US aircraft maker Boeing signed up to US$500 million (RMB3.8 billion) worth of contracts with Chinese suppliers to make commercial aircraft components, including components for its Boeing 747-8 Intercontinental Passenger and Freighter, China Business News reported. The recipients are the China Aviation Industry Corporation I (CAIC-I)-affiliated Xi’an Aircraft Industry Group and Chengdu Aircraft Industrial Group and CAIC-II-affiliated Hafei Aviation Industry Co. Boeing began forming partnership with Chinese aircraft producers in the mid-1970s, and it currently has US$2.5 billion (RMB 19 billion) worth of Chinese supplier contracts.

The prototype of the domestically made ARJ (Advanced Regional Jet) 21 will make its debut at an aero show in Shanghai next month, the Xinmin Evening News reported. The jet, which is scheduled to make its first trial flight next March, is still on the assembly line at the China Aviation Industry Corporation’s Shanghai Aircraft Manufacturing Factory. The Shanghai factory is expected to make up to 50 aircraft a year. The license for commercial flights is expected to be issued in September 2009, at which point CAIC will be ready to deliver to buyers. The corporation has received over 40 orders for the ARJ. The jet comes in both 70 and 100 passenger capacity versions. Separately, the Chinese government has vowed to develop trunk line planes within five years.

The Chinese aviation industry reported a net profit in May on the back of a 19% climb in passengers carried and a 16% surge in air cargo volumes, China Economy reported. According to official statistics, revenues across all Chinese carriers increased 11% to RMB21.1 billion in May, against operating costs of RMB19.9 billion. Carriers flew 15.5 million passengers and 306,000 tons of cargo. Net profits were also boosted by fuel surcharges, which transferred some fuel costs to passengers, and a reduction in taxes on flights over 800 kilometers from RMB100 to RMB80 per ticket, and on shorter flights from RMB60 to RMB50 per ticket.

The world’s third largest aircraft maker, Canada-based Bombardier, has teamed up with China Aviation Industry Corp 1 (AVIC 1) to develop medium-sized regional jets, the China Times reported. According to the contract, Bombardier will invest US$100 million into AVIC 1’s ARJ21-900 program. The planes, which can carry up to 105 passengers for 2,225 km, are expected to be in service by 2011. In exchange, AVIC 1 will invest US$400 million into Bombardier’s C-series program. The sharing of common components is expected to help both sides reduce costs and improve production efficiency.

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