The Boeing Company (BA
) reported on Thursday that it is now predicting demand for 5,580 new airplanes in China over the next 20 years.
The company now sees China’s fleet tripling in the next 20 years and expects the country to purchase approximately $780 billion worth of aircrafts during that period. The increase in demand will be caused primarily by a rise in China and Asia based tourism.
The rise in tourism will likely grow demand for single aisle airplanes. The company expects the Next-Generation 737 and the new 737 MAX to improve current capabilities, fuel efficiency and maintenance costs.
Randy Tinseth, vice president of marketing for BA, commented: “Thanks to strong economic growth and increased access to air travel, we project China traffic to grow at nearly 7 percent each year.”
“China is a key market for Boeing. Our current and future products will allow our customers to meet the growing demand with the most efficient airplanes.”
Boeing shares were mostly flat during Thursday morning trading. The stock is up 41% YTD.
No comments:
Post a Comment