Feb. 16, 2012 (China Knowledge) - Commercial Aircraft Corp of China Ltd, or COMAC, a leading aircraft manufacturer in the country, yesterday inked an agreement to acquire 20 C919 aircraft orders from BOC Aviation Pte Ltd, a unit of Bank of China<601988
>, at the Singapore Airshow 2012 from Feb. 14 to Feb. 19.
The new deal brought the C919 orders of COMAC, today named AVIC Landing Gear Advanced Manufacturing Co, to 235 units, said a person familiar with the matter. Presence at the signing ceremony were Chen Si Qing, chairman of BOC and executive VP, COMAC chairman Jin Zhuanglong, Robert Martin, managing director and CEO of BOC Aviation and Wu Guanghui, the VP and Chief Designer of the C919.
Ten airlines, including Air China Ltd<601111
>, China Eastern Airlines Ltd<600115
><CEA> and China Southern Airlines Co<600029
>, have ordered a total of 215 C919 from COMAC. Foreign airlines like RyanAir has also inked a MOU to acquire C919 with financing facilities provided by Chinese banks. The C919 aircraft is expected to start trial flight in 2014 and be delivered starting from 2016.
COMAC aims to have as many as 300 C919 orders by the end of this year, said Chief Designer Wu Guanghui. In addition, COMAC expect to ink an agreement with Bombardier Inc, a Canadian aircraft manufacturer, within two months for jet development, said Vice President Han Kecen.
Many more orders are expected to come from the Chinese customers with business jets that are seeing a potential growth in spite of slower global economy. For this market, deals signed include Minsheng Financial Leasing Co., Ltd’s agreement to buy three Embraer’s Lineage 1000 ultra-large executive jets, first sale of two Piaggio Avanti II, and other major manufactures.
With growing aviation industry and strong increase in Chinese outbound travel market the demand for more civilian airports, MRO and business travel related services are expected to see more foreign companies entering China.
Industry cluster facilities catering to the aviation industry are gradually integrated into major industrial parks across China. Most notably is the Aviation Park located in Beijing E-Town
in Daxing District in southern Beijing
. Its joint partner is the China Aerospace Science and Technology Corp that creates a 2 km sq of area for the high-tech aerospace-equipment manufacturing. With the coming second airport in the area Beijing E-Town
will attract plethora of aviation related companies to set up operations. Funds size in the billions are set aside to support and finance both local and foreign industry’s innovative and advance companies.
China supports aviation in accord with its 12th Five Year Plan, the period between 2011 and 2015, where financial support and incentives be granted to the general aviation, aero-parts manufacturing, the training and skills upgrading for its pilots and engineers, and medical air-evacuation. The number of civil airports is expected to grow from 156 in 2009 to 244 by 2020.