According to reliable sources, details concerning the creation of China's new large aircraft maker have received government approval and the firm is expected to start operations soon, Shanghai Securities News reported on March 31.
The new firm will be called China Commercial Aircraft Co. Ltd and will have registered capital of 19 billion yuan (US$2.7 billion), less than earlier reports of 20 billion yuan.
The central government and the Shanghai municipal government will be the largest shareholders, injecting 6 billion and 5 billion yuan respectively. Shanghai Aircraft Manufacturing Factory, China Aviation Industry Corporation I (AVIC I) First Aircraft Institute and Commercial Aircraft Co. Ltd will invest a total of 4 billion yuan; and AVIC II, Baosteel Group, Chinalco, and Sinochem will invest 1 billion yuan each.
The term large aircraft refers to passenger planes with more than 150 seats and weighing over 100 tons. Currently, the international commercial aviation market is dominated by Boeing and Airbus. The Chinese government last year approved a plan to build the first homegrown large aircraft before 2020.
For more details, please read the full story in Chinese (http://www.cnstock.com/paper%5Fnew/html/2008-04/01/content_61005264.htm).
(China.org.cn April 1, 2008)
