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UPDATE 1-China's AVIC talking to engine makers after GE deal

Published: 19 Nov 2009 20:30:56 PST

BEIJING, Nov 20 - Aviation Industry Corp of China, fresh from forming a joint venture with General Electric Co, is in cooperation talks with other leading aircraft engine makers, the head of the state-owned plane maker said on Friday.

Lin Zuoming, the firm's president, declined to name the firms, citing non-disclosure agreements.

"Going it alone won't work and is not in line with the global trend," Lin told Reuters on the sidelines of a conference.

"To be part of the global aviation industry is one of our key strategies," he added.

AVIC signed a preliminary agreement with GE on Sunday to form an avionics joint venture to target China's booming commercial aircraft market.

The initial focus of the venture would be to develop equipment for China's planned C919 passenger jet, which will have at least 150 seats.

Government-backed Commercial Aircraft Corporation of China (COMAC) has said it expects the C919 to have its first test flight in 2014 with deliveries to customers starting in 2016.

Lin's firm supplies most of the components for the C919. Lin himself is a vice-chairman of COMAC.

China would be "totally open" to foreign capital and expertise and would not be protectionist in developing the C919, Lin said in his remarks to the conference.

The development of the C919 has been progressing very smoothly and there should be no problem delivering the plane on time, the aviation veteran said.


Source: Reuters

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