Watch out, Boeing: China’s aerospace giant faces first real test as it delivers aircraft to major Chinese airlines
Commercial aviation is run by a duopoly, with plane makers Boeing and Airbus accounting for an overwhelming majority of the market share. These are both western companies, headquartered in the U.S. (Boeing) and France (Airbus), but there's a new competitor on the scene
After years of development, the Commercial Aircraft Corporation of China (COMAC) recently celebrated a huge milestone when it simultaneously delivered three of its ARJ21 aircraft to China Eastern, China Southern and Air China, the largest airlines in mainland China.
The ARJ21 originally entered service in 2016 with Chengdu Airlines, which currently operates 20 of the regional jets. Genghis Khan Airlines operates four ARJ21s and Jiangxi Air has two. Still, the simultaneous delivery of the first ARJ21s to China's three largest airlines represents a pivotal moment for COMAC as it attempts to compete with larger and more established manufacturers.
The ARJ21-700, the base model of the jet, can seat between 70 and 95 passengers in a 2-3 configuration. The plane has a range of between 1,4000 and 2,300 miles, and is powered by two rear-mounted General Electric CF34 engines, the same type found on most Bombardier CRJ and Embraer E-series jets.
Regional jets are not very common in China, where due to the sheer size of the population airlines often fly 777s and 747s on short-haul domestic routes. Prior to taking delivery of the ARJ21, the smallest jets in Air China's fleet were its 128-seat A319s.
Further Reading: 5 reasons Asia is the best continent for short-haul flying
Since delivering the first ARJ21 to Chengdu Airlines in 2015, COMAC has struggled to ramp up production, delivering just 30 aircraft over the last 5 years. By comparison, Boeing was producing more than 40 737 MAX aircraft a month before it had to suspend production amid the plane's ongoing grounding.
The ARJ21 has been hampered by delays since the program started in 2002. COMAC originally planned to deliver the first aircraft in 2007 (which would've been quite an impressive timeline for a company that had never built commercial aircraft before), but that date ended up slipping by eight years as development was hampered by wing cracks, faulty wiring and problems with the plane's avionics system.
With 378 orders to date, COMAC appears to be doing quite well with the first plane they've ever put on the market. However, the plane has failed to attract large numbers of orders outside of China. Excluding about 25 orders from smaller African and Asian airlines (as well as 20 by GE's aircraft leasing division), all of COMAC's orders for the ARJ21 have come from state-owned or controlled Chinese airlines and investment groups. Approximately 25% of the ARJ21's total orders occurred in August 2019, when Air China, China Eastern and China Southern simultaneously announced that they'd agreed to each purchase 35 ARJ21s for delivery between 2020 and 2024.
Even if the ARJ21 doesn't become a worldwide success, the experience designing, selling and manufacturing a commercially viable aircraft will aid COMAC significantly with the other jets it has under development. Most important is the C919, COMAC's single-aisle mid-size jet which would directly compete with the Boeing 737 and Airbus A319/320/321 family. Those smaller single-aisle jets represent the largest segment of the commercial aircraft market, both in terms of number of orders and dollar value.
Since COMAC has yet to prove itself on the world stage, it's biggest advantages right now are competitive pricing and the ability to lean on China's state-run economy to drum up orders (and crucial funding). The C919 has 305 firm orders and options over 700 more aircraft, all but 10 of which are from Chinese companies. GE Capital Aviation Services is again the lone exception with a firm order for 10 C919 aircraft and options for 10 more.
Bottom line
It will likely still be some time before COMAC poses a real challenge to the major aircraft manufacturers like Boeing and Airbus. Regional jets are an odd fit for China's large and growing aviation market, but that hasn't stopped state-owned and controlled airlines from placing orders for hundreds of ARJ21s and C919s. While the ARJ21 has technically been in service for a few years now, the recent simultaneous delivery to China's largest airlines represented a turning point, and an important test, for COMAC.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees