Tuesday, September 13, 2016

China to spend $1 trillion on 6,810 new aircraft


 (Boeing) 

Chinese airlines will spend more than $1 trillion on new aircraft over the next two decades as they seek to meet booming demand for air travel, according to a new forecast by Boeing.

The massive spending spree will pay for an estimated 6,810 aircraft, and turn China into what Boeing describes as "the first trillion dollar aviation market."

Randy Tinseth, a marketing executive at Boeing Commercial Airplanes, said in a statement that he expects passenger traffic in China to grow by 6.4% a year over the next 20 years.

The country's growing middle class and new visa policies "gives us every reason to expect a very bright future for China's long-haul market," he said.

Boeing predicts that three-quarters of the new deliveries will be single-aisle aircraft that carry between 90 and 230 passengers, and cater to both business and holiday travelers.

Demand for widebody planes will also increase, with 1,560 new planes helping to triple the country's fleet over 20 years. The category includes aircraft like the Boeing 787 Dreamliner and the company's classic 777 line.


Boeing has played a major role in developing China's aviation industry and infrastructure, and the Chicago-based company estimates that it pumps roughly $1 billion a year into the country's economy though joint ventures and purchases from suppliers.

In 2015, Boeing estimated that Chinese airlines would spend $950 billion over 20 years.


(Charles Riley- CNN Business)

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