30 Oct 2025
#5 October 2025: China Aviation Industry Newsletter
BOC Aviation Signs Lease Agreement with Loong Air
BOC Aviation announced the placement of three Airbus A320neo aircraft, powered by CFM LEAP-1A engines, with Zhejiang Loong Airlines. The aircraft are sourced from BOC Aviation’s orderbook and are scheduled for delivery in 2027. Chief Executive Officer and Managing Director Steven Townend stated, “We are proud to continue expanding our presence in China through this transaction with Loong Air, which will add three more technologically advanced and fuel-efficient Airbus A320neos into its fleet.” He added that BOC Aviation, one of the world’s largest lessors by orderbook size, remains committed to supporting China’s rapidly evolving aviation landscape through flexible and sustainable fleet solutions.
Cathay and Airbus Form Co-Investment Partnership for Scaling Sustainable Aviation Fuel Adoption
Cathay Group and Airbus have announced a joint investment of up to US$70 million (HK$545 million) to advance Sustainable Aviation Fuel (SAF) production across Asia and globally. The partnership, unveiled in Hong Kong during the IATA World Sustainability Symposium, aims to accelerate SAF availability while advocating for supportive policy frameworks on both supply and demand sides. Cathay Chief Operations and Service Delivery Officer Alex McGowan stated that SAF remains the single most effective lever for decarbonising aviation and reaffirmed Cathay’s intent to invest in scalable SAF solutions. The initiative complements Cathay’s broader participation in the oneworld BEV SAF Fund and other long-term sustainability ventures with industry partners.
IATA World Safety and Operations Conference Held in China for First Time
The International Air Transport Association (IATA) hosted its World Safety and Operations Conference (WSOC) in Xiamen for the first time, drawing over 800 representatives from airlines, regulators, and suppliers across nearly 70 nations. Themed “Futureproofing Aviation: Strategies for Success”, the event featured sessions on safety, cabin operations, flight operations, and crisis management. Complementary activities included the IATA Operational Safety Audit (IOSA) workshop and a Turbulence Awareness Forum, both aimed at enhancing operational resilience and safety performance through data-driven practices. During the event, China’s Minister Han Jun met with IATA Director General Willie Walsh to discuss deepening cooperation between CAAC and IATA, promoting global air transport development, and ensuring supply chain stability in the aviation sector.
Acumen’s Take
On BOC Aviation’s Lease to Loong Air
The lease agreement reinforces BOC Aviation’s position as a key facilitator of China’s narrowbody fleet renewal. The A320neo placements reflect continued domestic demand for fuel-efficient, next-generation aircraft. For Loong Air, the transaction supports fleet modernisation and network optimisation amid growing competition in China’s regional markets.
On Cathay–Airbus SAF Partnership
The co-investment between Cathay and Airbus marks a pivotal step toward regional SAF ecosystem development. By combining airline and OEM investment capacity, the partnership sets a precedent for cross-sector collaboration in Asia’s sustainability agenda. The focus on both advocacy and production scalability highlights the industry’s transition from pilot programmes to commercial SAF viability.
On IATA WSOC in Xiamen
Hosting the WSOC in China underscores the country’s growing prominence in global aviation governance. The conference’s emphasis on safety innovation and crisis preparedness aligns with China’s broader objective of positioning itself as a regional leader in operational excellence and aviation safety management.
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