China Slows Airbus Delivery Approvals, Pressuring Europe to Advance C919 Certification

According to Bloomberg citing informed sources, China is slowing down the delivery approval process for Airbus aircraft, pressuring European regulatory authorities to expedite the certification process for Chinese domestically produced aircraft.

Over the past several months, the Civil Aviation Administration of China (CAAC) has delayed the final approval required for Airbus aircraft to enter and operate in China. Airbus's commercial aircraft deliveries in the first quarter of this year dropped to their lowest level since 2009, with the company citing an "administrative" issue that has blocked the delivery of nearly 20 aircraft to China. Cirium data shows that in the first five months of this year, Airbus only delivered 16 aircraft to Chinese airlines, compared to 47 in the same period last year.

The backdrop to this move is COMAC's (Commercial Aircraft Corporation of China) pursuit of obtaining the first-ever airworthiness certification for the C919 outside Asia, with the approval authority held by the European Union Aviation Safety Agency (EASA). If the tensions between China and Europe over COMAC's certification continue to escalate, it could threaten Airbus's leading position in the world's second-largest aviation market.

Airbus's Sharp Decline in Deliveries to China

Airbus CEO Guillaume Faury had previously anticipated that deliveries would return to normal by the end of June last month, without providing further details. Airbus characterized the matter as an administrative issue that had been resolved. The data shows that the impact has been quite significant. Deliveries to China in the first five months of this year have decreased by approximately 66% year-on-year, which clearly hampers Airbus's global delivery pace.

China is Airbus's largest customer by fleet size. Airbus had previously forecast that China would receive about 9,570 new aircraft over the next 20 years, and the strategic importance of this market is self-evident.

The C919 Aims to Go Global

The C919 can accommodate up to 192 passengers and competes directly with the Airbus A320 and Boeing 737, but its engines and avionics systems still heavily rely on Western technology. The aircraft currently only operates within China. Obtaining European airworthiness certification would be a key step for the C919 to enter the global market. The certification process for a new aircraft typically takes several years, but COMAC is attempting to shorten this process.

The single-aisle narrow-body aircraft market that the C919 is targeting is the largest segment of the global civil aviation industry. Once it receives Western certification, COMAC will have the capability to market the aircraft to airlines around the world.

Precedents for Airworthiness Certification Bargaining

Boeing also faces challenges in the Chinese market. Although a long-awaited order was facilitated by Trump during his visit to China this month, ending a decade of no Chinese airlines purchasing Boeing aircraft, the order size was below expectations.

Using certification as leverage is not the first instance. Earlier this year, Trump threatened to impose a 50% tariff on Canadian-made aircraft and suspended certification for new Canadian productions until Canada approved the certification of Gulfstream business jets. A few weeks later, Canada's aviation regulatory agency completed the certification for the relevant Gulfstream model.

EASA did not respond to requests for comment, and the CAAC and COMAC also did not respond to the faxed interview requests.