Okay hopes to finalize the purchase of the 30 turboprops within the next five years. The airline plans to finance the deal through bank loans and attracting private investment.
SE Leasing, 95 per cent owned by Shanghai Electric Group Co, yesterday signed a letter of intent to buy 30 ARJ21 jets.

The 70-100 seat ARJ21 is a turbo fan regional jet developed with Chinese technology. Launched in October 2000, the aircraft will be assembled in March next year in Shanghai.

It will launch it first flight in March 2008 and enter commercial service in 2009.

Prior to yesterday's deal, four domestic companies had ordered 41 of the jets.

Helicopter market

AVIC II, or China Aviation Industry Corp II, yesterday announced the latest developments in the Z15/EC175 helicopter project. AVIC II and Eurocopter each have 50 per cent stakes in the project.

"We have completed the preliminary designing of the helicopter. It will launch its first flight on schedule in 2009," said AVIC II President Zhang Hongbiao.

The twin-engine six-ton helicopter is designed for civilian use and is expected to fill the gap in the two companies' current helicopter range between five and 10-ton models.
AVIC II expects to sell 800 of the helicopters over the next 20 years.

There will be two assembly lines for the helicopter, in Harbin, Northeast China's Heilongjiang Province, and Marignane, France.

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