New company to take on jet project

China will establish a new company by March to take charge of its large passenger airplane project, a senior executive from the country's top aircraft manufacturer said yesterday.

Shareholders of the new firm are likely to include China Aviation Industry Corp I (AVIC I), AVIC II, State-owned investment companies and Chinese airlines, Liang Zhenhe, vice-president of AVIC II, told China Daily.

The aircraft will be assembled in Shanghai, with the nose, fuselage and tail sections manufactured in other provinces, Liang said.