China airlines are likely to buy 7,240 new planes valued at almost $1.1 trillion over the next 20 years. That compares with its projections last September for 6,810 aircraft through 2035.
“China’s continuous economic growth, significant investment in infrastructure, growing middle-class and evolving airline business models support this long-term outlook,” Randy Tinseth, Boeing Commercial Airplanes vice president of marketing, said.
Boeing and European rival Airbus have been jostling for market share in China, the world’s fastest growing aviation market, with both opening assembly plants in the country.
The upward revision for China comes despite rising trade tensions between the Asian nation and the U.S. and a volatile geopolitical environment in the Korean peninsula. China is “a critical market,” where long-term economic growth, a recovering air-cargo market and the expansion of Chinese airlines support a more optimistic forecast this year, according to Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes.
China has become the world’s biggest source of outbound travelers, prompting authorities to ramp up efforts to build new airports and expand existing ones, not only in top-tier cities like Beijing, but also regional economic centers such as Chengdu and Xi’an.
China accounts for almost 11 percent of Boeing’s revenue, according to data compiled by Bloomberg.
The US firm said it expects three-quarters of the 7,240 plane orders to be for single-aisle aircraft, thanks to strong demand for travel within China and throughout Asia. The widebody fleet would require 1,670 new planes, it added.
About Boeing
The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, and satellites worldwide. The company also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers; it is the second-largest defense contractor in the world based on 2015 revenue, and is the largest exporter in the United States by dollar value. Boeing stock is a component of the Dow Jones Industrial Average.
The Boeing Company’s corporate headquarters are located in Chicago and the company is led by President and CEO Dennis Muilenburg