COMAC’s C919 in Southeast Asia: Needs more than price to take flight

China is eyeing the fast-growing Southeast Asia aviation market for its homegrown airliner, the C919, to break the Airbus-Boeing duopoly. But success, writes Tang Meng Kit, will depend on winning approval from cautious regulators and airlines.

12 March 2025

Insights

Diplomacy

Asia (general)

China’s state-owned aerospace firm COMAC is pitching its new C919 commercial airliners as a budget-friendly alternative to aircraft sold by the Airbus-Boeing duopoly. However, its success hinges on more than price. For airlines in Southeast Asia to adopt this aircraft, they will need to address concerns about certification, safety, and operational reliability.   

COMAC’s push into Southeast Asia is not just a business decision; it also reflects broader US-China geopolitical rivalry. Aviation is a strategic sector that is tied to national security, economic influence and technological leadership. As China strengthened its aviation industry, the US imposed technology restrictions to slow its progress. This may escalate if COMAC gains more global attention.

Airlines prioritise cost and efficiency, but they are influenced by government entities in Southeast Asia that shape aviation policies, grant approvals and provide financing. Vietnam, for example, is reviewing existing rules to remove regulatory hurdles to enable COMAC aircraft to operate in the country. National security concerns and territorial disputes in the South China Sea may also impact regulatory perspectives and airlines’ decisions regarding the C919.

Southeast Asian airlines, especially budget carriers, operate in a price-sensitive market where minimising costs is essential. The C919 is an attractive option for fleet expansion due to its lower price compared to rivals from Airbus and Boeing, enabling growth without significant capital investment. One report estimated the C919 to be in the range of US$90-100 million. This is lower than US$111 million for the Airbus A320neo and US$121 million for the Boeing 737 MAX. That said, the price for the C919 is steeper than the US$50 million estimated previously.

Additionally, COMAC may offer appealing financing and leasing options through Chinese state-owned banks, which could benefit financially-strained airlines post-Covid-19. If the C919 can demonstrate lower maintenance and fuel costs, it could further reduce long-term operating expenses.

However, airlines must weigh initial savings against potential long-term issues like maintenance, regulatory compliance and passenger perceptions. Many prioritise lifecycle costs over upfront prices, indicating that a cheaper aircraft may not be the best financial choice if it lacks a proven reliability record.

The C919 may face restrictions on international routes and scepticism from airlines accustomed to Western standards. If COMAC does secure the said certifications, proves its reliability and builds strong after-sales support, the C919 could become a viable competitor.

While the C919’s lower price is appealing, airlines will remain cautious unless COMAC resolves regulatory hurdles, demonstrates consistent reliability and ensures a dependable maintenance infrastructure.

COMAC has approval from the Civil Aviation Administration of China (CAAC), but it still needs endorsements from major authorities like the US Federal Aviation Administration (FAA) and the EU Aviation Safety Agency (EASA). These certifications are crucial for global safety and reliability standards.

Without these certifications, Southeast Asian airlines may hesitate to adopt the aircraft, especially for routes requiring compliance with international regulations. Many aviation insurers and financial institutions favour planes with Western certifications. If COMAC fails to secure these approvals quickly, airlines may opt for Airbus and Boeing despite the C919’s cost advantages.

Additionally, some Southeast Asian countries may delay their own certification approvals for the C919 until it gains recognition from the FAA or EASA. Airlines could also struggle with training and maintenance integration without established certification standards, hindering the aircraft’s market entry and competitiveness.

Airlines also have significant concerns regarding safety and reliability when adopting a new aircraft type. Airbus and Boeing have established reputations, extensive maintenance networks and strong safety records. The C919 is a newer model with limited flight data which complicates long-term performance assessments.

Maintenance infrastructure is crucial. Airbus and Boeing aircraft benefit from a robust network of maintenance, repair, and overhaul (MRO) facilities in Southeast Asia. This ensures quick access to spare parts and skilled labour. In contrast, COMAC lacks a similar global network, potentially causing delays in servicing.

Fleet standardisation is also important in aviation. Many Southeast Asian carriers use both Airbus and Boeing planes, simplifying pilot training and maintenance. The C919 would require additional training and new maintenance procedures, increasing complexity and costs. If not managed well, airlines may view the C919 as a logistical challenge.

The COMAC C919 has potential in Southeast Asia, particularly for budget airlines, thanks to its cost-effectiveness and financing options. While the C919’s lower price is appealing, airlines will remain cautious unless COMAC resolves regulatory hurdles, demonstrates consistent reliability and ensures a dependable maintenance infrastructure. Until then, the jury is out as to whether the C919 will take flight into Southeast Asian skies.

 

Tang Meng Kit is a master’s student in the MSc in International Relations Programme at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore.

 

This article originally appeared on the ISEAS–Yusof Ishak Institute's Fulcrum on 11 March 2025.

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