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Boeing Increases Estimate Of Jet Demands In China To $1.47 Trln For Next Two Decades

Boeing Increases Estimate Of Jet Demands In China To $1.47 Trln For Next Two Decades
Boeing Co boosted its projection for China's aircraft demand over the next 20 years marginally on Thursday, relying on the country's rapid recovery from COVID-19 and future development in its budget airline industry and e-commerce.
Chinese airlines would require 8,700 new planes by 2040, which is 1.2 percent more than the previous year's forecast of 8,600 jets. According to a statement from the US planemaker, they are valued at $1.47 trillion based on list prices.
The 1.2 percent gain compared with the 6.3 percent growth predicted by Boeing last year, which made China a bright light in the aviation sector during the height of coronavirus lockdowns globally.
Boeing raised up long-term projections for global airplane demand earlier this month, owing to a robust rebound in commercial air travel in domestic countries such as the United States.
"There are promising opportunities to significantly expand international long-haul routes and air freight capacity," said Richard Wynne, managing director of China marketing at Boeing's commercial arm.
"Longer-term, there is the potential for low-cost carrier growth to further build on single-aisle demand."
Although the domestic aviation industry of China is still prone to periodic local COVID-19 outbreaks, it has more or less recovered to pre-COVID levels, but the country's borders remain effectively blocked, with foreign flights accounting for barely 2% of pre-COVID levels.
Over the next 20 years, Boeing predicts a need for almost 6,500 new single-aisle planes, while China's widebody fleet, comprising passenger and cargo types, would require 1,850 new planes, accounting for 20% of total deliveries.
As e-commerce demand grows in China, the air freight sector has become a bright spot for Boeing, even as the US planemaker suffers from passenger aircraft sales owing to trade tensions and the grounding of planes.
China's aviation authority, which was the first to stop the 737 MAX after two tragic accidents, has yet to authorize the plane's restoration to service in the nation. China is responsible for a quarter of all Boeing aircraft orders.
Over the next 20 years, China would require roughly $1.8 trillion in commercial services for its aircraft fleet, according to the firm.

Christopher J. Mitchell

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