One day after rival Airbus released its Global Market Forecast touting the dominance of the Chinese aviation sector, Boeing forecasted that China will require 5,260 new aircraft, valued at $670 billion, by 2031. Small and medium-sized, twin-aisle aircraft will account for the majority of the future deliveries, according to Boeing projections.
Boeing’s Randy Tinseth said what’s most impressive about China’s projected need is that more than 75 percent of the deliveries will be due to growth, not replacement. “Sustained strong economic growth, growing trade activities and increasing personal wealth are some of the driving forces,” he added.
Tinseth also remarked that Boeing expects Chinese carriers to post an annual growth rate of 8.9 percent over the next two decades. He said it’s “not only because the market demand is growing, but because Chinese carriers now have the capability and resources to compete in the tough long-haul international market.”
Projected growth or not, China hasn’t been immune to the sluggish cargo volumes that have plagued the Asia-Pacific lately. Freight carriers in this region saw demand slow 7.6 percent, year-over-year, in July, according to International Air Transport Association statistics, while capacity stalled 4.3 percent, year-over-year.
In fact, IATA revealed in a press release, Asia-Pacific freight carriers have seen “virtually no growth” since the fourth quarter of 2011.