Boeing increases budget for commercial planes for China to US$600 billion
Boeing Co. said it has allocated US$600 billion for new commercial airplanes in China over the next 20 years. The company increased its forecast for China by a fourth, following expectations of international expansion by Chinese carriers. China is expected to become the second biggest market after the U.S. Boeing explained that the expansion plans of Chinese airlines into overseas routes would fuel demand for intermediate twin-aisle jetliners like the 787 Dreamliner and the 777 jets. The company forecasts that these jetliners will make up the bulk of China’s aircraft demand. Around 1,000 planes are expected to be purchased by China over the next two decades. Randy Tinseth, vice president of marketing for Boeing’s Commercial Aircraft Division, said that China’s air travel demand is expected to grow annually at a rate of 7.6% on average in the next 20 years. “Sustained strong economic growth, growing trade activities, increasing personal wealth and income, as well as continued market liberalization will be the driving forces in shaping China’s air travel market,” Tinseth said. Boeing now has orders for 60 Dreamliner airplanes from China Southern Airlines Co., as well as other Chinese customers. (September 7, 2011)