EASA clears C919 hardware tests as Boeing faces hedge fund outflows and production caps
The European Union Aviation Safety Agency has completed the third phase of certification for China’s C919, marking a milestone for COMAC as it seeks to challenge the Western duopoly. Meanwhile, Boeing has secured FAA approval to increase production, even as hedge fund interest wanes.
European aviation regulators have concluded a months-long hardware testing process for the China-made COMAC C919 passenger jet, identifying no major hardware issues. The aircraft, which has been in domestic service in China for over three years, has now cleared the third hurdle in the European Union Aviation Safety Agency’s four-step certification pathway. Full European certification remains pending, requiring software adjustments and further regulatory review, with agency executive director Florian Guillermet previously estimating a timeline of three to six years for completion.
This development arrives as the global commercial aviation landscape shifts under pressure from manufacturing constraints and quality control challenges. Boeing has received Federal Aviation Administration approval to issue airworthiness certificates for all 737 MAX and 787 airplanes starting next week, following a recent increase in its monthly production cap to 42 aircraft, up from 38. The manufacturer aims to further raise this limit to 47 aircraft per month in the coming months. Conversely, Airbus is targeting a narrowbody A320-family output of 75 planes per month by 2027, though it contends with supplier constraints regarding engines and structural panels.
Financial metrics highlight the diverging fortunes of the Western giants. Airbus reported full-year 2025 revenue of €73.4 billion and maintained a net cash position exceeding €12 billion, alongside an adjusted operating margin close to 10 per cent. Boeing generated full-year 2025 revenue of $89.5 billion and returned to profitability with an operating income of $4.3 billion, yet it carried more than $54 billion in debt and reported a lower operating margin of approximately 4.8 per cent. While Boeing’s backlog reached a record $682 billion, Airbus held an order book valued at €619 billion.
Market sentiment towards Boeing has cooled, with institutional investors showing signs of retreat. Data from a hedge fund database indicates that 99 elite funds held stakes in Boeing at the end of the first quarter of 2026, a decline from 114 in the fourth quarter of 2025. Prominent investor D.E. Shaw has acquired put options on Boeing stock worth more than $304 million, reflecting caution despite the company’s efforts to normalise delivery cadences and repair its brand image following past safety crises.
For COMAC, the potential opening in the market is significant, particularly in the narrowbody segment where Boeing and Airbus hold a combined backlog of over 15,000 aircraft. The Chinese manufacturer has secured orders from China Eastern Airlines and Air China for 100 planes each, with deliveries scheduled by 2030. While the scale of COMAC remains small compared to its Western counterparts, the entry of a state-backed competitor with government-supported financing could intensify price competition, posing greater strategic risk to Boeing’s margins than to Airbus’s more diversified and financially resilient position.
