Aviation makers likely consolidate for large jets
Updated: 2008-01-02 22:17
Currently, only the United States, Russia, France, Germany, Britain and Spain have the ability to build large aircraft, with Boeing and Airbus taking the lion's share of the international market.
There is no official timetable for the set-up of the new large passenger aircraft company, but Shanghai-based China Business News revealed on Tuesday that March would be the earliest possible date.
Both Avic I and Avic II, together with domestic airlines and government-controlled investment companies, would likely be the shareholders of the large passenger aircraft company, it said.
The new start-up would only be responsible for the design and assembly of large aircraft while production of components and parts would still be left to other aviation enterprises, the Shanghai Security News reported, quoting a former expert with the Ministry of Science and Technology.
Being the leading aviation makers, both Avic I and Avic II have expressly shown their interests in large jets.
"There are no rivals but only partners when it comes to jumbo jet manufacturing," general manager of Avic I Lin Zongming has said.
Given that the Avic I has taken over the larger and better slice of assets from the former Aviation industries of China, industry analysts say Avic II might give up its civil aviation outfits such as airborne equipment production to Avic I so as to beef up the manufacturing capacity of the latter.
Another market guess is to take out the civil aviation business from both companies which also engage in military product manufacturing to establish a third company solely dealing with aircraft for civilian use.
With 240,000 employees and aggregate assets of more than 100 billion yuan, Avic I is the parent of 47 industrial enterprises, 31 research and development institutes, provides 90 percent of the aviation weaponry systems of the People's Liberation Army and has produced over 15,000 aircraft in 20 projects, 50,000 aero-engines and more than 10,000 missiles, according to company statistics.
The maiden flight of ARJII1, China's first 90-seat regional jet with Avic I holding the intellectual property right, widely viewed as a step closer to large aircraft, is scheduled for this year.
The smaller Avic II boasts a total asset of 31.5 billion yuan, with its aero production covering a wide rang of military and civilian vehicles including helicopters, trainers, general aircraft, unmanned aerial vehicles, engines and airborne equipment.
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