Avic I And Bombardier Aerospace Announce Long-Term Strategic Cooperation On Commercial Aircraft

oday, China Aviation Industry Corporation (AVIC I) and Bombardier Aerospace announced an agreement for a new, long-term strategic cooperation in the five-abreast, 90- to 149-seat commercial aircraft market. Founded on a well-established history, the two parties have reached a memorandum of understanding (MOU) that will further develop the relationship.

With this long-term strategic cooperation agreement, Bombardier intends to participate in the development of AVIC I’s five-abreast ARJ21-900 aircraft – a further development of the ARJ21 series of airplanes – by helping to enhance the competitiveness of the ARJ21-900, and exploring potential commonality between the ARJ21-900 and Bombardier CSeries aircraft programs. Both parties expect the outcome of this collaboration to result in mutually beneficial cost reductions and increased production efficiencies for these aircraft programs.

“In recent years, AVIC I and Bombardier Aerospace have worked together to establish a strategic business relationship that allows us to effectively evaluate current projects, identify areas of mutual collaboration and explore future endeavours that will further develop this relationship of cooperation,” said Mr. LIN Zuo Ming, President, AVIC I.

“Now, with the implementation of this long-term strategic cooperation, we will be able to move forward more effectively with our vision to develop the most competitive commercial airplanes. The ARJ21-900, which is a derivative of the ARJ21-700, will address the needs of regional airlines looking for a five-abreast solution to serve the upper end of the regional aircraft market. AVIC I intends to launch the ARJ21-900 in 2007, with a targeted date of entry into service in 2011,” added Mr. Lin.

The commitment of AVIC I and Bombardier Aerospace to this strategic cooperation is evident. Bombardier intends to invest $100 million US in the ARJ21-900 project, when launched, and provide technical assistance towards the development of the aircraft. Furthermore, in pursuit of its goal to become a major international Tier 1 structural supplier, AVIC I plans to invest $400 million US for research and development, construction of new facilities and equipment for the CSeries aircraft program, should it be launched.

The MOU, subject to the execution of definitive agreements, is a natural extension of the well-established relationship between AVIC I and Bombardier Aerospace and includes AVIC I’s Xian unit, which manufactures components for the Bombardier 415 amphibious aircraft. In addition, its Shenyang Aircraft Corporation (SAC) unit supplies components for the Q-Series aircraft and will be a structural supplier on the CSeries aircraft program.

“I am pleased with this collaboration between AVIC I and Bombardier Aerospace,” said Mr. Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace. “It is an important development for both companies. With the implementation of this agreement, both AVIC I and Bombardier are expected to experience long-term benefits related to the exchange of technical expertise and the expansion of our market potential, both in the higher end of the regional aircraft market and lower end of the mainline market”, added Mr. Beaudoin.

“For regional airlines, the addition of the ARJ21-900 to the market offering will complement our Bombardier CRJ family of aircraft,” continued Mr. Beaudoin. “The CRJ family has the lowest operating costs in the industry. For customers who are looking for a five-abreast regional aircraft with increased range, the ARJ21-900 will be the clear choice over our competition,” concluded Mr. Beaudoin.