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Fri, Sep 23, 2005

China's AVIC I Wants In

Country's Biggest Plane-Maker Wants Piece Of Huge Commercial Market

The biggest aircraft maker in what's expected to become the biggest airline market says it wants to compete with the likes of Boeing and Airbus for a piece of the global aircraft manufacturing market. China's Aviation Industry Corporation I wants in.

"AVIC I is the biggest aviation manufacturer company in China," said Tang Xiaoping, assistant president of the Beijing-based company. Our goal is to reach the level of international big aviation companies in the next 20 to 30 years." Tang was quoted by AFP.

Right now, AVIC I makes engines and weapons systems solely for the Chinese military. But Tang figures there's plenty of cross-over technology that can be brought to bear on the manufacture of civil aircraft.

"One of our goals for the next 20 to 30 years is we would like to have sales of civilian aviation products equivalent to that of other aviation products sales... and we would like our domestic and international markets to be equivalent," Tang said at Aviation Expo/China 2005 in Beijing.

"In the very beginning of this project, people asked me this question. I said then 'If we cannot get 50 percent of the market, we won't start this project," Tang said. "Today I still believe we can achieve this goal within the next 20 years."

It could initially be an uphill fight for AVIC I, given that Boeing now has a 63-percent share of the Chinese civil aviation market. Airbus has 28-percent.

But undaunted, AVIC I is developing the ARJ21 -- short- to medium-haul civil aircraft capable of carrying 70- to 90-passengers. It's primarily being designed for domestic Chinese flights.

FMI: www.avic1.com.cn/English/EnglishIndex.asp

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