Aviation Industry Corportation of China (AVIC)

"We are just a partner but no competitor. We are committed to develop aviation industry and pursue business success, to participate in global aviation industry chain and regional economy development circle,..."
                                                                      _Lin Zuoming, President of AVIC              

Aviation Industry Corporation of China was founded on November 6, 2008 through restructuring and consolidation of China Aviation Industry Corp I (AVIC I) and China Aviation Industry Corp II (AVIC II). AVIC's business units cover Defense, Transport Aircraft, Engine, Avionics and Systems, General Aviation, Aviation Research, Flight Test, Trade Logistics, Assets Management, Finance Services, Engineering Planning and Construction, Automobile and etc. Currently, AVIC owns nearly 200 member companies, over 20 listed companies and approximately 400,000 employees. On July 7, 2011, AVIC  ranked 310 among the newly published Fortune Top 500 enterprises. By the end of June, 2011, AVIC's total assets reached ¥500 billion. AVIC sticks to the principle of 'Technology spin-off from military to civil and to achieve synergy development between military and civil businesses', commits itself to commercial transportation industry and actively participate in the development of international aviation programs.

Financial/Strategic Partners
In 2009, AVIC signed strategic cooperation agreements with 15 domestic banks, gaining a total of 482 billion RMB credit volume of intention. Since the establishment of AVIC in 2008, it has maintained a 2-digit number growth in 2 consecutive years. The total revenue of 2009 reached 191 billion RMB with growth of about 14.4% from the previous year.

History of AVIC

1951 - April 17, Bureau of Aviation Industry was established
1954 - July 3, the first trainer produced by New China CJ-5
         - August 18, engine M-11 manufactured by Zhuzhou Aero Engine Factory
1956 - September 8, the first jet aircraft J-5 produced and certified by the authority.
1958 - July 26, the first jet trainer JJ-1 independently-designed and produced by China
1963 - September 23, the first supersonic jet fighter manufactured in China- J-6.
1982 - September 26, the large passenger aircraft Y-10 made its first flight successfully.
1988 - Ministry of Aerospace Industries was established
1993 - Aviation of Industries of China was established
1998 - March 23, third generation of fighter with independent intellectual property right - J-10 made its first flight successfully.
1999 - July 1, Aviation Industries of China was restructured to Aviation Industry Corporation I and II.
         - October 3, the trunkliner jointly produced by China and US-MD-90-30 made its first flight successfully in Shanghai. It was certified by the FAA on October 28.
2000 - June, MA60 was award type certificate by Chinese civil aviation airworthiness authority.
         - August 13, the first MA60 aircraft was delivered to Sichuan Airlines.
2007 - February 27, J-10 received the 2006 Outstanding Award for National Science and Technology Progress on the National Science and Technology Award Conference.
         - December 21, the new regional aircraft ARJ21-700 made its first flight successfully.
2008 - October 10, new type of independently produced turboprop regional aircraft MA600 made its first flight successfully in Xi'an.
         - November 6, the Aviation Industry Corporation of China (AVIC) was established after reorganization, setting out on the journey of new aviation, great aviation and strong aviation.
2009 - September 1, China's self-developed large passenger aircraft C919 started its nose prototype production in AVIC.

Supplier of Transportation Capability: Aviation Transportation Products



Passenger Aircraft: MA60 (turboprop regional passenger aircraft); MA600, ARJ21 (jet regional aircraft); ERJ-145 (turbofan regional aircraft).

Transport Aircraft: Y-7, short/medium-range regional aircraft; Y-8, first generation medium-sized/medium-ranged multipurpose transport aircraft.

General Aircraft: N-5, agriculture/forestry aircraft; Y-12, light twin-engined multipurpose transport aircraft, the first type of Chinese civil aircraft certified by international airworthiness authorities (CAA in the UK and FAA in the US).

Civil Helicopter: AC313, 13-ton civil helicopter; H425, new generation of multipurpose helicopter.

Transportation Services: Joy Air Co, Ltd, co-founded by AVIC and China Eastern, is the only airlines that operates 100% China homemade aircraft. It is based in the west of China and positioned to provide regional transportation.

Domestic/International Orders:
In late 2010 AVIC International signed an agreement with Commercial Aircraft Corp. of China (COMAC) to purchase 10 ARJ21 to market to international carriers. Most of current orders for the ARJ21 are from domestic carriers, but Lao Airlines, which ordered two aircraft, will likely be the ARJ21's foreign operator.

AVIC commits itself to fulfilling its social responsibility of providing extensive job opportunities. More than 6,000 graduates from universities are recruited in China each year. Technician and management personnel who are performing outstandingly will be provided opportunities for further eduction overseas; and nearly 100 employees have been funded to study in foreign well-known universities to obtain their degrees.

In my opinion, AVIC somewhat is a successful Chinese domestic aircraft manufacturing corporation, but it has not yet secured its place in the international market. If more countries such as China start to independently manufacture their own civil and military aircraft and produce them efficiently, then in the long run large companies such as Airbus, Boeing, GE, etc, will foresee a negative economical impact as a result.