The new joint venture planned between GE Aviation and AVIC Systems of China, which was announced in Beijing yesterday, places GE technology and expertise squarely in an area of explosive growth. As Lorraine Bolsinger, president and CEO for GE’s Aviation Systems business, says in the audio clip below: “With 9 percent traffic growth, and a rising middle class which is largely underserved, China is the world’s fastest growing aviation market and we need to ensure that GE and the United States is part of this growth.”
The framework agreement that was just signed calls for launching a new 50-50 joint venture company by mid-2010, with the goal to first focus on bidding electrical power systems and services for China’s new C919 — a narrow-body, single aisle plane designed to carry 168 passengers. It’s set to enter service in 2016.
The new avionics company, to be headquartered in China, will offer fully integrated, open architecture avionics and services for future commercial aircraft programs, not just those made by China. Lorraine says the joint venture will create approximately 200 jobs in the U.S., and that after the company has bid for the COMAC C919, they’ll then focus on systems for “the next generation of Boeing and Airbus products.”
* Read the announcement
* Read coverage of the deal on Bloomberg News
* Read coverage of the deal from the Associated Press
* To learn more about GE news in China, visit http://www.ge.com/chinanews.
* Read Lorraine Bolsinger’s post from March about GE’s manufacturing facility in China
* Read “Jump into GE’s integrated cockpit at Paris Air Show” on GE Reports