AirAsia Considers COMAC C919 for Regional Growth
AirAsia (AK) is showing keen interest in acquiring the COMAC C919, a Chinese-manufactured passenger aircraft, as part of its strategic expansion in Southeast Asia. This development highlights AirAsia’s intent to enhance connectivity between Malaysia (KUL) and China (PEK), two of the most rapidly growing aviation markets globally. During the Belt and Road Summit held in Hong Kong (HKG), Tony Fernandes, CEO of Capital A, the parent company of AirAsia, confirmed that the airline is actively engaging with the Commercial Aircraft Corporation of China (COMAC) regarding a potential order for the aircraft.
Potential First Foreign Airline to Secure C919
If the discussions materialize into a firm order, AirAsia would become the pioneering foreign airline to procure the Chinese-designed single-aisle jet. The COMAC C919 is designed to rival the Boeing 737 and Airbus A320 families, with a seating capacity of up to 192 passengers and a range of approximately 5,555 kilometers. This capacity aligns well with the short- to medium-haul routes frequently utilized in the Southeast Asian aviation sector.
Increased Air Travel Demand in ASEAN
The interest from AirAsia emerges amidst a surge in air travel demand within the ASEAN region. According to China’s civil aviation regulator, there are 2,552 scheduled passenger flights weekly between China and ASEAN countries, reflecting an 8.3 percent increase compared to the previous year. This growth aligns with AirAsia’s strategy to serve Southeast Asia’s 700 million-strong populace and capitalize on stronger business connections with China.
Pressure on Aircraft Manufacturers
The persistent backlog experienced by established manufacturers like Airbus (A320) and Boeing (737) contributes to AirAsia’s interest in the C919. Airlines globally are grappling with delivery delays, providing COMAC with an opportunity to position the C919 as a viable alternative. Malaysia’s Transport Minister Anthony Loke has indicated that both AirAsia and new entrant Air Borneo are evaluating the C919, given rising travel demand and limited aircraft availability from traditional providers.
COMAC’s Expanding Operations
The C919 commenced commercial operations in May 2023 and has since transported over 1.5 million passengers. As of now, it exclusively serves Chinese state-owned airlines: Air China (CA), China Eastern Airlines (MU), and China Southern Airlines (CZ), operating 18 aircraft collectively with hundreds more on order. While the C919 has yet to secure international airline orders, COMAC is positioning the model for broader global market penetration, with potential operations in Southeast Asia projected by 2026.
AirAsia’s Strategic Vision
Tony Fernandes underscores ASEAN’s increasingly integrated bloc status, akin to the European Union, advocating for seamless mobility of goods, services, and citizens. This environment favors low-cost carriers like AirAsia, which specialize in linking secondary cities across borders. Engaging with COMAC signifies AirAsia’s intent to diversify its fleet, reduce reliance on Western manufacturers, and strengthen its relationship with China’s aviation sector.
Thai Interest in C919
During the Belt and Road Summit, it was unveiled that discussions have begun with Thailand (BKK) regarding the acquisition of the C919. Although still in preliminary stages, Thai authorities have confirmed exploratory talks on integrating the Chinese-developed aircraft into their aviation industry. Should Malaysia and Thailand proceed with C919 orders, Southeast Asia could mark the inaugural international market for the aircraft, further cementing China’s influence in regional aviation.
