Bombardier, ATR Join with AVIC I

Both Bombardier and ATR-partner, Alenia, announced relationships with China Aviation Industry Corporation (AVIC I) at Paris with the Bombardier deal starting with the CSeries and involving significant cooperation on AVIC I’s ARJ21 program in a deal worth $500 million. Meanwhile, ATR is increasing the participation of AVIC I in the manufacturer of the ATR-42 aircraft.
Bombardier and AVIC I announced a long-term strategic cooperation on commercial aircraft starting with the 90- to 149-seat CSeries, a decision on which is expected next year. In turn Bombardier intends to participate in the development AVIC I’s five-abreast ARJ21-900, following on from the ARJ21 series of aircraft. Bombardier will invest $100 million in the project, provide technical assistance when launched as well as enhance the competitiveness of the ARJ21-900 and by exploring potential commonality between it and the CSeries. For its part, AVIC I, in an effort to become a world class structural supplier, will invest $400 million for research and development as well as the construction of new facilities and equipment for the CSeries, should it be launched.
Alenia Aeronautica and Xian Aircraft Company (XAC) of China said XAC will produce Section 18 of the ATR aircraft - a rear section of the fuselage - in China. The Xian Aircraft Company, which already produces Section 16, will supply both to Alenia for the ATR aircraft, is part of AVIC I, the China Aviation Industry Corporation Consortium. Manufacturing starts in 2007 when sections 16 and 18 will be directly joined in Xian (China) before being assembled with the rest of the fuselage in Italy. Therefore, a significant part of the structure of the ATR aircraft (around 15 percent to 20 percent) will be directly manufactured in China. Over a four-year period from 2005 to 2009, the additional activity generated by this agreement, coupled with the dramatic increase in the production rate of the ATR aircraft, will multiply by ten-fold the Chinese Aeronautics Industry labor volume dedicated to ATR production.