Comac calls for Chinese state fund to drive aircraft sales

Singapore
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The Commercial Aircraft Corporation of China (Comac) has urged the Chinese government to set up a state fund to help drive sales of Chinese-made aircraft.

Comac's VP Wu Guanghui was quoted by local media reports as saying that the authorities should establish a fund of at least 30 billion yuan ($4.4 billion).

The funds will go towards helping smaller Chinese airlines purchase Chinese-made aircraft like the Comac C919, the reports quote Wu as saying.

This will help boost sales of Chinese-made aircraft as very few leasing companies are willing to purchase Chinese-made aircraft, he adds.

Wu also suggests that the government provide subsidies to airlines that lease or purchase Chinese-made aircraft.

A team including Comac and government officials is studying the issue, Wu is quoted as saying.

Comac's C919 is expected to have its first flight in 2014, and enter service in 2016.