Boeing (NYSE:BA), “China to be 1st $1-T Aviation Market
China will become the world’s !st aviation market to exceed US 1-T in value in 20 years, US airplane giant Boeing (NYSE:BA)forecast Tuesday.
It projected a demand for 6,810 new airplanes in the country over the next 2 decades, estimating the total value of the new aircraft at US$1.025-T.
“As China transitions to a more consumer-based economy, aviation will play a key role in its economic development,” Randy Tinseth, Vice President of Marketing with Boeing Commercial Airplanes, was quoted as saying in a company statement.
With travel and transportation becoming key services, passenger traffic is expected to grow 6.4% annually in China over the coming 20 years, he said.
China will need 5,110 new single-aisle airplanes through 2035, accounting for 75% of the total new deliveries, according to the statement.
Driven by China’s growing e-Commerce business, air cargo is expected to become a key driver for the continuous growth of aviation in the country, with a need for 180 new freighters and 410 converted freighters in the future, said the statement.
Globally, Boeing predicted investment of US$5.9-T for 39,620 new commercial airplanes to be delivered during the next 20 years, with China accounting for 17% of the total in both value and number.
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