Jumbo plane project seeks global partners
Chinanews, Shanghai, Mar. 30 – China intends to invite global cooperative partners to participate in its, which is an operational mode widely adopted by large aviation manufacturers in the world, the Shanghai Securities Journal reported.With global partners, China hopes that domestic and foreign airplane makers can make joint investment and share the potential risks together in the project, an authoritative person said.
Work related to the project is already well underway. The China No.1 Aviation Industry Corporation (AVIC I) and the China No.2 Aviation Industry Corporation (AVIC I1) will hopefully take part in the project. The jumbo plane project planners also hope to attract some global partners to make their investment in it, too. This is in line with the global trend in aviation industry, the person said.
The global cooperative business partnership is a very popular mode in today’s aviation industry. It is an even more sophisticated cooperative mode than subcontract production. By subcontract production, aviation manufacturers transfer some of the spare parts production to other firms at a certain price. The firms that make the spare parts are only responsible for the production, and don't have to take any risks involved in the project. On the other hand, cooperative partners will participate in the whole project from the very beginning. As investors in the project, they will bear the potential risks. Of course, when the project starts to make money, they can also take their part of the profits, an insider in aviation manufacturing industry said.