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By Dai Yan (chinadaily.com.cn)
Updated: 2007-08-10 17:53

China Aviation Industry Corp I (AVIC I), the country's biggest aircraft maker, was approved to establish an airline company, in a move to expand its industrial chain, according to Gu Huizhong, deputy general manager of AVIC I.

Yet undecided is whether AVIC I will invite strategic investors and cooperate with domestic airlines, said Gu at a contract signing ceremony in Beijing August 8.

Chengdu Aircraft Industrial (Group) Co Ltd (CAC), a company affiliated with AVIC I, yesterday signed a US$300-million manufacturing contract with Vought Aircraft Industries Inc to produce Boeing 747-8 horizontal stabilizer parts and subassemblies.

The aircraft maker also plans to integrate its listed subsidiaries, and inject its civil aircraft manufacturing assets into Xi'an Aircraft International Corp.

Xi'an Aircraft International has announced it will raise some 6.6 billion yuan (US$873 million) by selling new shares to acquire major commercial aircraft business of its parent Xi'an Aircraft Industry (Group) Co.