Farnborough Air Show

Comac Draws Record ARJ-21 Order

 - July 12, 2016, 4:15 PM

Chinese airframe maker Comac, Hong Kong-based investment firm Friedmann Pacific Asset Management Limited (FPAM) and China Aircraft Leasing Limited (CALC) entered into a tripartite cooperative framework agreement at the show Tuesday calling for the acquisition of as many as 60 ARJ21 regional jets.

Under the terms of the tentative deal, CALC would place a firm order for 30 of the airplanes and take options on another 30. Comac (Chalet D4; Hall 4 Stand C100) values the deal for the 60 airplanes at $2.3 billion based on list prices, making it the biggest contract for the ARJ21 to date. CALC plans to lease them to a new unnamed Indonesian airline in which FPAM plans to invest.

Preliminary schedules call for delivery of the first batch of aircraft in the next one to two years, and the remaining aircraft would go to the airlines over the following five years. The deal marks the ARJ21’s entrĂ©e into Southeast Asia, and FPAM’s Indonesian airline would become the first foreign airline to operate a fleet consisting solely of ARJ21s.

Comac emphasized its intention to establish an “all-rounded services network” in Indonesia, providing technical support, maintenance and customer support for the ARJ21. “Friedmann Pacific, CALC and COMAC are here today to sign a cooperative framework agreement with historical significance,” said Comac general manager He Dongfeng during a Farnborough signing ceremony. “It sets to create a positive and long-term impact on aviation development in Asia Pacific and globally, and on the implementation of the nations’ Belt and Road Initiatives.

Friedmann Pacific has been focusing on aviation investment over the years, and has built up a wealth of experience and solid strength in the areas of aircraft leasing, airport investment and operations, aircraft disassembly, and airline operations. CALC is a specialist of aircraft leasing possessing an elite team and global financing capabilities. The three parties share the same industry background, belief in win-win approach and long-term vision. I believe the cooperation will be crowned with success through our joint efforts.”

The first ARJ21 last month entered revenue service with launch customer Chengdu Airlines.