China Aviation Industry Corp merger complete

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The two state aircraft makers in China have successfully merged to form an aviation leader that eventually hopes to have a stock market listing, state media said.

According to Reuters, Shanghai Securities Journal quoted the firm's deputy general manager Tan Ruisong as saying that the newly formed China Aviation Industry Corp (CAIC) is aiming for 22.3 per cent average annual sales growth.

That increase would take the company's profits from roughly 150 billion yuan currently (AUD$32 billion) to one trillion yuan (AUD$216 billion) by 2017.

CAIC was created by the merger between of AVIC I and AVIC II. According to the paper, it has ten business units, which include defence, helicopters and aircraft engines.

In addition, the firm controls Jiangxi Hongdu Aviation Industry along with an additional 20 listed firms.

Tan Ruisong was reported by the paper as saying that it also hopes to list the entire group's assets within five years.

The organisation hopes to eventually compete with Boeing and Airbus in the civilian airline industry.