Boeing raised its forecast for plane sales and services in China for the next 20 years. According to the US-based plane maker, China will need 8,090 new airplanes in the next 20 years, which is expected to cost around $1.3 trillion.
According to Boeing’s forecast, China will need to invest about $1.6 trillion in services to meet airplane passenger traffic in China, which is expected to grow by 6 percent annually. The investment will include about $935 billion in-ground and cargo operations services, $390 billion in maintenance and engineering services, $200 billion in flight-operations services and $90 billion in marketing, customer service, and corporate services.
Randy Tinseth, vice president of commercial marketing for Boeing told the media that, “China is one of the world’s most dynamic and fastest-growing markets. An expanding middle class, significant investment in infrastructure, and advanced technologies that make airplanes more capable and efficient, continue to drive tremendous demand for air travel.”
Boeing in its latest China Commercial Market Outlook forecasted that single-aisle airplanes like the ground Boeing 737 MAX, are expected to dominate the domestic and regional fleets in China. The country will witness the demand for about 5,960 new single-aisle airplanes, which will account for 74 percent of total new deliveries.
Similarly, Boeing forecasts that China will also need 1,780 new wide-body aircraft, which will triple the country’s current fleet size. Boeing also added that China’s rapidly growing e-commerce and express delivery market will create the need for 230 new freighters and 500 converted freighters.
Despite China being the first country to ground the controversial Boeing 737 MAX aircraft, China still remains a key market for the American airplane maker. Currently, China owns around 15 percent of the world’s commercial bank. The country is in the path to become the world’s largest aviation market within the next decade.