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Tue, Mar 13, 2007

China Wants In On Large Airliner Market

Plans To Develop Homegrown Plane By 2020

Boeing and Airbus may be about to get some competition at the big end of the market. The Guardian Unlimited reports China's state-run media has announced a government plan to develop its own large airliners by 2020.

With an exploding domestic economy, China is spending billions on imported airliners. The announcement by the Xinhua news agency of an accelerated home-grown large-airliner program cited the national prestige associated with the venture. A similar agenda is driving China's manned space program.

China has grown dramatically in recent years as a supplier of aircraft parts for foreign companies. Embraer now has a factory there, and Airbus plans to build A320's there.

Recent sales surges by Boeing and Airbus have a lot to do with the staggering need for more planes for Chinese airlines. Recognizing the growth of China's aviation market, the FAA recently opened an office in Shanghai.

Next year, test flights will begin for the ARJ21 (shown above), a small jet built by the same Chinese consortium planning to develop the new, larger jet. Foreign suppliers have provided support for the ARJ21, and there are already 70 orders from Chinese airlines.

That provides a needed foundation for growth into the market for larger planes, said Liu Daxiang, deputy head of science and technology development at China Aviation Industry Corporation I, the consortium tasked with building the ARJ21.

"We are now fairly well conditioned for making large aircraft," said Liu Daxiang, deputy head of science and technology development at the aircraft manufacturers' consortium China Aviation Industry Corporation I, which will build the plane.

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

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