According to a forecast by plane maker Boeing Co, in the next few decades, planes worth more than $1.2 trillion would be purchased by Chinese airlines so that the country is able to keep up with the rise in demand for flights. This is the second time in as many years that the American plane manufacturing giant has raised its forecast for the Chinese market.
Compared to the predictions of the company which it had made last year where the company estimated that China would require about 7,240 planes till the year 2036, the latest increased estimate of the company is 6.2 per cent higher and is listed till 2037.
“The growth in China can be attributed to the country’s growing middle class, which has more than tripled in the last 10 years and is expected to double again in the next 10,” said Randy Tinseth, Boeing Commercial Airplanes’ vice president of marketing in a statement.
China has been a focus market for both Boeing and its European competitor Airbus and both the company have been attempting to increase it influence in the market so that it can take advantages of the opportunities that are presented by the fastest growing aviation market.
So far, this US plane maker has more or less remained untouched by the ever escalating trade war between the United States and China. Despite threats from US President Donald Trump about his intention to impose import tariffs on all of the Chinese exports to the country, the Chinese authorities and the government has so far left out large airplanes for its lists of retaliatory tariffs to US goods.
According to the estimates of Boeing, about 18 per cent of the total entire commercial aircraft fleet in the world would be accounted for by China in the predicted time period of 2037 from the current year which is currently at 15 per cent. The firm also forecast that to support hat demand for aircrafts, China would need new planes worth $1.2 trillion in commercial services.
The estimates of Boeing further states that over the next 20 years, about 75 per cent of the total demand of 7,690 aircrafts of China would be placed by the various airlines of the country and most of the ordered planes would be single-aisle ones. The demand for the wider bodied aircrafts of the country’s airlines would be around 1,620 of new units which would be three times the current number of such planes belonging to the country, the forecast also added.
(Source:www.reuters.com)
Compared to the predictions of the company which it had made last year where the company estimated that China would require about 7,240 planes till the year 2036, the latest increased estimate of the company is 6.2 per cent higher and is listed till 2037.
“The growth in China can be attributed to the country’s growing middle class, which has more than tripled in the last 10 years and is expected to double again in the next 10,” said Randy Tinseth, Boeing Commercial Airplanes’ vice president of marketing in a statement.
China has been a focus market for both Boeing and its European competitor Airbus and both the company have been attempting to increase it influence in the market so that it can take advantages of the opportunities that are presented by the fastest growing aviation market.
So far, this US plane maker has more or less remained untouched by the ever escalating trade war between the United States and China. Despite threats from US President Donald Trump about his intention to impose import tariffs on all of the Chinese exports to the country, the Chinese authorities and the government has so far left out large airplanes for its lists of retaliatory tariffs to US goods.
According to the estimates of Boeing, about 18 per cent of the total entire commercial aircraft fleet in the world would be accounted for by China in the predicted time period of 2037 from the current year which is currently at 15 per cent. The firm also forecast that to support hat demand for aircrafts, China would need new planes worth $1.2 trillion in commercial services.
The estimates of Boeing further states that over the next 20 years, about 75 per cent of the total demand of 7,690 aircrafts of China would be placed by the various airlines of the country and most of the ordered planes would be single-aisle ones. The demand for the wider bodied aircrafts of the country’s airlines would be around 1,620 of new units which would be three times the current number of such planes belonging to the country, the forecast also added.
(Source:www.reuters.com)
