Commercial Aircraft Corporation of China, Limited (“COMAC”), Friedmann Pacific Asset Management Limited (“FPAM”) and China Aircraft Leasing Limited (“CALC”), have signed a three-way cooperative framework agreement for the acquisition of ARJ21 regional jets. Negotiations are continuing with a view to finalizing a formal binding agreement.

CALC plans to acquire 60 ARJ21-700 series aircraft (including a confirmed order of 30 ARJ21-700 aircraft and an option to purchase 30 ARJ21 series aircraft). The list price of the 60 ARJ21-700 series aircraft is approximately $2.3bn. This is the largest single order of ARJ21-700 aircraft for COMAC since it started commercial operations.

CALC will lease the aircraft to an Indonesian-based airline, in which FPAM will be a major investor. The first batch of aircraft is due to be delivered in the next one to two years, and the remaining aircraft of the confirmed order will be delivered in the next five years.

The future Indonesian airline will become the first foreign airline operating an all-ARJ21 fleet, giving China’s first home-grown passenger jet a firm foothold in the Southeast Asian market. COMAC will establish a support and maintenance network in Indonesia.

CALC has already ordered 20 C919 aircraft from COMAC, and the new agreement is seen as further consolidating the two companies’ bilateral strategic partnership.

The ARJ21-700 entered revenue service with Chengdu Airlines on 28th June, flying 70 passengers from Chengdu to Shanghai.