Announces 600-Plane Deal With Chinese Company

Another American small plane manufacturer is looking to China for a significant chunk of its business. Liberty Aerospace announced Monday a 600-plane manufacturing agreement with China's Anyang Angel Aero Science and Technology Development Co., Ltd. (3A) worth $150 million.

Liberty also tells ANN 3A has already started construction of a new factory at the Anyang Airport in Henan to manufacture the Liberty XL-2. The new plant is tied to the contract to purchase and build 600 XL-2s for use in the Peoples Republic of China.

"We are extremely excited to work with Anyang Angel Areo and to have a role in the fast growing China aviation market," said Keith Markley, President and CEO of Liberty Aerospace.

With a base plan of 600 aircraft, 3A and Liberty Aerospace expect the number to be increased to 800 in anticipation of the opening of Chinese airspace in 2010.

The factory, when complete, will be capable of manufacturing 100 aircraft per year -- utilizing processes from carbon manufacturing to final assembly. Prior to factory completion, 3A will take delivery of aircraft built in the United States to meet the current demand for training.

Aircraft purchased and built by 3A will be used at Science and Technology University, and within the its current flying school located at Anyang. 3A is owned 50% by the Anyang Economic and Technology Development Company.

News of the Liberty agreement comes one week after Cessna announced it will build its upcoming Model 162 SkyCatcher in China, as ANN reported.

Liberty officials point out the planemaker's agreement differs from the Cessna deal, in that the Liberty contract is for aircraft built in the China facility to be used in the China aviation community, as opposed to an agreement to build in China for shipment to the United States.

Chinese-built XL-2s will meet full US Federal Aviation Administration Part 23 airworthiness requirements, as well as the Peoples Republic of Chinas Civil Aviation Authorities Certification requirements.

FMI: www.libertyaerospace.com