AVIC 1 leasing company established

China Aviation Corp. 1 (AVIC 1) will establish the AVIC 1 International Leasing Corp. (AILC), together with 13 aviation industry groups and research institutes. It will become the first domestic international aircraft leasing company with a background in aircraft manufacturing. AVIC 1 currently has the CATIC International Leasing Corp., an import and export agency. AVIC 1 established the new company by increasing the capital and shares of CATIC from RMB 4 million to RMB 430 million. AILC will be operated by AVIC 1, together with enterprises and research institutes involved in aircraft design, aircraft manufacturing, engine manufacturing, avionics development and missile development. The company will finance and manage the leasing of assets, including civil aircraft, machines and electromechanical devices and transport equipment. AILC general manager Zhao Hongwei said the company will start by leasing equipment to aviation companies. After the production of the AIRJ21 aircraft being developed by AVIC 1, the leasing company’s business will expand to aircraft leasing. The ARJ21 aircraft will have its test flight in 2008.