China’s C919 waiting in the wings as Shanghai announces plane replacement plan

Shanghai has recommended airlines replace their older models by 2027 – and China’s home-grown planes are likely on the standby list

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Shanghai’s government has encouraged airlines based in the city to begin replacing the older models in their fleets. Photo: Handout

Published: 6:30pm, 9 Aug 2024

China’s largest aviation hub has announced plans to expedite the renewal of its airlines’ fleets to spur economic recovery, encouraging carriers to purchase 200 new aircraft – including home-grown models – by 2027.

Shanghai authorities unveiled a host of measures for equipment swaps in the transport sector on Thursday, including a call for airlines based in the city to procure new, more environmentally friendly aircraft and retire less fuel-efficient ones.

Analysts said while the plan could be a boon for the local aviation industry – as well as indigenous aircraft – carriers, not the government, must make their final procurement decisions.

Shanghai’s action comes after the State Council, China’s cabinet, identified large-scale equipment renewal and the trading in of consumer goods as potential sources of growth for consumption and spending in March. Under Beijing’s initiative, localities were encouraged to play to their strengths and implement the guideline with proposals tailored to their industries.

Shanghai, which saw more passengers and cargo move through its airports than any other Chinese city in 2023 and the first half of 2024, is well positioned to motivate its airlines to refresh their fleets.

China Eastern Airlines, the country’s second-largest carrier by fleet size, is headquartered in the city and has 620 planes in operation. The state-owned behemoth has announced orders for 105 units of the C919 – narrowbody planes made by the Commercial Aircraft Corporation of China (Comac) in Shanghai – with seven already delivered.