Cessna Aircraft Company has signed a deal with the Chinese Aviation Industry General Aircraft Company (CAIGA) and the Shijiazhuang Municipal Government. The agreement, signed in China today, is expected to lead to a joint venture where US-built C208 Caravans will be assembled and serviced in China.
"It is important to understand that today's agreement is a direct result of the overarching agreement signed with AVIC [CAIGA's parent company] in March. This agreement picks up where that announcement left off," said Mike Shih, Vice President, China Strategy and Business Development for Cessna. "Not only does this continue Cessna's involvement in the development of General Aviation in China, but it also paves the way for aircraft sales to which we would not have otherwise had access. These Cessna aircraft will be manufactured in the United States, in Kansas, and sent to Shijiazhuang, China, to undergo final assembly and then be sold in China."
The joint venture's operations will be based at the CAIGA facilities in Shijiazhuang to conduct final assembly, painting, testing, interior installation, customization, flight testing and delivery of the Cessna Caravan to Chinese customers. According to Lannie O'Bannion, Cessna's Business Leader for Caravan Aircraft, the joint venture will meet a growing demand for the C208 in China.
"The cooperation between Cessna and CAIGA will enable us to deliver the Cessna Caravan within China for many different purposes. We have seen interest for the Caravan for use in commuter aviation fleets as well as China's growing tourist and sightseeing businesses. The versatility of the Caravan makes it a great fit for this market."
Cessna recognises the Chinese market as having great potential and expects it to be one of the largest GA markets in 10 years' time.
The move is an interesting one given that CAIGA also owns Cirrus Aircraft, one of Cessna's competitors.