With Comac C919, China is seeking to disrupt the dominance of Boeing and Airbus in commercial jetliner manufacturing. EPA
With Comac C919, China is seeking to disrupt the dominance of Boeing and Airbus in commercial jetliner manufacturing. EPA
With Comac C919, China is seeking to disrupt the dominance of Boeing and Airbus in commercial jetliner manufacturing. EPA
With Comac C919, China is seeking to disrupt the dominance of Boeing and Airbus in commercial jetliner manufacturing. EPA

China's first domestically-produced passenger jet makes maiden commercial flight


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A made-in-China aircraft to rival Boeing and Airbus underwent its maiden commercial flight on Sunday, almost six months after being delivered to China Eastern Airlines.

Flight MU9191 took off from Shanghai at 10.32am local time, the airline said on its Weibo account. The plane carried 128 passengers and landed in Beijing, the People’s Daily said in a tweet.

The commercial debut marks a long journey for the Commercial Aircraft Corporation of China, or Comac as it is better known.

The manufacturer first started developing the narrow-body airliner in 2008 and production began in late 2011. But it was not until September 2022 when the C919 received official certification to fly, marking the end of flight testing and paving the way for Comac to start deliveries.

China Eastern Airlines is the C919’s launch customer, with an order for five planes.

After the first jet’s delivery in December, the aircraft undertook a period of flight activities almost daily in order to satisfy a requirement for 100 hours of proving flights.

But from February 7 to May 17, the plane did not fly regularly, FlightRadar24 data show.

Luggage collection detailed for China Eastern Airlines flight MU9191 at the Beijing Capital International Airport on May 28. EPA
Luggage collection detailed for China Eastern Airlines flight MU9191 at the Beijing Capital International Airport on May 28. EPA

China is seeking to disrupt the dominance of Boeing and Airbus in commercial jetliner manufacturing. Both Airbus’s A320 Neo family and Boeing’s 737 Max jets have a full order book through to the end of the decade, meaning any carrier wanting narrow-body jets sooner may need to find an alternative.

Comac has received more than 1,000 orders for the C919, though the majority are not confirmed and many are from Chinese aircraft lessors yet to place the jet with an airline.

Doubts remain over Comac’s ability to fulfil those orders. The Chinese manufacturer is also reliant upon foreign suppliers including General Electric, Honeywell International and, for the engines, CFM International – a venture between GE and France’s Safran.

The Comac C919 makes its first commercial flight at Shanghai Hongqiao International Airport on May 28. Reuters
The Comac C919 makes its first commercial flight at Shanghai Hongqiao International Airport on May 28. Reuters

Shanghai-based China Eastern, one of the country’s biggest carriers, said on its earnings call last week that it plans to bring all five C919s into its fleet this year.

The C919 remains certified only to fly within China. The European certification process is under way. Each C919 costs about $99 million, before customary discounts to airlines.

China's first domestically produced passenger jet C919 flies during its first commercial flight from Shanghai to Beijing, in Shanghai on May 28, 2023. AFP
China's first domestically produced passenger jet C919 flies during its first commercial flight from Shanghai to Beijing, in Shanghai on May 28, 2023. AFP
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Villains
Queens of the Stone Age
Matador

The Year Earth Changed

Directed by:Tom Beard

Narrated by: Sir David Attenborough

Stars: 4

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PROFILE OF SWVL

Started: April 2017

Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

Updated: May 28, 2023, 11:00 AM