Published On : Jul 19, 2018
In the next 10-15 years, China is expected to surpass US to become the largest air travel market; growth is majorly driven by significant rise in aircraft sales.
On Tuesday, Boeing issued its 20-year industry forecast comprising passenger and cargo aircraft on the second day of Farnborough Airshow. The company underscored the industry’s flexibility to emerging global trade tensions.
The world’s largest planemaker forecasted 42,700 industry deliveries in the next two decades; these statistics are raised by three per cent from its previous year estimates of 41,030. The value is stated to be worth $6.3 trillion at list prices as against last year’s forecast of $6.1trn.
Regardless of trade tensions, swelling oil prices, and scrambles in interest rates, the Boeing estimate suggests no hindrance to the near-decade extended boom related to aircraft sales. In addition, the Boeing production lines together with its European rival Airbus are at present booked for the coming years.
Cheerful sales at Boeing have underlined the vital nature of China to the overall aircraft industry. It is analyzed that, one in four of passenger aircraft at Boeing were delivered to Chinese customers in the previous year. According to Randy Tinseth, commercial marketing chief at the company, China is set to overtake the US to become the world's biggest domestic air travel market in the next 10-15 years. This statement delivered by Tinseth at Farnborough Airshow also mentioned the demand for cargo aircraft to rise due to quick involvement by Chinese traders.
It is expected that the company's sales for the next two decades would present a rise of 5%, leading to an enhanced demand for 31,360 single-aisle aircraft. It includes the Airbus A320 and Boeing 737 families that are popular among low-cost airlines.