China Increases its Demand for New Aircrafts until 2020
Boeing Co. is expecting China to need more than 6,000 new aircraft in the next twenty years an 8 percent increase over last year’s 20 year estimate as the growing overseas leisure travel is driving the demand for single aisle and wide body aircraft.
Boeing estimates of the needed planes will be at US$870 billion up from the amount estimated last year and triple of the current fleet of China. New business models that offer low cost carriers and regional carriers are the most in demand as more direct flights are being scheduled to more destinations. And Boeing is expecting China to overtake the United States as the world single biggest aircraft market until 2032.
Chinese airlines are focusing their sights on overseas routes as the domestic market is cooling down due to a slow economy. These overseas push is fueled by the increase in the number of outbound travelers that is expected to double by 2020. Aside from increasing coverage from its neighboring countries, Air China opened three new routes to the US since July 2013 with a three time weekly service ot Honolulu in 2014.