China will pass the united states as the largest air travel market within 10-15 years, driving a large increase in aircraft sales to the world’s largest jet manufacturer says.
Boeing’s latest global industry report predicts airlines will 42,700 airplanes in the next 20 years, up to 3% in the last year of the forecast.
Boeing valued the sale at $6.3 billion (£4.8 tn) at today’s prices
The near-having regard to the report was unveiled on day two of the Farnborough Airshow, where more orders were announced.
Despite trade tensions, rising oil prices, and rising interest rates, the Boeing forecast is suggesting that there is no end to the near decade-long boom in aircraft sales. The production lines of Boeing and its European rival Airbus are already booked for years to come.
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On Tuesday, Russian airline Volga Dnepr agreed to buy Boeing freight aircraft, with a value of $11.8 billion at list prices, while Airbus has announced a provisional agreement with an unnamed customer for 100 of its A320 aircraft.
And US aircraft leasing company Air Lease Corp announced a commitment to order of about 78 Boeing single-aisle and wide-body aircraft in a deal valued at $9.6 million at catalog prices.
Boeing optimistic sales forecast, we stressed the importance of China to the aviation industry. One out of every four Boeing passenger aircraft was to Chinese customers last year.
The company’s commercial marketing chief, Randy Tinseth, said at a press conference in Farnborough that he expects China to surpass the U.S. as the largest domestic air travel market within 10-15 years.
In addition, he said, the demand for cargo aircraft will also increase in the back e-commerce, with Chinese traders and the consumers accounting for the largest increase.
The Lord, however, Tinseth declined to comment on whether Boeing’s growth in China could be hindered by a trade war. “We are going to focus on what we can control,” he said.
The company’s sales forecast for the next two decades are expected to increase 5% to 31,360 in the demand for single-aisle aircraft, like the Boeing 737 and the Airbus A320 families, which are popular with low-cost airlines.
The sales in the big, wide body of support is expected to fall by only 140 to 8,070 planes in the next 20 years, but only because long-term single-aisle jets were eating in the market, Mr Tinseth said.
Boeing cut its forecast for regional jets in the fleet 2,320 deliveries. The competition in this sector is expected to intensify, as Airbus has taken over Bombardier’s C Series aircraft program and Boeing’s purchase of Embraer jets.