A source close to the deal told China Daily that Hamilton Sundstrand will form a joint-venture partnership with Aviation Industry Corporation of China (AVIC) System Co Ltd to develop and manufacture the electrical system, as stated in a letter of intent signed on April 15 in Xi'an, Shaanxi province.

The C919, China's first large commercial jetliner developed by the Commercial Aircraft Corporation of China Ltd (COMAC), is expected to take flight in 2016.

Shanghai-based COMAC aims to sell more than 2,000 of the 150-seat single-aisle planes over the next 20 years, challenging Airbus and Boeing in both the domestic and global markets.

Hamilton Sundstrand, a subsidiary of United Technologies Corp, estimated in a statement on its website that the deal would be worth more than $1 billion in revenue over the life of the program.

"Hamilton Sundstrand is honored to partner with COMAC to provide the electric system on the new C919 aircraft," said Hamilton Sundstrand President Alain Bellemare.

"With this agreement, Hamilton Sundstrand continues to play a large role in the Chinese aviation industry's rapid growth."

The contract is expected to contribute to United Technologies Corp's estimated 2010 earnings of between $54 billion and $55 billion for 2010.

United Technologies Corp, which also makes Pratt & Whitney jet engines and Sikorsky helicopters, said on Wednesday its first quarter profit jumped 20 percent, the first increase in a year as the industrial conglomerate cited its efforts to cut costs and boost productivity.

United Technologies rose $2.73, or 3.7 percent, to $76.93 in New York Stock Exchange trading on Wednesday.

Hamilton Sundstrand is a key supplier on COMAC's 90-seat ARJ21 regional jet, including the electric power, high-lift actuation and fire protection systems.

The company is one of a clutch of aviation suppliers that was awarded a contract for the C919 project, China's largest domestically manufactured jetliner.

COMAC's Chief Designer and Deputy-General Manager Wu Guanghui said that the corporation would source parts and components globally, in line with the practice of the international aviation industry.

But priorities will be given to foreign suppliers who enter into partnerships with Chinese manufacturers, he said, adding he expects to find all suppliers by the end of this year.

Earlier, Honeywell International Inc got a $7.3 billion order to supply auxiliary power units and related equipment for the C919 project, while Parker Hannifin Corp won a contract for at least $2.5 billion for components including fuel and hydraulic systems.

COMAC also chose Liebherr-Aerospace Toulouse SAS to supply C919's air management system, and chose Goodrich to supply the exterior lighting system.

The four suppliers will all establish joint ventures with local partners for the project, according to the letter of intent signed on April 14 in Nanjing, Jiangsu province. Before that, CFM International, a venture between GE Aviation and Safran SA of France, last year said it won the contract to provide its LEAP-X engine for the aircraft.