Run Ming recently facilitated the joint venture of state-owned company Aviation Industry Corporation of China (AVIC) with General Electric Company (GE). The two companies signed the framework agreement to set up 50/50 JV to provide avionic products and services for future civil aviation programs in the worldwide market.

The JV will bid for the C919 large civil aircraft program to be offered by Commercial Aircraft Corporation of China. “Aviation is a national priority in China. The joint venture creates a major integrated supplier to air-framers worldwide,” said Lorraine Bolsinger, president and CEO for GE's Aviation Systems business.

Headquartered in China, the JV company will offer fully integrated, open architecture avionics and services for future commercial aircraft programs. GE will build on its extensive avionics capabilities and its China Technology Centre in Shanghai to create a technology centre of excellence to serve the commercial aviation market.

Run Ming, whose partners Liu Yi and Yang Lijun led the team in advising on the JV has previously assisted AVIC on a range of its business endeavours. Run Ming also separately advised AVIC in its agreement with US conglomerate Honeywell International to expand the existing joint cooperation framework.

Weil Gotshal acted for GE on the deal, led by Steve Xiang, head of the firm’s Shanghai and Beijing offices. Weil also advised GE on its multibillion-dollar partnership with Abu Dhabi's state investment vehicle, Mubadala. 

As a leading aviation law firm, Run Ming was also engaged to advise US aircraft leasing company, Aviation Capital Group, on its delivery of a Boeing 737-800 aircraft to Chinese Eastern Airlines Corporation. Financing of the deal was provided by JPMorgan Chase Bank with a US Ex-Im Bank guarantee. US Ex-Im Bank was advised by Vedder Price while JPMorgan Chase was advised by Milbank Tweed.

Although a Chinese lawyer told ALB earlier this year that focusing one’s practice on aviation is very risky, given the small current number of potential deals, it seems that the sector is set to take a turn. In the next 20 years, China will see a market demand for 2,500 large aircraft and the output value of avionics systems and equipment will reach RMB180bn.

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