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Chinese Companies to Produce New Small Planes
Three Chinese companies will cooperate with Fairchild Dornier Aerospace, an American-German joint venture, in developing and producing new 32-seat jet planes.
A letter of intent was signed recently among Hainan Airlines Group, China No.1 and No.2 aerospace industry conglomerates, and Fairchild Dornier Aerospace in Haikou, capital of Hainan Province.
According to the letter of intent, the four partners will contribute investment to a new joint venture that will be set up in accordance with international practices so that profits and risks will be shared.
It is the first time that a Chinese air transport company, Chinese aerospace makers and an overseas plane builder joined hands in developing and producing small planes.
Along with the fast economic growth and expansion in air transport, market demand for small planes have been increasing in China. It is estimated that in the next 10 years, the country's demand for small planes stand above 100.
In order to start off the new joint venture in time, representatives of Hainan Airlines Group have placed orders to purchase 10 Dornier planes, while the American-German joint venture also promised to be responsible for overseas marketing of planes made by the new joint venture.
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