The China Aviation Industry Corporation (AVIC) has concluded a delivery contract with Venezuela on twenty five multi-purpose Y-12 light aircraft and two helicopters, the China Daily said on Tuesday.
The aircraft will be used by a new airline company to be established by the South American state. An AVIC source denied the Chinese side planned to invest $300 million in the new air carrier.
The contract was concluded on Friday between the AVIC subsidiary the AVIC International Holding Corp and Venezuela's Fundagrial fund and the Sireca company. The financial details of the contract have not been revealed.
The Chinese company will supply other six planes to Venezuela over the next five years.
The contract is expected to enhance aviation ties between the two countries and improve the level of air carrier services in South America.
China is Venezuela's second-largest trading partner, while Venezuela is China's fifth-largest trading partner in South America.
BEIJING, July 13 (RIA Novosti)
