China carriers scoop up homegrown jets despite travel downturn

China's top state-owned airlines are on track to acquire double the number of homegrown planes in 2022 from last year, as the government bolsters support for its budding aviation sector even while travel demand continues to suffer from the coronavirus. China Eastern Airlines announced plans this month to raise up to 15b yuan ($2.25b), including from its parent company, largely to expand the carrier's fleet. It is slated to receive 38 aircraft in the next few years including 24 ARJ21 regional jets and four C919s, both produced by Commercial Aircraft Corp. of China, known as COMAC. In commercial service since 2016, the ARJ21 seats roughly 90 and already is used for domestic flights by the China Eastern group. The C919 is sized to compete with the Airbus A320 and the Boeing 737 with around 160 seats. The plane, designed to propel COMAC to the international stage, is expected to enter commercial service as early as this year under China Eastern. China Southern Airlines and Air China also are buying more Chinese-built aircraft. The three carriers look to receive 31 COMAC planes this year, about twice as many as in 2021, boosting the share of COMAC craft in their fleets by 5 percentage points to 19%. Another 30 planes are slated for delivery in 2023. Neither the ARJ21 nor the C919 has received safety certification in the US or Europe, meaning they can fly only within China and a few other markets. Selling to Chinese carriers is currently the only way that COMAC can recoup its investment and fund new production and development. Yet COVID-19 still hinders travel demand in China. Shanghai was placed under a weekslong lockdown in response to a surge in infections, while Beijing, Guangdong Province and other areas have toughened restrictions on long-distance travel.<br/>