CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Merged Chinese Aerospace Firm Aspires To Challenge Western Dominance

Merged Chinese Aerospace Firm Aspires To Challenge Western Dominance

by Mary Swire, Tax-News.com, Hong Kong

18 November 2008


The merging of two state aircraft manufacturers into one giant aviation company in China has officially taken place.

The amalgamation of the AVIC I and AVIC II companies, which took place on November 8, has created one giant aviation firm - China Aviation Industry Corporation (CAIC) - an entity which now parents 20 other listed aviation firms and 10 business units covering a diverse range of specialist aircraft.

It is now hoped that the newly formed company will generate CNY1 trillion (USD146bn) in revenue over the next 9 years, and it is soon expected to list on the country's stock market. The Chinese also hope that in the longer term, the company will become a direct rival to Boeing and Airbus, who currently dominate the market for large commercial aircraft.

In a bid to help it secure a grip on the global aviation market, CAIC also plans to acquire a western aerospace corporation before the end of the year after it narrowly missed out to a UK private equity firm in the pursuit of Stork NV, a Dutch aerospace company.

Earlier this month, Boeing, the world-renowned aircraft manufacturer, made the prediction that China will become the world's second largest aviation market over the next two decades and will require 3,710 more planes to meet the growing demand for air travel.

"China will continue to be the fastest-growing aviation center in the world, requiring 41% of the entire Asia-Pacific region airplane demand. This makes China the largest market outside of the US for new commercial airplanes," commented Randy Tinseth, Boeing Commercial Airplanes vice president of marketing, in a media statement.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »