CHINA: Chinese airframe makers to be restructured

The businesses of AVIC I and AVIC II, the country’s two leading Stateowned aviation manufacturers, are likely to be restructured and consolidated to realise the country’s ambitious plan of developing a homegrown large commercial aircraft. “A possible plan is to consolidate commercial aircraft manufacturing businesses of the two enterprises and establish a new firm, which […]


The businesses of AVIC I and AVIC II, the country’s two leading Stateowned aviation manufacturers, are likely to be restructured and consolidated to realise the country’s ambitious plan of developing a homegrown large commercial aircraft.

“A possible plan is to consolidate commercial aircraft manufacturing businesses of the two enterprises and establish a new firm, which will become a shareholder in a company taking charge of assembling the large airplane,” an official with China Aviation Industry Corp II (AVIC II) told China Daily.

The State Commission of Science, Technology and Industry for National Defence is working on the restructuring plan, which will await approval from the State Council and the National People’s Congress, the official said. A decision is expected by March.

The aircraft will be assembled in Shanghai, with the nose, fuselage and tail sections manufactured in other provinces.

AVIC I manufactures the ARJ 21, China’s indigenously developed regional jet with 70-100 seats, and the 50-seater turboprop MA60. AVIC II is the country’s only manufacturer of military and commercial helicopters. It also manufactures the 50-seater ERJ 145 regional jet in partnership with Brazilian plane maker Embraer.

Both companies have been supplying components to Boeing and Airbus. The two companies are a result of an industry overhaul that split the former China Aviation Industry Corp into thetwo main blocs in 1999.