CHINA'S first jumbo jet company is to become part of a multi-functional operation base in Shanghai.

Commercial Aircraft Corporation of China Ltd, headquartered in Pudong New Area, will have three functions ?? research and development, manufacturing and client services, said Zhang Qingwei, company chairman.

The R&D and service bases will be in Shanghai Zizhu Science-based Industrial Park in Minhang District, and the manufacturing base at Lingang Industrial Area, according to an insider.

The company was set up in May with a registered capital of 19 billion yuan (US$2.7 billion) invested by the State-owned Assets Supervision and Administration Commission, the Shanghai government and the country's two aircraft makers.

Zhang said the first Chinese-made commercial jet, the ARJ21, will make its maiden flight by the end of the year.

"We will enhance quality management and process control to make sure that ARJ21 jet will make the maiden flight this year to consolidate the base of the country's jumbo jet project," Zhang said.

The ARJ21 was due to make its maiden flight in March but the plan was delayed as system suppliers failed to deliver products on time.

Meanwhile, the country's aviation market will undergo more reforms with a group being set up to integrate the country's two plane makers, China Aviation Industry Corporation I and China Aviation Industry Corporation II.