Boeing Increases Target Forecast of Aircraft Demand in China
Boeing Co. raised its forecast for the aircraft demand in China over the next 20 years stating that they are optimistic on the long term outlook of the world’s second largest aviation market even with a slow economy and weak stock market. The US plane maker is expecting China will order an additional 6,330 aircraft in the span of 20 years, a 5 percent increase from last year’s estimate and is valuing the demand at US$ 950 billion.
Even with the current volatility of the financial market in China, Boeing sees a strong growth in the aviation sector long term. Boeing estimates that the country’s commercial airline fleet will triple in the next twenty years from 2,570 aircraft in 2014 to 7,210 by 2034. By that time China will be the largest domestic air travel market and Boeing sees no slowing down in amount of air traffic in China. Boeing and its rival Airbus Group rely on China to fuel the growth in the airline market.
Airbus claims that 50 percent of the market share is theirs by having more than 1,180 aircraft in operation in several major Chinese airlines, then in July Airbus announced plans to build a completion and delivery center for A330 planes in Tianjin, which is now in operation. Boeing also estimates that China will purchase around 4,630 single aisle aircraft in the 20 year period as part of the growth of new carriers and low cost airlines. Furthermore and additional demand of 1,510 wide body aircraft will be ordered as analysts expects a larger number of Chinese middle class will be traveling in long haul flights.