Aviation makers likely consolidate for large jets
Updated: 2008-01-02 22:17
Beijing -- China Aviation Industry Corporation I (Avic I), which last year elevated China into the world's fourth country to develop its own advanced fighter aircraft - the "Jian 10" - is considering consolidation with another domestic large jet maker.
The discussion between Beijing-based Avic I and China Aviation Industry Corporation II (Avic II) might lead to the re-merging of the two State-owned enterprises spun off in 1999 from the former Aviation Industries of China.
But discussion on merger was only "exploratory". A detailed consolidation plan was expected to be unveiled later this year, the Shanghai Securities News reported on Wednesday, quoting "unidentified well-informed sources" with Avic I.
"To enhance the manufacturing capability of the aviation industry, Avic I and Avic II will probably undertake consolidation and cooperation," a vice president of Avic I was quoted as saying, being the first head-on response to the rumors of merger concerning the two aviation producers.
The industrial maneuver was intended to concentrate preponderant resources of both companies and prepare the industry for the production of large jets, said the newspaper run by this Xinhua News Agency.
China's State Council, the Cabinet, approved in principle last February the start of research and development of large aircraft, an air-freighter with a take-off weight of more than 100 tonnes or an airliner with more than 150 seats, as well as the establishment of a jumbo passenger aircraft shareholding company.
Just before the New Year holiday, Chinese Premier Wen Jiabao paid a special visit to the Avic I Xi'an Aircraft Industry (Group) Company to give a pep-talk on the manufacturing of large aircraft.
During his talks with technicians, Wen emphasized a China-made large aircraft was a "significant strategy" for the country, which would lift China's competence in the global market as a slew of technical breakthroughs especially in engine, materials and electronic equipment to be made.
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