18 Jul 2025

#3 July 2025: China Aviation Industry Newsletter

British Airways celebrates 20 years connecting Heathrow and Shanghai

British Airways marked two decades of service between London Heathrow and Shanghai Pudong, highlighting its enduring commitment to linking Europe and Asia. Since its launch in 2005, the daily Boeing 787-9 service has facilitated business, tourism, and cultural exchange between the two global cities. A commemorative event was held to recognise key stakeholders and partners who have contributed to this long-standing route.

Neil Chernoff, Chief Planning and Strategy Officer at British Airways, said: “We are incredibly proud to be celebrating two decades of connecting Shanghai and London… This historic milestone… has connected communities, expanded business opportunities, and deepened cultural ties.”

EFW secures CAAC validation of the STC for A321P2F and A320P2F programmes

Elbe Flugzeugwerke (EFW) has received the Civil Aviation Administration of China’s (CAAC) validation of the Supplemental Type Certificates for its A321 and A320 Passenger-to-Freighter conversion programmes. This key regulatory milestone allows EFW to offer conversion solutions to Chinese-registered aircraft, accelerating fleet modernisation across China’s air cargo sector. The validation complements EFW’s conversion footprint in China, including facilities in Shanghai, Chengdu, Guangzhou, and Tianjin.

EFW CEO Jordi Boto commented: “With CAAC’s approval… we can now offer the full suite of our conversion solutions for Chinese-registered aircraft… particularly with the A320P2Fs and A321P2Fs expected to play a crucial role in the Chinese and Southeast Asian markets.”

Vietjet connects Hanoi to Xi’an

Vietjet inaugurated direct flights between Hanoi and Xi’an on 6 July 2025, operating four round trips weekly. This new service strengthens Vietjet’s presence in the Chinese market and supports the airline’s broader strategic goal of boosting intra-Asia connectivity. The Hanoi–Xi’an route follows the launch of its Hanoi–Chengdu service earlier in the month and is Vietjet’s seventh new China route in 2025. The carrier now operates a growing network that targets both tourism and trade flows between Vietnam and China.

Acumen’s Take

On British Airways, Celebrating 20 Years on the Heathrow–Shanghai Route

British Airways’ two-decade milestone between Shanghai and London is more than symbolic—it reaffirms the long-haul stability returning to strategic city pairs post-pandemic. The consistent use of the Boeing 787-9 on this route reflects confidence in sustained demand, particularly in premium cabins. For lessors and service providers, this longevity highlights the importance of relationship-building with flag carriers operating in high-yield corridors. It also signals renewed appetite for route expansion, especially as global carriers rebuild Asian connectivity amid ongoing fleet modernisation programmes.

On EFW’s STC Approval by CAAC for A320/A321P2F Conversions

EFW securing STC validation from CAAC for its narrowbody freighter conversions marks a strategic turning point in the Chinese cargo landscape. With four active conversion sites across China, EFW is well-placed to address the growing demand for short-haul cargo solutions fuelled by e-commerce growth and rising express parcel volumes. For asset owners, the A320 and A321 P2F platforms now offer a compliant and market-ready path to monetising mid-life assets within the Chinese leasing ecosystem—unlocking opportunities not just domestically but across Southeast Asia as well.

On Vietjet’s Launch of Hanoi–Xi’an Flights

Vietjet’s launch of direct flights between Hanoi and Xi’an is the latest in a wave of expansions strengthening Vietnam–China connectivity. The low-cost carrier’s aggressive entry into secondary Chinese cities demonstrates its ability to capture point-to-point demand ahead of legacy competitors. For narrowbody lessors, Vietjet’s continued growth reinforces the placement potential for new and mid-life A320 family aircraft. More broadly, it signals a deepening aviation and tourism corridor between two of Asia’s most dynamic economies—one that is likely to see increasing bilateral cooperation in infrastructure, trade, and travel.

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