China’s C919 Jet Commands Higher Price in Latest Deal as Boeing Returns to Market

China’s domestically developed C919 airliner recently secured a higher price in a deal with Air China, marking a significant move for manufacturer Commercial Aircraft Corporation of China (Comac). This development comes as Boeing gains ground in aircraft deliveries to Chinese carriers.

The price increase for the C919 was revealed in the recent Air China deal, the country’s largest carrier by fleet size, which includes the purchase of six C919 planes and 11 smaller ARJ21 regional jets set for delivery between 2024 and 2025. While Air China disclosed that Comac charged US$108 million for each C919 and US$38 million for the ARJ21, both parties agreed to prices “lower than the list prices.”

Comac’s latest C919 price quote stands at US$108 million, up from the 2022 level of US$99 million seen in a deal with China Eastern. This new list price is in proximity to Airbus’s quote of US$105-136 million for its A320neo series in 2020.

At a recent Civil Aviation Administration of China meeting, Comac’s General Manager Zhou Xinmin appealed for increased government support, including incentives to airlines and airports, to bolster the market share of domestically manufactured aircraft. Comac had reported 1,061 orders for the C919 by September.

The C919, designed for narrowbody operations, aims to challenge the duopoly of the Boeing 737 and Airbus A320, particularly in the growing Chinese aviation market. Comac is also working on a high-altitude version of the jet.

Domestic aircraft manufacturers have responded to Beijing’s self-reliance calls by launching the C919 while simultaneously advancing plans for a widebody aircraft. The C919 can carry up to 192 passengers and has a maximum range of 5,555km (3,452 miles). It made its inaugural commercial flight from Shanghai to Beijing in May, with China Eastern being its launch customer and the largest buyer.

However, Boeing has intensified competition by delivering its first widebody 787 Dreamliner to a Chinese carrier since 2019. Additionally, the Boeing 737 MAX is expected to resume deliveries following clearance from Chinese regulators earlier this month. Boeing forecasts that China will require 8,560 new passenger jets by 2042, contributing to the country’s commercial fleet nearly doubling to around 9,600 jets over the next two decades, accounting for one-fifth of global plane deliveries during this period.

Sources: AirGuide Business airguide.info, bing.com, scmp.com, apple.news