Cessna Aircraft Co. agreed to manufacture business jets and other aircraft in China, based on two strategic agreements with Aviation Industry Corp. of China (AVIC). In addition to business jets, the two agreements form the basis of an effort to produce several models of business jets, as well as utility single-engine turboprops and single-engine piston aircraft.
The first agreement between AVIC and Cessna outlines how the partners will form future joint ventures to develop general aviation businesses in China, including establishing an aircraft service network in China.
The second agreement specifies the terms on which Cessna Aircraft Co., AVIC Aviation Techniques Co. Ltd. (AAT), and the Chengdu provincial government will establish a venture to produce mid-size Cessna business jets and an new product that it did not describe, for the business jet market in China.
Cessna and AVIC aim to launch joint venture companies within the year to implement the initial phase of their agreements.
“China’s market potential is tremendous and therefore represents an exciting opportunity for Cessna,” offered Scott Ernest, Cessna president and CEO. “China recognizes general aviation offers the foundation to support its national air transportation needs for the future. These agreements will help take the industry to the next level.”
Cessna produces business jets, single-engine utility turboprop planes, and single-engine piston aircraft, and it supplies aftermarket parts, maintenance, inspection, and repair services to that market.
AVIC is a state-owned concern founded in 2008 that manufactures military and commercial aircraft.