China's aviation makers likely consolidate for large jets

China Aviation Industry Corporation I (Avic I), which in 2007 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 the 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.

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. ( Xinhua )

Subscribe to Trend in Google News! Subscribe
National Depository Center announces tender on purchase of security system
National Depository Center announces tender on purchase of security system
Azerbaijani ship embarks on maiden voyage after overhaul
Azerbaijani ship embarks on maiden voyage after overhaul
Digitalization - most important tool for ensuring transparency of transit traffic, says Azerbaijani minister
Digitalization - most important tool for ensuring transparency of transit traffic, says Azerbaijani minister
Loading Bars
Delta airliner makes emergency landing in Athens
Flu expected to return in Turkey, in hand with COVID-19 surge
56 new COVID-19 cases recorded in Kyrgyzstan
Azerbaijani lands liberated from Armenian occupation thanks to leadership of President Ilham Aliyev - Turkish ambassador (PHOTO/VIDEO)
Azerbaijani ecology ministry opens tender for its administrative office repair
Chinese tech execs support 'common prosperity', helping SMEs at internet summit
Iran's CBI shares amount of currency sold at NIMA exchange rate
Azerbaijan victorious in 44-day war thanks to strength of its army, people - Turkish military expert
Georgia reports 1,132 coronavirus cases, 2,956 recoveries, 30 deaths
Israeli troops kill four Hamas members in West Bank raids
Iran's Ramin TPP increases electricity generation
Azerbaijani gymnast wins gold medal at Grand Prix in Hungary (PHOTO)
Azerbaijani Defense Ministry presents a weekly review (VIDEO)
President Ilham Aliyev will address nation on occasion of Remembrance Day on September 27
At least 50 killed in fighting for Yemen’s Marib: Military sources
All countries based on truth, justice rejoice over Azerbaijan's victory - Iranian ambassador (Exclusive)
Inflation rate in Iran soars
National Depository Center announces tender on purchase of security system
Uzbekistan shares COVID-19 data for September 26
Germans vote in close election to decide Merkel successor
Georgia reveals its top trading partners in total external trade turnover
Airport closed as La Palma volcano eruption intensifies
At least 3 dead in U.S. passenger train derailment
LG Electronics to buy stake in Israeli auto cybersecurity firm
2,192 more COVID-19 cases reported in Kazakhstan
USAID eyes co-op with Turkmenistan to implement e-commerce campaigns
Georgia reduces onion import
Israel's PM to meet UAE, Bahrain ministers in New York
France to double COVID-19 vaccine doses for poorer countries
Iran, Venezuela sign oil export deal
UN Secretary met with Azerbaijani FM
G20 summit on Afghanistan planned on September 28
Israeli PM says to meet Gulf ministers in U.S.
Germany set to vote in most unpredictable elections in years
Putin and Erdogan planning to discuss Syria in Sochi
Turkey reports 26,145 daily COVID-19 cases
New Beijing airport handles nearly 39 million passenger trips
Libya's presidency seeks consensus on election law
Azerbaijan to launch e-platform for studying practices of doing business
Azerbaijani FM meets with colleagues from Chad and Venezuela (PHOTO)
Greece considers abolishing visa requirements for passports of Kyrgyz citizens
Bishkek, Tbilisi may establish twining ties, Cholpon-Ata and Batumi too
Azerbaijani FM talks bilateral issues with his Serbian colleague
Azerbaijani FM meets with President of ICRC (PHOTO)
Quad leaders press for free Indo-Pacific, with wary eye on China
Iran to examine condition of Changuleh oil field
Azerbaijani ship embarks on maiden voyage after overhaul
Azerbaijani judoka wins gold medal in Zagreb
Azerbaijani FM meets colleagues from NAM at 76th session of UN General Assembly
Huawei's chief financial officer back in China
Turkish Airlines expands its flight network
Voting begins for Iceland's parliamentary election
Azerbaijan continues exercises with combat shooting jointly with Turkey in Nakhchivan (PHOTO/VİDEO)
Iran's Energy Exchange announces products to be on sale September 26
Kazakhstan boosts trade with Sweden despite global pandemic
TEKNOFEST festival to be organized in friendly, fraternal Azerbaijan - Turkish president
Azerbaijan to limit traffic on Remembrance Day
Azerbaijani FM talks bilateral issues with his Kyrgyz colleague (PHOTO)
Britain expected to ease visa rules as truck driver shortage bites
Iran’s Bahar Azadi gold coin price dips
Azerbaijan negotiating on UNESCO Mission's visit to liberated territories - minister
Meeting of Halk Maslahaty of Turkmenistan's Milli Gengesh held in Ashgabat
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,099 more COVID-19 cases, 2,404 recoveries
Iran reveals COVID-19 data for September 25
Azerbaijani President Ilham Aliyev congratulates Turkmen counterpart
OIC Commission adopts declaration on results of mission to Azerbaijan
OIC experts visiting Azerbaijan's Ganja to view consequences of Armenia's missile strikes (PHOTO)
Turkmen company intends to export polypropylene yarn
Iran to boost crude oil extraction in Ilam Province
Digitalization - most important tool for ensuring transparency of transit traffic, says Azerbaijani minister
Azerbaijan's Azerpambig announces tender on purchase of spare parts for tractors
Georgia shares data on COVID-19 cases
Uzbekistan reveals number of vaccinated citizens as of September 25
Concentrix enters Georgian market
Weekly review of Azerbaijani precious metals market
Number of transactions at Uzbek stock exchange decreases
Kazakhstan's joint venture to purchase dosing pump through tender
Armenia, as a country in strategic future, doomed to disappear - Russian historian
Over 22,000 new Covid cases registered in Russia for first time since August 14
Iran to take part in exhibition on reconstruction of Azerbaijan's Karabakh
Weekly review of main events in Azerbaijan's transport sector
Iran against any occupation and aggression – Iranian ambassador to Azerbaijan
UzAuto Motors restores manufacturing of several Chevrolet models
Profit of Georgian insurance companies announced
Int'l organizations should investigate Armenia's environmental terror - MP
Azerbaijan MHI State Agency opens tender to acquire MS licenses
Tension in relations between Iran and neighbors - serves enemies, says Iranian MP
Weekly review of Azerbaijani currency market
Uzbekistan shares COVID-19 data for September 25
Kazakhstan’s Ulba Metallurgical Plant opens tender to attract shipment services
Iranian currency rates for September 25
IFC supports National Bank of Georgia in amending Corporate Governance Code
IFC’s cooperation with National Bank of Georgia to help develop green bonds
Eni Turkmenistan Ltd opens tender for supply of materials
Azerbaijan notes increase in oil prices
OSCE MG co-chairs welcome meeting of Azerbaijani, Armenian FMs
Iran plans to increase exports to Iraq
Azercell Mobile Customer Care visits Shusha! (PHOTO)
Uzbekneftegaz develops new well, receives natural gas
All news