What's Happening?
Vietjet has returned two ARJ21/C909 aircraft leased from Chengdu Airlines after a brief trial period. The decision follows a state visit to Vietnam by China's President Xi Jinping, during which the lease was initiated. Vietjet's trial of the Comac-built
regional jet was short-lived, as the airline opted not to extend the lease due to high operational costs associated with foreign crew and maintenance services. The C909, formerly known as ARJ21, has been rebranded by Comac, with over 170 units delivered to date. Major operators of the C909 include China Southern Airlines, Air China, and Chengdu Airlines.
Why It's Important?
Vietjet's decision to cease operations with the C909 highlights the challenges airlines face when integrating new aircraft types, particularly regarding operational costs. The move underscores the importance of cost management in fleet decisions, which can significantly impact an airline's financial performance. The C909's operational dynamics, including sector lengths and fleet sizes, are crucial for airlines aiming to optimize efficiency and profitability. Vietjet's experience may influence other airlines considering similar leases, affecting the market dynamics for regional jets.
