China unveils first locally developed regional jet

SHANGHAI (Reuters) - China unveiled its first domestically developed regional aircraft on Friday, moving a step closer to its goal of becoming an aviation giant and challenging the dominance of Boeing (BA.N: Quote, Profile, Research) and Airbus.

The white 90-seat ARJ21-700 jet with three curved blue stripes on the fuselage, named "Xiang Feng" or "Flying Phoenix", was displayed to a crowd of government dignitaries and industry officials at the assembly plant in Shanghai where it will be produced.

"We are witnessing this unforgettable moment with extreme excitement," Lin Zuoming, general manager of state-owned manufacturer AVIC I, said in a ceremony broadcast live on state television.

"The ARJ21 makes us part of the global aviation industry," Lin said, but added: "It still faces a new journey to become successful financially."

The event was off-limits to most international and local media, except those directly controlled by the government.

AVIC I also announced 100 new orders for the Flying Phoenix from Kunpeng Airlines, a venture between China's Shenzhen Airlines Ltd and U.S.-based Mesa Air Group (MESA.O: Quote, Profile, Research).

That increased total orders for the jet -- due for its first test flight next spring and delivery from the third quarter of 2009 -- to more than 170, almost entirely from domestic carriers.

Kunpeng Airlines, which started domestic air service in October, currently has three 50-seat Bombardier CRJ-200 jets.

LONG-TERM BET