Xi'an Aircraft International Corp's production expansion project, a plan to produce 30 Modem Ark 60 (MA60) airplanes annually, has been approved by the National Development and Reform Commission, the Beijing Business Today reported today.

The MA60 is a twin turbo-prop aircraft focusing on commuter service. It has a maximum take-off weight of 21,800 kilograms and a seating capacity of up to 60 passengers.

"This is a distinct signal that the Chinese government is encouraging the development of domestic offshoot airlines," said Yang Yuzhong, general consultant of the civil aircraft industry of China Aviation Industry Corporation I (AVIC I).

The Shenzhen-listed Xi'an Aircraft International Corp, affiliated to AVIC I's Xi'an Aircraft Industry Group, has received orders for about 50 MA60s, 36 of which are from international buyers.

Last month, Okair Aviation Corporation, the first non-State-owned aviation company in China, inked a contract with Xi'an Aircraft Industry Group and AVIC I's International Lease Co Ltd to rent and purchase 10 MA60s, worth a total 1.25 billion yuan (US$164.7 million).

Yang Guoqing, deputy director of the General Administration of Civil Aviation of China, has suggested China identified regional airlines development as an important task for the 11th Five-Year Program in order to balance the development in the western, central and eastern China.

He also said trunk airlines have already been saturated, while the branch airline market still has growth potential.

(Chinadaily.com.cn August 21, 2007)