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Sat, Mar 24, 2012

Cessna, AVIC Join Forces To Develop Aviation In China

Companies Will Pursue GA And Biz Av Ventures In The Region

Two strategic agreements signed by officials of Cessna and Aviation Industry Corporation of China (AVIC) could lead to the joint development of general and business aviation in the People's Republic of China. The agreements together pave the way for a range of business jets, utility single-engine turboprops and single-engine piston aircraft to be manufactured and certified in China.

The first agreement between AVIC and Cessna is an overarching agreement between these companies that is intended to lead to the formation of joint ventures that will pursue various activities pertaining to the development of general aviation businesses in China, including the establishment of an aircraft service network in China.

The second is a specific cooperation agreement between Cessna Aircraft Company, AVIC Aviation Techniques Co., LTD (AAT), and the Chengdu government to enter into negotiations to establish a joint venture to produce mid-size Cessna business jet models, as well as a potential new product for the business jet market.

Scott Ernest, Cessna president and CEO, says: "We are extremely pleased to be entering into these strategic agreements. China's market potential is tremendous and therefore represents an exciting opportunity for Cessna. China recognizes general aviation offers the foundation to support its national air transportation needs for the future. These agreements will help take the industry to the next level."

Within the next year, Cessna and AVIC are seeking to launch joint venture companies which will focus on implementing the initial phase of the strategic agreements.

FMI: www.cessna.com, www.avic2.com

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