes clash over. South China Sea limits.

As it ended up being clear VietJet would not get a regulatory. nod in time to start the C909 lease last week and benefit from. the hectic Lunar New Year travel period beginning next week,. Chinese authorities launched an obvious charm offensive.

COMAC Board Director Tan Wangeng went to Hanoi last. Wednesday and China's President Xi Jinping had a call with. Vietnam's leader To Lam the same day, in which he prompted the. nations to step up connection, Chinese state media. reported.

Regulatory and VietJet personnel were arranged to be at COMAC's. Shanghai facilities from Jan. 14 for a 10-day training on C909. standards, operations and maintenance, VietJet documents reveal.

It is unclear when Vietnam could authorise the offer, but. soon after the Xi-Lam call, Vietnam's government stated. openly it was working to eliminate regulative obstacles to enable. COMAC aircraft to run in the country.

Rob Morris, international head of consultancy at Cirium, said the. renting deal might not require a complete certification review of the. C909 jets by Vietnam's regulator.

For this reason, I think this agreement can potentially be made. rapidly, he said.

WORLDWIDE PREPARES

VietJet's short-term lease of 2 COMAC jets is a small deal. that industry sources said does not make conventional industrial. sense for a big low-priced airline company.

However after that, VietJet would eventually look to present. more aircrafts, including possibly for routes to China, a VietJet. file dated Dec. 17 stated.

VietJet's talks with COMAC included the supreme objective. of using C919s in the future, according to a different source. knowledgeable about the matter.

The C909 and C919 are currently flown only by Chinese. airlines with the exception of one Indonesian carrier operating. the C909.

Both planes have solid security records without any known. mishaps, however they have far fewer flying hours compared to. competing models and have actually not been licensed by Western regulators.

COMAC displayed its aircrafts last February for the very first. time outside China in Singapore, consisting of a stop in Vietnam,. marking an altered approach from formerly limited public. engagement outside China.

In January, Brunei-based start-up GallopAir chartered a China. Southern Airlines C909 to Brunei as a stop-gap. procedure while the country's regulator thinks about certifying the. airplane, CEO Cham Chi said.

GallopAir in 2023 purchased 15 C909s and 15 C919s, in the. initially non-Chinese C919 order.

COMAC has actually been connecting to airline companies, regulators and. aerospace firms around Asia and beyond, and stated this month it. desires the C919 flying to Southeast Asia by next year.

Around 16 C919s fly with Chinese airlines, while COMAC aims. to produce 30 this year.

COMAC is pursuing EU certification for the C919, however the. lack of accreditation for its aircrafts by regulators outside. mainland China stays an important difficulty for COMAC to get. acceptance by foreign airline companies.

Vietnam's regulator wants to ensure any authorisations. would not jeopardise compliance with foreign aviation. regulators, including the U.S., the very first 2 people said.

(source: Reuters)