November 27, 2012 — Cessna Aircraft Company has entered into another joint business agreement with China Aviation Industry General Aircraft Company Ltd., (CAIGA) they previously announced a strategic alliance to assemble and sell Citation XLS+ jets in China.
The joint venture contract also leaves open the possibility of designing and assembling new models of utility turboprop aircraft in the future. The establishment of the joint venture company remains subject to a variety of government approvals and conditions.
Cessna's Wichita Kansas operations will supply parts manufacturing , components and sub-assemblies for the Caravan aircraft to be sold by the joint venture. Operations in Shijiazhuang will be tasked to perform the final assembly, testing , painting, interior installation, customization, flight testing and delivery of the Cessna Caravan to domestic Chinese customers.
Scott Ernest, Cessna's president and CEO commented. "Since its introduction, the Cessna Caravan has established itself to be an extremely dependable aircraft and is well suited for emerging international markets, Cessna is delighted to bring the Caravan to customers in China who will benefit from its superior quality and versatility."
Management of the joint venture will consist of board members from both Cessna and CAIGA, with the general manager to be designated by Cessna Aircraft Company and the deputy general manager to be chosen by CAIGA. William Schultz, Cessna's senior vice president of Business Development, China commented “Cessna continues to work intimately with our partners at CAIGA to bring superior quality aircraft to the Chinese market that exceeds customer expectations for dependability. As general aviation continues to grow in China, Cessna is dedicated to offering the right products to serve the market complemented by the company's incomparable customer service."
This joint venture contract stems from the strategic framework agreement that Cessna entered into with CAIGA parent company, Aviation Industry Corporation of China (AVIC), in March 2012.
The agreement focused on the Caravan, Citation XLS+ and Citation Sovereign for joint ventures with AVIC.