The Xi'an Engine Group (XAE) and General Electric Company (GE) signed the Risk and Revenue Sharing Program Wednesday, the first of such aviation agreement in China.

It needs quite a lot of investment in engine design, research, production and sales process, which might cause great risk. In order to reduce risk, aviation producers began to join hands in investment and sharing the revenues since the 1970s.

The XAE took the lead in joining such programs among all Chinese manufacturers and will promote the industry development, said Lin Zuoming, deputy general manager of the China Aviation Industry Corporation I.

The XAE received GE's first order in 1984 and delivered in 1986. During the past 20 years, the two sides kept expanding cooperation.

Source: Xinhua