Dacheng Represents Xi’an Aircraft in Engine Purchase Transaction with P&WC

On July 13, 2014, Xi’an Aircraft Industrial (Group) Corporation (hereinafter referred to as “Xi’an Aircraft”) signed a package of transactional documents with Pratt and Whitney Canada (“P&WC”) on the purchase of engines from P&WC for its independently developed Xi’an Model Ark 700 (“MA700”). 

MA700, a commission from Aviation Industry Corporation of China (“AVIC”), is a new-generation turboprop regional airliner. AVIC aims to break into the world’s high-end aircraft market, strengthen and expand market share and establish itself as a world’s leading manufacturer of turboprop regional airliners. 

Xi’an Aircraft, an affiliate of AVIC, is a large- to medium-sized military and civil aircraft developer and manufacturer. AVIC is a state-sponsored SOE under the direct administration of SASAC. It was ranked 178th on Fortune 500 2014 list and came 6th in the subcategory of “aviation and defense”. 

A Dacheng team was retained by Xi’an Aircraft to assist in negotiations regarding the engine purchase. The team was led by Beijing-based senior partners Wang Jie and Tuo Wei and included partner Liu Qian, associate Wang Tong, paralegal Zhao Xiaochen, legal assistant Mi Yuan, Xi’an-based associates Zhao Wenbin, Liu Xiaoyan, Liu Suxia, Wen Junping and paralegal Wang Yaqiong. 

The team worked closely with the Xi’an Aircraft project team in ten-month negotiations with two suppliers before the aircraft developer stroke a deal with P&WC. The project, taking full advantage of Dacheng’s Global Legal Services Network, was completed satisfactorily.