China welcomes jumbo jet company

BEIJING, May 11 (UPI) -- China Sunday inaugurated its first jumbo passenger aircraft company, Commercial Aircraft Corp. of China Ltd., officials said.

The company will be responsible for researching, developing, manufacturing and marketing large passenger aircraft with more than 150 seats, the state-run Xinhua news agency reported.

CACC has registered capital of $2.7 billion, the report said. The state-owned Assets Supervision and Administration Commission is the fledgling company's biggest shareholder.

Other shareholders include China Aviation Industry Corp. I, the country's largest aircraft producer, and China Aviation Industry Corp. II.

The company will be chaired by Zhang Qingwei, a former minister of the State Commission of Science, Technology and Industry for National Defense.

Government officials approved the creation of the company in February 2007.