AVIC I and AVIC II, China's two leading aviation manufacturers, are attaching growing importance to developing civilian aircraft in order to cash in on the country's booming commercial aviation market.

AVIC I, or China Aviation Industry Corp I, yesterday made a breakthrough in the regional aviation market by selling 60 MA60 turboprops and 30 ARJ 21 turbofan jets at the ongoing international air show in Zhuhai, South China's Guangdong Province.

The company also announced plans to develop a new turboprop aircraft with 35 to 70 seats.

"We hope to realize sales of 150 billion yuan (US$19 billion) in 2010 and become a Fortune 500 company by that time," said AVIC I President Lin Zuoming.

China National Aero-Technology Import & Export Corp (CATIC) yesterday bought 30 MA60 turboprops. CATIC handles more than 80 per cent of China's aviation-related exports.

The 50-seat MA60, or Xinzhou 60, was launched in 1998 and has already been delivered to Zimbabwe, Zambia, Laos and Congo.

"The MA60 has been serving scheduled flight networks in southern Africa. We are confident about its overseas market," said CATIC President Fu Shula.

But CATIC declined to reveal which countries the latest batch of MA60s would be sold to.

AVIC I is establishing an MA60 after-sales service centre, based in Zimbabwe, which will cover the whole of Africa.

Okay Airways, China's first private airline, yesterday signed a framework agreement to buy 30 MA60s, the largest single order for the aircraft in China.

"We are eager to explore feeder-line service markets in northeast, northwest and central China. We believe the MA60, being safe, reliable and economical, will help us better meet that target," said Okay President Liu Jieyin.

Okay hopes to finalize the purchase of the 30 turboprops within the next five years. The airline plans to finance the deal through bank loans and attracting private investment.

SE Leasing, 95 per cent owned by Shanghai Electric Group Co, yesterday signed a letter of intent to buy 30 ARJ21 jets.

The 70-100 seat ARJ21 is a turbo fan regional jet developed with Chinese technology. Launched in October 2000, the aircraft will be assembled in March next year in Shanghai. It will launch it first flight in March 2008 and enter commercial service in 2009.

Prior to yesterday's deal, four domestic companies had ordered 41 of the jets.

Helicopter market

AVIC II, or China Aviation Industry Corp II, yesterday announced the latest developments in the Z15/EC175 helicopter project. AVIC II and Eurocopter each have 50 per cent stakes in the project.

"We have completed the preliminary designing of the helicopter. It will launch its first flight on schedule in 2009," said AVIC II President Zhang Hongbiao.

The twin-engine six-ton helicopter is designed for civilian use and is expected to fill the gap in the two companies' current helicopter range between five and 10-ton models.

AVIC II expects to sell 800 of the helicopters over the next 20 years.

There will be two assembly lines for the helicopter, in Harbin, Northeast China's Heilongjiang Province, and Marignane, France.

Editor: Yan