China to Build Large Passenger Jets
Quote:
China to take on Boeing, Airbus
March 19, 2007 - 8:35AM
The Chinese cabinet has approved in principle a plan to develop the country's own large passenger jets, the government said on Sunday, in a move that could challenge the dominance of Boeing Co and Airbus.
The State Council, China's cabinet, has also given the go-ahead to set up a company to build the aircraft, the government said in a statement on its website.
"The State Council meeting believes that building large aircraft is an important, strategic policy of the Communist Party and State Council, and it has also been the wish of the entire nation for many years," the statement said.
"Our country has been developing the aviation industry for 50 years, and already has the technical and material base to develop large aircraft."
The statement said the decision was taken at a cabinet meeting chaired by Premier Wen Jiabao on February 26. It did not say why it had taken so long to announce.
The statement gave no other details, such as investment figures or where or when the aircraft might be made.
Industry sources told Reuters earlier this month that China's two state aircraft makers, AVIC I and AVIC II, as well as the Commission of Science Technology and Industry for National Defence, would be involved in developing the jets.
AVIC I and AVIC II, both of which make components for Airbus and Boeing, also have experience in civilian jet development and manufacturing.
AVIC I has secured more than 30 orders for its ARJ21 regional jet, scheduled for commercial operation next year, while AVIC II unit Hafei Aviation Industry makes the ERJ-145 regional craft in partnership with Brazil's Embraer.
With its air passenger traffic growing at double-digit rates in recent years, China will need about 2,650 new passenger aircraft over the next 20 years, worth $US289 billion ($366.7 billion), according to the latest projections from Airbus, a unit of European aerospace group EADS.
Reuters
