Bombardier, China's AVIC I to Cooperate on Regional Jets

In an agreement announced at the Paris Air Show on June 18, 2007, Bombardier agreed to cooperate with China's AVIC I group of aerospace enterprises to develop 90-149-seat jet airliners. Bombarider will invest in developing China's ARJ21 regional jet airliner. In return, AVIC I will help Bombardier develop its proposed C-Series regional jet family. Credit: Bombardier

PARIS (AP) -- China Aviation Industry Corp. I said Monday it had agreed with Bombardier Aerospace to cooperate on developing 90- to 149-seat commercial airplanes.

The deal involves AVIC I's own five-abreast ARJ21-900 aircraft and Bombardier's proposed C-Series aircraft.

State-owned China Aviation Industry Corp. I, or AVIC I, plans to invest US$400 million (euro300 million) for research and development, construction of new facilities and equipment for the C-Series aircraft program, should it be launched.

Montreal, Canada-based Bombardier expects to invest $100 million in the ARJ21-900 project and will provide technical assistance toward the development of the aircraft.

Bombardier expects to "enhance the competitiveness of the ARJ21-900" and explore "potential commonality between the ARJ21-900 and Bombardier C-Series aircraft programs," the company said in a statement. "Both parties expect the outcome of this collaboration to result in mutually beneficial cost reductions and increased production efficiencies."

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