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Avic I, Bombardier in development venture

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China Aviation Industry Corp I, maker of the first mainland-designed aircraft, will team up with Canadian firm Bombardier to develop a stretch version of the ARJ21-900 advanced regional jet, at an estimated research and development cost of about US$300 million.

The avionics of the new aircraft are similar to the ARJ21-700, said Chen Guanjun, vice-president for Avic I, on the sidelines of the Asian Aerospace conference in Hong Kong yesterday. The ARJ21-900 can accommodate 105 passengers, compared with the 90-seat configuration of the ARJ21-700.

Avic I is joining Bombardier more for marketing and economic reasons than technological ones.

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'Bombardier is moving up to the big aircraft market and leaving a gap that we can fill,' Mr Chen said. 'We want to share our market resources and rationalise our technical resources as well.'

Avic I and Bombardier have signed a memorandum of understanding and are expected to sign a formal contract by the end of this year, he said.

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Avic I so far has received 71 firm orders for the ARJ21-700, mainly from domestic airlines, such as Shandong Airlines, Shanghai Airlines and Xiamen Airlines, as well as two mainland aircraft leasing companies, Shenzhen Financial Leasing and SE Leasing.

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