Commercial Aircraft Corporation of China: Turbulent Times in China & Beyond

Case Code: BSTR701
Case Length: 12 Pages
Period: 2025
Pub Date: 2025
Teaching Note: Available

Price: Rs.500
Organization : The Commercial Aircraft Corporation of China
Industry : Aviation
Countries : China
Themes: International Business, Business Continuity Planning, International Business,Growth Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Background Note – About Comac

In November 2008, the government of the PRC merged the two largest aviation manufacturers in China – China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II) into the Aviation Industry Corporation of China (AVIC) based on its decision to develop large aircraft. The government then spun off from this merged entity under the name COMAC (See Exhibit II for a note on COMAC and its subsidiaries). By setting up COMAC, the government aimed to position China as a major player in the commercial aviation market globally..

Supply Chain Challenges

In January 2025, COMAC announced plans to manufacture 50 jets by the end of 2025. In March 2025, it revised the target to 75 jets. The company also planned to deliver 200 C919 jets annually by 2029..

International Expansion

While COMAC’s aspirations to fly internationally, especially in the European and North American markets, could not be realized due to lack of certification from the EASA and FAA, the Chinese aerospace company was making attempts to enter Indonesia in December 2024 and was in talks with the country’s flagship carrier Garuda Indonesia for the sale of 70 narrow body aircraft..

Reshaping The Supply Chain

COMAC was developing the CJ-1000A engine in partnership with Chinese state-owned aerospace manufacturer Aero Engine Corporation of China (AECC) to replace the LEAP-1C aircraft engine. The AECC..

The Challenges Continue…

Though the export ban was lifted by the US in July 2025, Yang stated that there was uncertainty whether such restrictions would be imposed by the US again in the future. The supply chain disruption ..

Looking Ahead

Though COMAC had scaled back its production target from 75 to 25 jets in September 2025 for the year 2025..

Exhibits

Exhibit I: COMAC’s Delivery Targets (2022 to 2025)
Exhibit II: A Note on COMAC and its Subsidiaries
Exhibit III: Investors in COMAC
Exhibit IV: Fleet Evolution of COMAC
Exhibit V: Order Backlog of COMAC and Aerospace Companies
Exhibit VI: Jets Delivered by COMAC (May 2025)
Exhibit VII: Regional Distribution of C919’s Primary Suppliers

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