Speaking at the Aviation Expo/China 2001 in Beijing, Wang Qiming said steady economic development and World Trade Organization accession will fuel demand for regional jets.

Wang, who heads AVIC I's civil aircraft department, said the central government's decision to develop the western part of the country and the success of Beijing's bid to host the 2008 Olympics will also boost demand.

By 2020, China's passenger fleet will have 1,852 aircraft, and the ratio of regional jets to the total fleet will rise from the current 14.7 percent to 31.5 percent, he said.

Transport by regional jets will become a new growth area of the country's civil aviation industry. "The vast market demand has brought enormous opportunities for Chinese aircraft companies,'' Wang said.

Zhang Yanzhong, general manager of AVIC II, said research and development of regional jets of 30 to 50 seats will be boosted.

"We welcome foreign investors to help with the development of the small aircraft,'' he said.

International cooperation is encouraged and foreign partners are expected to join regional aircraft projects, he said.

Zhang Hongbiao, vice-minister of the State Commission of Science, Technology and Industry for National Defence, said China will give top priority to the research and development of small aircraft in the coming decades.

Production of regional airliners is the nation's best bet as the aviation industry currently lacks the capability to produce larger planes competitively.

"We cannot compete with aviation giants such as Boeing and Airbus in financial clout and market share,'' the vice-minister said.

The State has already announced plans to create preferential conditions for the use of regional airlines, he said.

A number of airports are to be upgraded and around 36 new airports are to be built within the next five years that are suitable for smaller planes, he said.

With the aim of encouraging the use of small aircraft, civil aviation authorities announced a reduction of airport construction fees, which is charged on the average passenger, from 50 yuan (US$6) to 10 yuan (US$1.2) last October.

China's aviation industry will also make efforts to explore the international market for China-made small aircraft, Zhang said.

(China Daily 09/20/2001)