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Over The Next Two Decades, Boeing Predicts China Will Buy $1.1 Trillion Worth Of New Planes


09/07/2017


Over The Next Two Decades, Boeing Predicts China Will Buy $1.1 Trillion Worth Of New Planes
Between now and the year 2036, 7,240 commercial aircraft worth $1.1 trillion will be bought by Chinese airliners according to a forecast by aircraft marker Boeing.  
 
A firm reflection on the belief of Boeing in the prospects of the Chinese airline industry is made by the most recent estimate for a 20 year period which is a chunky 6.3 percent larger than the plane maker's previous estimate, Boeing said.
 
"China's continuous economic growth, significant investment in infrastructure, growing middle-class and evolving airline business models support this long-term outlook," said Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, in the report.
 
"China's fleet size is expected to grow at a pace well above the world average, and almost 20 percent of global new airplane demand will be from airlines based in China," Tinseth added.
 
Three-quarters of total deliveries for Chinese airlines would be accounted by 5,420 new single-aisle airplanes which will be needed through 2036, according to the estimates of Boeing. China will require 1,670 new airplanes over the same time period in relation to the wide-body planes, Boeing forecasts.
 
While larger planes will be snapped up by freight operators, passenger airlines will likely focus on smaller and medium sized wide-body aircraft, it says.
 
The outbound travel market will soon reach 200 million passengers annually from China, Boeing has estimated.
 
And over the next 20 years, there will be need for 41,030 new commercial airplanes valued at $6.1 trillion dollars worldwide, Boeing projects.
 
China is poised to overtake the United States as the world's largest aviation market by passengers in the year 2024 according to the International Air Transport Association (IATA) estimates.
 
In May, a 158-seat jetliner built by the state-owned Commercial Aircraft Corporation of China took its maiden flight from Shanghai because of the aim of China to gain a slice of the ever increasing pie in the international airline market generated by its airline industry.
 
Similar in size to Boeing's 737 or the Airbus A320, the C919 is a narrow-body twinjet. It was since 2008 that the Chinese passenger jet had been under development.
 
It "should do well in the Chinese market" even while the plane might struggle at first against the likes of Airbus and Boeing, Xinhua, China's official news agency, has said.
 
With some input from firms affiliated with Honeywell and General Electric, the C919 will be assembled in China.
 
(Source:www.cnbc.com)