Brunei’s Gallop Air Faces Potential Delay in 2024 Launch Due to Regulatory Hurdles

Share

Brunei-based startup Gallop Air acknowledges the possibility of a delay in its planned launch in the latter half of 2024, citing the need to secure regulatory approval, aircraft, and financing. CEO Cham Chi revealed in an interview with BizBrunei that the airline is currently navigating the initial stage of a five-stage approval process to obtain an air operator’s certificate (AOC) from Brunei’s Department of Civil Aviation.

Cham expressed optimism about progressing to the next stage by the end of the year but highlighted the importance of adhering to government regulations. The low-cost carrier, 95% owned by Singapore-based GallopAir Private Limited, faces additional regulatory requirements, including approval from China’s Civil Aviation Administration (CAAC), as China is the anticipated first destination for Gallop Air. However, potential conditions imposed by the CAAC, given Gallop’s startup status, may influence the choice of launch country.

“We still want to start commercial flights in Q3 next year, but we need to follow all the government regulations,” Cham emphasized.

Gallop Air, backed by China’s Shaanxi Tianju Investment Group, signed a letter of intent (LOI) with COMAC in September 2023 for thirty aircraft, a mix of ARJ21-700 and C919 types. The order, yet to be finalized, is expected to involve the delivery of three to five aircraft over seven years, evenly split between the ARJ21 and C919. While the initial network will align with the capabilities of the ARJ21, deliveries of the C919 are projected to begin in about five years.

Cham noted that Gallop Air’s successful launch would enhance connectivity between Brunei and China, strengthening ties between the two nations. Despite the potential delay, the airline remains committed to securing support and investment from the Brunei government, investors, and local entities.

Gallop Air’s entry into the aviation market aims to improve connectivity in and out of Brunei, contributing to the nation’s economic development and fostering closer relations with China—a key trading partner and significant source of direct foreign investment for Brunei.

Share