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China Aviation Company Research - Xi'an Aircraft International Corporation (XAIC)
China Market Report, May 2008, Pages: 30
Global and China's aviation industry is in a rapid booming period, therefore, the demands of aircraft have been increasing significantly. In 2006, China's civil aircrafts were 952. According to China Aviation Research and Development centre’s report that by 2026, the total number of civil aircraft will reach 3,731 in China.
On February 2008, Xi'an Aircraft International Corporation (XAIC) completed non-public offering. The company's business architecture has changed fundamentally, from aircraft parts maker to an aircraft manufacturer for civil and military aircrafts, also, as a key base for domestic subcontractors and aircraft parts manufactory.
Military aircraft is the main contributor for the company’s business, which took more than 70 per cent of total income. In terms of the rapid growth of other business sections, the military aircraft section is expected to keep stability and, the potion of the total income will decline gradually between 2008 and 2010.
Civil aircraft business, the “Xinzhou60” aircraft has recognized by market and contracted 126 orders; the development of “Xinzhou60” series has on the company agenda, which is based on the current “Xinzhou60” technology. The”Xinzhou60” series will help company to develop the turboprop aircraft for the high-end market of feederliner.
Parts business, there are 181 ARJ21 existed orders, 90 per cent of ARJ21’s parts are produced by XAIC. After the increasing issue in stock in 2007, XAIC integrated the international subcontracting and civil craft’s parts from Chengdu Air company and Shenyang Air Company. After the integration, XAIC transformed not the only scale effect of the international subcontracting, but also for the technique and resources to support the massive production of ARJ21, another important point is to lay the foundation for the collaboration of large aircraft for China aviation industry in the future. There will be a 30 per cent growth of subcontracting is expected from 2008 to 2010.
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