California Agricultural Aircraft Services, Inc. (CAAS) is a California corporation headquartered in Sacramento. CAAS leases aircraft to crop dusting businesses through California. CAAS entered into a contract with Shnghai Aircraft Company (SAC), a state-owned enterprise organized pursuant to the laws of the People’s Republic of China. The contract provided for the manufacture by SAC and purchase by CAAS of ten crop dusting aircraft at a price of U.S. $2.1 million, a savings of approximately $200,000 compared to crop dusting aircraft available from other manufacturers. One of the aircraft delivered to CAAS was subsequently leased to Central Valley Crop Dusting, Inc. (CVCD), a California corporation. One month later, this aircraft crashed during a CVCD spraying operation resulting in a complete loss of the aircraft and serious injuries to the pilot. The pilot stated that the engine lost power and then caught on fire while he was attempting an emergency landing.
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