HomeChina Stock News China Eastern to launch a JV with Chinese aircraft manufacturer
China Eastern to launch a JV with Chinese aircraft manufacturer
Written by Administrator
Wednesday, 29 August 2007
BEIJING, Aug. 29 (InfoChina) – China Eastern Airlines (NYSE: CEA, HK: 0670, SH: 600115) has signed agreement with China Aviation Industry Corp I (AVIC I), a state-owned aircraft manufacturer, to establish a joint venture in a city in west China for flying feeder line flights, according to Xinhua-run Shanghai Securities News.
China Eastern and AVIC I will share equities of the joint venture on a basis of 40:60, but the specific investment is not yet known, as reported by Shanghai Securities News.
The joint venture will use AVIC-made aircraft, namely Shenzhou 60, able to transport 52-60 passengers, to serve the flights.
China Eastern is likely to extend its feelers to feeder line flights relying on the joint venture, experts believe.
China has only 77 aircrafts flying feeder lines, far lagging behind the U.S., which has 3,200 aircraft in service.
As a large state-owned industrial group, AVIC I develops and manufactures fighter, fighter bomber, bomber, trainer aircraft and so on. It also provides accessories for Airbus and Boeing. (Edited by Lin Fanjing,
)
China Stock News 
