China aircraft maker sells 5 self-developed jets to GE

ZHUHAI, China, Nov 4 - China's main aircraft maker has sealed an estimated $750 million deal to sell five Chinese-designed jets with an option for 20 more to U.S. conglomerate General Electric's aircraft leasing arm, in China's first major overseas deal for the aircraft.

The government-backed Commercial Aircraft Corporation of China (CACC) signed an official agreement with GE Commercial Aviation Services on the ARJ21 jets on Tuesday at the Zhuhai airshow in southern China, the companies said in a statement.

"We have five firm orders and 20 options. The options are not going to be exercised at this point," Andre Robert, head of marketing for GE Aviation told reporters.

GE Commercial had signed a preliminary agreement in March with CACC to buy five ARJ21 jets with an option to buy another 20.

Incorporated in Shanghai earlier this year by the merger of China's two state aircraft makers, AVIC I and AVIC II, CACC became the country's first maker of large-sized passenger aircraft.

With an aim to eventually compete with industry giants Boeing and Airbus in the global market, CACC already has more than 100 orders for the ARJ21 jet, unveiled last December and due for commercial deliveries from the third quarter of 2009.

But most of the orders are from domestic carriers.

General Electric and Parker Hannifin Corp are among companies which supply parts for the ARJ21 jet.