China’s Comac Wins $2.3 Billion Regional Jet Order From Lessor

China-made Regional Jet ARJ21 Is Delivered To Domestic Airlines

The ARJ21 jet in Chengdu Airlines livery.

Photographer: VCG via Getty Images
  • CALC is buying up to 60 ARJ21 regional jet from Comac
  • Jet will be flying with an Indonesian airline, CALC says

Commercial Aircraft Corp. of China Ltd., the national planemaker, won an order from a local lessor for as many as 60 ARJ21 regional jets in a deal that may be valued at $2.3 billion in list prices.

China Aircraft Leasing Group Holdings Ltd., a lessor that’s listed in Hong Kong, agreed to purchase the aircraft, which will operate in Indonesia, the plane-leasing company said in a statement to the stock exchange late Monday. China Aircraft Leasing didn’t identify the Indonesian airline.

The order win is key for Commercial Aircraft Corp., popularly known as Comac, after the Advanced Regional Jet made its first commercial flight last month. Development of the 90-seater plane -- the nation’s first passenger jet -- was plagued by delays in getting certification. Shanghai-based Comac is also building the larger C919 single-aisle jet to break the stranglehold of Airbus Group SE and Boeing Co. in the market for planes with more than 150 seats.

Friedmann Pacific Asset Management Ltd. -- the second-largest shareholder in the lessor -- will invest in an aircraft operator in Indonesia as part of the deal, China Aircraft Leasing said in the statement.

The ARJ21, which competes with Bombardier Inc. and Embraer SA aircraft, has General Electric Co. engines and a maximum range of 2,225 kilometers (1,400 miles) for the standard model, according to Comac’s website.

Farnborough International Airshow 2016: Full Coverage

Before it's here, it's on the Bloomberg Terminal. LEARN MORE