Connect with us

Asia

China to spend over $1 trillion on planes over next 20 years: Boeing

Published

on

China to spend over $1 trillion on planes over next 20 years: Boeing

Chinese airlines are likely to buy more than 7,000 planes worth 1.1 trillion dollars over the next 20 years, as they grow their fleets to meet robust demand for domestic and international travel, Boeing-Co-(BA.N) said in a bullish forecast on Wednesday.

Its latest estimate of 7,240 aircraft purchases for the period to 2036 is 6.3 per cent higher than the United States plane maker’s previous prediction of 6,810 planes last year.

“China’s continuous economic growth, significant investment in infrastructure, growing middle-class and evolving airline-business-models support this long-term outlook,” Randy Tinseth, Boeing Commercial Airplanes Vice President of marketing, said.

“China’s fleet size is expected to grow at a pace well above the world average, and almost 20 per cent of global-new-airplane-demand will be from airlines based in China,” Tinseth said in a statement.

Boeing and European rival Airbus (AIR.PA) have been jostling for market share in China, the world’s fastest growing aviation market, with both opening assembly plants in the country.

Both firms have profited heavily from the aggressive fleet expansion plans of Chinese airlines, which are now experiencing falling passenger returns on routes, thanks to stiffer competition and capacity increases.

The U.S. firm said it expects three- quarters of the 7,240 plane orders to be for single-aisle aircraft, thanks to strong demand for travel within China and throughout Asia.

The wide body fleet would require 1,670 new planes, it added.

Tinseth said he expected more demand for wide body aircraft, adding that the falling returns now being experienced by airlines was temporary.

“They are big investments, it takes time, and they will get there,” he said.

He added that there was more. optimism on the long-term economic outlook, given better-than-expected economic growth in China this year, while the cargo market was also seeing a resurgence.

Nan

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

Comments
NIGERIA DECIDES

NIGERIA DECIDES

Shell Digital Plan RESPONSIVE600x750
Shell Digital Plan RESPONSIVE600x750
GTB
JoinOurWhatsAppChannel