China Aviation Industry Corporation I (AVIC I) has separated the civilian and military work of subsidiaries Shenyang Aircraft (SAC) and Chengdu Aircraft (CAC), a move that it hopes will make it easier for Western firms to do business with China's civil aircraft manufacturing sector.
An official in AVIC I's marketing and international co-operation department in Beijing says a ceremony was held in Beijing on 28 August at which AVIC I president Lin Zuoming formally announced the formation of Shenyang Commercial Aircraft and Chengdu Commercial Aircraft.
These two companies now house the respective civil aviation assets of SAC and CAC, says the official, adding that Shenyang Commercial Aircraft is separate to SAC and Chengdu Commercial Aircraft is separate to CAC, and each has its own top management and board.
The official says Chen Liangju, previously vice-president of CAC, is now president of Chengdu Commercial Aircraft and Pang Zhen, previously vice-president of SAC, is now president of Shenyang Commercial Aircraft.
In addition, Wang Guangya has been promoted from vice-president to president of CAC, replacing Luo Ronghuai, who left in June to go to Shanghai to be president of AVIC I Commercial Aircraft, maker of the ARJ21 regional jet.
In attendance at the event were Airbus China president Laurence Barron, Boeing China vice-president Ken Yata and Bombardier China head Zhang Jianwei, says the AVIC I official, adding that the Western representatives expressed their support for AVIC I's decision to separate military and civil aircraft manufacturing into separate businesses.
At has often been difficult for Western aircraft companies to transfer technology to China because the Chinese aircraft makers have generally made both military and civil aircraft.
The AVIC I official also confirms that Xian Aircraft's listed civil aircraft business, Xian Aircraft International, plans to issue more shares to raise capital to buy stakes in the newly formed Shenyang Commercial Aircraft and Chengdu Commercial Aircraft.
"That is the next thing in discussionand that is the direction it is going I would say," says the official.
Source: Flight International
