11 Sep 2025
#2 September 2025: China Aviation Industry Newsletter
BOC Aviation Signs Lease Agreement with JetSMART for Three A320neo Family Aircraft
BOC Aviation has entered into a purchase agreement with Airbus for three aircraft—two A321neo and one A320neo—which will be placed on long-term lease with JetSMART Airlines, a South American ultra low-cost carrier. All aircraft will be powered by Pratt & Whitney GTF™ engines and are scheduled for delivery in 2027.
Steven Townend, CEO and Managing Director of BOC Aviation, stated:
“We are excited to celebrate our third transaction with JetSMART. These fuel-efficient A320neo family aircraft will enable JetSMART to expand its footprint in the growing Latin American market. This agreement reflects our ability to support airline fleet ambitions at various stages of their growth.”
EHang and Hefei Government Deepen Partnership to Launch VT35 eVTOL Hub
EHang has signed a strategic cooperation agreement with the Hefei municipal government to establish a production hub for its new VT35 series—a long-range, pilotless, lift-and-cruise electric vertical takeoff and landing (eVTOL) aircraft.
The hub will encompass R&D, testing, manufacturing, airworthiness certification, supply chain, operations, and talent development, accelerating the real-world deployment of advanced air mobility (AAM) solutions in the region.
Huazhi Hu, Founder, Chairman, and CEO of EHang, said:
“Since partnering with Hefei in 2023, we have achieved several key milestones. The VT35 product hub represents a major step in scaling eVTOL deployment. Hefei’s strong supply chain and supportive policies make it a fertile ground for innovation, where R&D, certification, and daily operations converge. Together, we aim to make advanced air mobility scalable, safe, and growth-oriented.”
Kuehne+Nagel and MTU Strengthen Aero Engine Logistics in China
Kuehne+Nagel and MTU Maintenance Lease Services (MLS) have expanded their global partnership with the opening of a new aero engine parts fulfilment centre in Zhuhai, China.
Located within the Guangdong–Hong Kong–Macao Greater Bay Area, the centre will support engine materials logistics across China and the broader APAC region. Operated by Kuehne+Nagel, the bonded facility ensures same-day or 24-hour dispatch, supporting urgent LRU needs and AOG events with high compliance and reliability standards.
Patrick Biebel, Managing Director of MLS, stated:
“The Zhuhai facility exemplifies our commitment to rapid and reliable engine parts access. With fulfilment centres strategically positioned globally, we can minimise downtime and provide efficient support for our customers throughout China and the Asia-Pacific region.”
Acumen’s Take
On BOC Aviation’s Lease Deal with JetSMART
BOC Aviation’s continued partnership with JetSMART demonstrates its strategic focus on supporting ULCCs in high-growth regions like Latin America. The placement of A320neo family aircraft also reflects sustained demand for fuel-efficient narrowbodies. For lessors, such transactions highlight the importance of early engagement and orderbook flexibility to service evolving airline requirements globally.
On EHang–Hefei VT35 Series Hub
EHang’s deepening collaboration with Hefei showcases the scale at which China is committing to the next phase of urban air mobility. By embedding R&D, certification, and production into a single ecosystem, the VT35 series hub may serve as a national model for eVTOL industrialisation. This positions Hefei as a potential centre of excellence for eVTOL and reinforces China’s ambition to lead in advanced air mobility.
On Kuehne+Nagel–MTU’s Zhuhai Fulfilment Centre
The Zhuhai engine parts facility underlines the critical role of fast, regionalised logistics for engine leasing and maintenance. As aircraft utilisation rebounds, reducing AOG downtime becomes a priority for airlines and lessors alike. This move by Kuehne+Nagel and MTU positions them as key enablers in China's engine aftermarket, where proximity and speed are now strategic advantages.
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