MOU To Develop Chinese Regional Plane May Hold Promise For CSeries

The big deals continued Monday from Paris. China Aviation Industry Corporation (AVIC I) and Bombardier Aerospace announced a memorandum of understanding (MOU) to develop a new, long-term strategic cooperation in the five-abreast, 90- to 149-seat commercial aircraft market.

Under terms of the MOU, Bombardier intends to participate in the development of AVIC I's five-abreast ARJ21-900 aircraft -- possibly including commonality between the ARJ21-900 and Bombardier CSeries aircraft programs.

"In recent years, AVIC I and Bombardier Aerospace have worked together to establish a strategic business relationship that allows us to effectively evaluate current projects, identify areas of mutual collaboration and explore future endeavours that will further develop this relationship of cooperation," said AVIC I President Lin Zuo Ming.

Bombardier intends to invest $100 million US in the ARJ21-900 project, when launched, and provide technical assistance towards the development of the aircraft. Furthermore, in pursuit of its goal to become a major international Tier 1 structural supplier, AVIC I plans to invest $400 million US for research and development, construction of new facilities and equipment for the CSeries aircraft program, should it be launched.

"I am pleased with this collaboration between AVIC I and Bombardier Aerospace," said Mr. Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace. "It is an important development for both companies. With the implementation of this agreement, both AVIC I and Bombardier are expected to experience long-term benefits related to the exchange of technical expertise and the expansion of our market potential, both in the higher end of the regional aircraft market and lower end of the mainline market."

FMI: www.avic1.com.cn, www.bombardier.com