AIRSHOW-Chinese lessor orders ARJ-21 jets in $2.3 bln deal

By Siva Govindasamy
SINGAPORE, July 12 (Reuters) - China Aircraft Leasing Group
(CALC) 1848.HK has bought 30 Comac ARJ-21 regional jets and
signed options for 30 more in a deal potentially worth $2.3
billion, the company said in a statement late on Monday.
The planes will be used by an unnamed Indonesian airline in
which CALC's parent, Hong Kong-based investment firm Friedmann
Pacific Asset Management, plans to invest in, it added.
The 78-90 seater jets would be delivered over the next five
years, and Chinese state-owned planemaker Comac would set up
maintenance and after-sales offices in Indonesia as part of the
deal.
The leasing firm, which ordered 20 of Comac's larger C919
narrowbody planes in 2012, said the latest deal reflected its
confidence in China-made aircraft, and allowed it more
flexibility to provide leasing options for airlines.
CALC has 70 Airbus AIR.PA and Boeing (NYSE:BA) BA.N aircraft and
says that it has another 103 Airbus planes on order, allowing it
to expand its fleet to 173 aircraft by 2022.
The deal is a boost for the ARJ-21, which is more than 10
years behind its original schedule and had its first commercial
flight with Chengdu Airlines in end-June.
It competes with similar small passenger jets produced by
Brazil's Embraer SA EMBR3.SA , Canada's Bombardier Inc
BBDb.TO and the Russian Sukhoi Superjet.
The ARJ-21 has garnered just over 300 orders, mainly from
domestic carriers. General Electric (NYSE:GE) Co's GE.N aviation arm
supplies the engines, and its leasing firm has ordered five
planes with options for 20 more.
It has not received certification from other regulators such
as the United States' Federal Aviation Administration, which
means that only airlines in China and those that recognise the
Chinese certification process can operate the aircraft.
China is keen to establish itself as a global supplier of
aircraft, and hopes that its in-development C919 narrowbody jet
will compete with the established 737s and A320s. It is also
working on a widebody aircraft project with Russia.