A light multi-purpose aircraft -- the Little Eagle 500 -- developed by China Aviation Industry Corporation II (AVIC II) made its maiden flight Sunday in Shijiazhuang, capital of north China's Hebei Province.

The single-engine propeller-driven aircraft is capable of carrying five people including a pilot.

The success of the maiden flight means the new general-use aircraft is likely to enter the domestic market soon, said company vice president Xu Zhanbin.

The central government's decision to develop western China and the success of Beijing's bid to host the 2008 Olympics will create more opportunities for general-use aircraft, Xu said.

AVIC II plans to develop another eight general-use aircraft models, including helicopters and passenger jets, in the coming three to five years to better serve the market, he said.

AVIC II is the only large domestic producer of helicopters and regional jets in China. It is also the largest mini-car maker in the country with a 41 percent market share.

Approved by the State Council, the company last year established a regional jet joint venture with the Brazilian aircraft manufacturer Embraer. The venture, called Harbin Embraer Aircraft Industry Company Ltd, will produce 30 to 50 seat turbofan regional jets.

The new company, which is 49 percent owned by AVIC II, is capable of producing 24 ERJ regional jets a year.

"This regional jet is expected to make its maiden flight before the end of this year," Xu said.

The company has already begun mass production of Zhi-8 and Zhi-9 helicopters, which are modeled after France's Dolphin helicopter.

It has also started manufacturing the home-grown Zhi-11 helicopter.

And AVIC II has been part of the EC-120 helicopter program with France and Singapore since 1993.

With a population of more than 1.2 billion people, China needs to build up its aviation industry, said AVIC II president Zhang Yanzhong.

The development of the industry would help create a new growth area for the economy, he said.

Last year, the corporation turned out 28 billion yuan (US$3.4 billion) of industrial output and achieved sales income of 20.2 billion yuan (US$2.4 billion), an increase of 29.4 percent and 22.1 percent respectively from 2001.

It earned 20 million yuan (US$2.4 million) in profits.

By 2005, the annual industrial output of AVIC II is expected to reach 36 billion yuan (US$4.3 billion). The annual sales income is likely to hit 26 billion yuan (US$3.1 billion).

The corporation's profits are expected to reach 300 million yuan (US$36.1 million) by then.

AVIC II was founded in the late 1990s after the former China Aviation Industry Corp was split up. It is now under the direct control of the central government.

(People's Daily October 27, 2003)