Boeing tips China to need USD 1.1 tn new planes over next 20

Boeing says China will need more than a trillion dollars-worth of new airplanes over the next two decades as the cash-rich middle class grows and infrastructure projects pick up.
The US aircraft giant also outlined plans to open its first factory in the country as it looks to reinforce its position in the face of competition from European rival Airbus.
In its annual forecast yesterday, Boeing predicted China would need 7,240 new commercial jets by 2036 with a market value of nearly USD 1.1 trillion, adding almost a fifth of all global orders would come from Chinese companies.
"China's strong economy, the growing middle class and the significant investment in infrastructure support our long-term outlook" with the proliferation of secondary airports expected to add to this growth, said Randy Tinseth, Boeing's vice- president of marketing.

The firm last year predicted China would order 6,810 planes in the next two decades and cited an improving economy, expansion of local airlines and a recovering cargo market for its increased outlook.
Air traffic in China has increased as new low-cost carriers pop up and Boeing expects the middle class to double in ten years to reach 600 million people.

This prosperous group, who want to travel to increasingly long-haul destinations, are predicted to fuel a rise in sales of high-capacity planes.
But the single-aisle jets used for regional flights are forecast to stay at the heart of the China's demand for new planes, comprising an estimated 75 percent of orders.

Chinese companies now operate more than half the international flights in and out of China, challenging the previous domination of long-haul routes by foreign businesses, said Tinseth.
Home-grown Hainan Airlines announced in May it would buy 19 Boeing aircraft for an estimated USD 4.2 billion, including 13 long-haul B787-9 "Dreamliners".
The explosion of e-commerce and the need for air freight will be the main driver of demand for larger planes, Boeing said, and forecast the Chinese cargo sector to develop rapidly over the next 20 years.
The Chinese aerospace market is split almost equally between Boeing and its European rival Airbus.