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Sources say that Vietjet, Vietnam's budget airline, has stopped operating COMAC aircraft made in China.

Two sources familiar with this matter have confirmed that Vietjet, a Vietnamese low-cost airline, stopped operating its two COMAC C909 planes made in China on October 18, after the six-month contract to lease the planes had expired.

The C909s arrived in Vietnam less that a week after Chinese president Xi Jinping's visit to Hanoi, in April. This launch was seen as a sign of the deepening of strategic and economic ties.

The two sources confirmed that Vietjet had decided not to renew the lease, and did not have any immediate plans to buy aircraft from China’s state-owned planemaker COMAC. Vietjet declined comment while COMAC didn't respond to a comment request.

COMAC HAD MAJORLY BREAKTHROUGH CONTRACT

This lease marked the first time that Chinese aircraft were used on domestic routes within Vietnam, including Hanoi-Con Dao or Ho Chi Minh City - Con Dao. It was also a significant breakthrough for COMAC which had struggled to get its planes used overseas.

According to one source, the termination was due high operating costs associated with foreign crew and maintenance service and regulations under Vietnam's Aviation Law. Vietjet has reported that it had an agreement with Chengdu Airlines to operate the jets using crew from China.

Sources said that the airline could switch to another leasing model in future.

Chengdu Airlines did not reply to an inquiry for comment either.

Both sources confirmed that the COMAC aircraft were in perfect operational condition during their time in Vietnam.

FlightRadar24, a flight tracking website, reports that the aircraft flew their last flights from Con Dao, Vietnam to Hanoi on Friday.

C909 IS CHINA’S FIRST COMMERCIALLY MANUFACTURED JET

The C909 is China's very first jet powered plane, and will enter service in 2016, seating up to 90 people.

COMAC is positioning its C909 Regional Jets in Southeast Asia to gain a foothold on foreign markets. The aircraft have been placed in Indonesia, Vietnam and Laos as well as receiving orders from Air Cambodia, a Brunei airline, and other airlines.

Vietjet has placed large orders for Boeing 737 MAX jets. The company operates a fleet over 100 aircraft, primarily Airbus. (Reporting and editing by Jan Harvey; Additional reporting in Beijing by Sophie Yu; Reporting by Phuong nguyen)

(source: Reuters)