SAO PAULO, Sept 26 (Reuters) - Brazil's Total Linhas

Aereas, a small cargo and charter airline, aims to become the

first firm outside Asia to buy aircraft from China's state-owned

planemaker, which is trying to break into a global passenger jet

market dominated by Western manufacturers.

Total and the Commercial Aircraft Corporation of China

(COMAC) have been in talks for months, said the airline's

controlling partner Paulo Almada, who will visit COMAC in

October to discuss a potential order of up to four C919 planes.

Brazilian Ports and Airports Minister Silvio Costa Filho

said Total sought out the government to share its intentions,

but has not presented any formal plan so far.

A deal could foster closer Brazil-China ties in the aviation

sector ahead of Chinese President Xi Jinping's state visit in

November. Yet some industry observers have voiced skepticism

about Total's business plan for the Chinese jets.

"Even if Total is getting a great deal on the aircraft, its

unproven reliability record and lack of support network in

Brazil make it a very risky choice," PA Consulting Aviation

Partner Carlos Ozores said.

Total's Almada said the airline was forced to look beyond

traditional Western manufacturers such as Airbus and

Boeing ( BA ) because they were unable to meet demand for new

planes as they grapple with supply chain constraints.

Brazil's Embraer ( ERJ ) has production slots available

from 2026 but only offers passenger jets with under 150 seats.

"The industry is dealing with supply shortages, but COMAC

told us they could deliver the aircraft by next March," said

Almada, who declined to share documents from the negotiation,

citing a non-disclosure agreement.

A deal could be a "milestone" for Brazil, said Senator

Rogerio Carvalho of the ruling Workers Party, who took part in

meetings with Total. Brazil would expect reciprocity, he added,

with an increase in Chinese demand for Embraer ( ERJ ) jets.

Embraer ( ERJ ) considers China a key market, but has struggled to

find new business there since the 2016 closure of a joint

venture in Harbin.

After Brazilian President Luiz Inacio Lula da Silva visited

Beijing last year, Embraer ( ERJ ) inked a deal to convert 20 of its

aircraft into cargo planes with a partner in Lanzhou,

frustrating hopes for passenger jet sales to a Chinese airline.

FINANCING, CERTIFICATION

Talks between Total and COMAC have included the possibility

of financing from the China Development Bank for 80% of the

total value in up to 10 or 12 years, Almada said, adding that

each C919 had a list price of about $90 million.

COMAC and the China Development Bank did not immediately

respond to requests for comment.

The existing Total fleet consists of ATR 42-500 turboprops

and Boeing 737-400 freighters. The C919 seats up to 192 people

and competes in a similar category to the Boeing 737 and Airbus

A320.

Only nine C919s are currently in service since they started

commercial operation in May 2023, all with Chinese airlines.

Outside China, the only carrier to operate a COMAC plane is

Indonesian low-cost carrier TransNusa, which flies the smaller

ARJ21 regional jet, which was certified a decade ago. A

Brunei-based startup airline, GallopAir, has ordered ARJ21s and

C919s.

COMAC this year has increased sales and production plans and

has been marketing the C919 outside China.

Almada said Total would fly the C919s on charter-style

flights booked by other airlines on an Aircraft, Crew,

Maintenance and Insurance (ACMI) basis, which the industry uses

to meet urgent or seasonal demand. Pilots and mechanics would be

trained in China by COMAC, he said.

A major hurdle for the C919 is that it lacks certification

outside of China, particularly benchmark certifications from the

U.S. and European Union. The European Union Aviation Safety

Agency (EASA) is currently evaluating the plane.

Total would also push to get the Chinese planes certified in

Brazil, Almada said.

Brazil's civil aviation agency ANAC said a formal request

for certification has not yet been filed.