China Aviation Industry General Aircraft Co Ltd, a subsidiary of Aviation Industry Corp of China (AVIC), stated it would acquire a 100% stake in Cirrus Industries Inc (Shanghai Daily, 02-Mar-2011). This marks the first time a Chinese company has acquired an aircraft manufacturer from a developed country. The transaction is set to close in Apr-2011 following the receipt of necessary approvals from China's Government and the US Committee on Foreign Investment. The companies did not disclose the value of the deal. Another AVIC subsidiary, CATIC Beijing Co Ltd, last week acquired 20% in KHD Humboldt Wedag International AG for EUR45 million, becoming the largest shareholder in the German company.
AVIC unit acquires Cirrus Industries
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Disruption in the airline industry. It will happen sooner than we think: Part 1
There are two essential elements to the airline industry: flying aeroplanes and selling (and buying) seats. More technically this can be described as (1) operational; and (2) marketing and sales. There are other important activities, such as lobbying government to limit competition, and exploiting frequent flyer programmes, but those two are the core activities now facing disruption.
The former is unique to airlines, is uniquely regulated and engages massive governmental regulatory intervention, technical and economic. The marketing and sales activity has some aspects particular to aviation, but generally differs little from any other form of retail – except that most older airlines have tended to be particularly slow at learning the art.
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