2010 Nov. 2 (Bloomberg) -- Boeing Co., the world’s largest aerospace company, raised its forecast for commercial aircraft demand in China over 20 years to $480 billion from $400 billion a year ago as economic growth spurs air travel.
The nation will need 4,330 new planes in the period, tripling the fleet as increases in personal wealth and urbanization drive up demand for air travel, according to estimates the Chicago-based planemaker released today in Beijing.
Boeing has said it expects the Asia-Pacific region to need about 10,320 new aircraft in the period, as Asia surpasses North America as the world’s biggest aircraft market. North America will add about 7,200 new airplanes worth $700 billion by 2029, the company forecasts.
“Finally, we started to see airlines invest in new planes,” said Randy Tinseth, marketing vice president at the jetliner division, said today in Beijing. The company expects to maintain its 52 percent share of China’s market, he said.
Revenue from Boeing plane sales in China more than doubled to $4.89 billion in 2009, making it the fastest-growing region after the Middle East, where sales surged more than 100 percent to $5.34 billion. China accounted for about 7 percent of 2009 revenue, while the U.S. made up about 58 percent.
European rival Airbus SAS has made a written proposal to the Chinese government for the sale of 333 planes, the La Tribune newspaper reported in September, without saying where it got the information.
The France-based planemaker began assembling A320 single- aisle jetliners in Tianjin, China, last year.
Air China Orders
Air China Ltd., the world’s largest carrier, and Chinese competitors have ordered 50 planes from Boeing this year, according to the aircraft maker’s website.
Investors with Air China approved on Oct. 28 plans to buy 39 Boeing planes and 10 Airbus models to meet rising demand. Profit at the carrier and rivals China Southern Airlines Co. and China Eastern Airlines Corp. surged in the third quarter as the yuan strengthened and travel demand rebounded. Cathay Pacific Airways Ltd., Hong Kong’s largest carrier, said in August it agreed to buy 30 Airbus A350-900 planes and six Boeing 777-300ERs. China will probably order a total of 3,272 aircraft with more than 100 seats in the 20 years ending 2028, trailing only the U.S., according to an Airbus forecast.
