China moved one step closer to achieving its "dream" of manufacturing "jumbo aircraft" by establishing Commercial Aircraft Corp. of China in Shanghai yesterday.

The company is charged with building civil aircraft, with a particular focus on large commercial jets, likely in the 150-seat size category. Beijing has said it could compete with some Boeing and Airbus models by 2020.

Originally scheduled to launch in March, the new company has a registered capital of CNY19 billion ($2.72 billion), with the state-owned Assets Supervision and Administration Commission investing CNY6 billion to become the largest stakeholder. Guo Sheng Group, representing the local Shanghai government, invested CNY5 billion. Other stakeholders include AVIC 1, AVIC 2, Baosteel Group, Aluminum Corp of China and Sinochem Corp.

Chairman Zhang Qingwei said the company will be responsible for "aircraft research and development, key parts production and final assembly, marketing, customer service, airworthiness certification and financial leasing."

GM Jin Zhuanglong added that the short-term goals of the new venture are to accelerate training of civil aviation professionals and to conclude the ARJ 21's first flight and airworthiness certification process. "As for our long-term goal, we only have one," he said. "That is to guarantee commercial success of our large commercial trunk aircraft."

Jin told state news agency Xinhua that the company has adopted an "opening-up" policy with an eye toward purchasing avionics and engines for its large aircraft from international suppliers. "We welcome our foreign counterparts to participate in the manufacturing process of our large commercial trunk aircraft so as to create a win-win situation," he said.

He conceded that it will be a "long-term process" to manufacture large commercial aircraft, adding that no timetable has been established for building the first model. He also downplayed the potential challenge Commercial Aircraft Corp. of China will present to established manufacturers. "Even if we make it, our large commercial trunk aircraft won't pose any challenge to Boeing and Airbus, as we [will] only have one single type [initially] while they have multiple types of aircraft."