China Sets Up Planemaker to Challenge Airbus, Boeing

Bloomberg:

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China Sets Up Planemaker to Challenge Airbus, Boeing (Update1)

By Irene Shen

May 11 (Bloomberg) -- China set up a company to build large jets, challenging the dominance of Airbus SAS and Boeing Co. in the market for planes with 150 seats.

China Commercial Aircraft Co. was formed today with an initial investment of 19 billion yuan ($2.7 billion), according to a statement on the central government's Web site. Investors in the company include China Aviation Industry Corp. I, or AVIC I, and AVIC II.

China aims to build a 150-seat aircraft by 2020 to support the expansion of its domestic travel market and to compete with Boeing and Airbus overseas. The plan is also part of China's wider drive to develop more sophisticated products, such as ships, cars and computers, to cut its reliance on overseas suppliers. [Full Article]

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