Tuesday, 13 September 2016

China to become first trillion dollar aviation market

Posted by Anup Baral September 14, 2016 : Airlines in China will spend more than $1 trillion on new airplanes over the next two decades to meet the country’s booming demand for air travel, Boeing said in its annual China market outlook.It estimates 6,810 new aircraft purchases by China in the next twenty years, up 7.6 percent from its previous demand prediction until 2034. "As China transitions to a more consumer-based economy, aviation will play a key role in its economic development," said Randy Tinseth, Vice President of Marketing, Boeing Commercial Airplanes. "Because travel and transportation are key services, we expect to see passenger traffic grow 6.4 percent annually in China over the next 20 years," he added.
According to Tinseth, the country's growing middle class and new visa policies "gives every reason to expect a very bright future for China's long-haul market.”Boeing predicts that three-quarters of new deliveries will be single-aisle aircraft that carry between 90 and 230 passengers. Demand for wide-body planes will also increase, with 1,560 new planes expected to triple the country's fleet over 20 years.The report said that air cargo is expected to become a key driver for the continuous growth of aviation in China supported by the country’s growing e-commerce business which is already the largest in the world. Boeing has played a major role in developing China's aviation industry and infrastructure, making up more than 50 percent of commercial jetliners operating in the country.

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