Asia’s biggest airshow kicks off in Singapore this week amid a rout in the global financial markets. You can’t tell any of that looking at plane orders for Airbus Group SE and Boeing Co.
The hey days of multi-billion orders from India and nations in Southeast Asia is giving way to concerns about airlines in the region delaying delivery of planes. The lone bright spot -- China.
China Southern Airlines Co., Air China Ltd. and other carriers in the nation will require about 6,330 new planes worth US$950 billion ($1.3 bilion) in the next two decades, according to Chicago-based Boeing. That’s about 17% of the global total. During last year alone, Chinese airlines and leasing companies announced orders for some 780 planes valued at about US$102 billion.
“China’s aviation outlook is not just bright, but arguably the strongest it has been in its history,” said Will Horton, a Hong Kong-based analyst at CAPA Centre for Aviation. “Chinese airlines are waking up to their potential.”
As China re-balances its economy toward consumer spending after its slowest annual growth rate in 25 years, the government is trying to encourage more air travel by building 66 airports as part of its current five-year plan. That good news for the aerospace and airline industries contrasts with overcapacity and losses among airlines in Southeast Asia and India.
Momentum swing
From Brazil’s Embraer SA to Bombardier Inc. of Canada, aerospace manufacturers will chase hard to come by orders during the Singapore Airshow, which starts Tuesday. United Technologies Corp.’s engine-maker Pratt & Whitney will open its engine fan-blade manufacturing facility in the city state this week. No major Chinese airline executive will be at the show. China’s future as the world’s biggest travel and aircraft market and a gradual shift in momentum toward Asia are among themes aerospace manufacturers and airlines will discuss.
Airbus’s and Boeing’s 20-year outlooks are dependent on Asia Pacific for new fleet sales, with estimates that 39% of their total deliveries will be to that region through 2034.
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The hey days of multi-billion orders from India and nations in Southeast Asia is giving way to concerns about airlines in the region delaying delivery of planes. The lone bright spot -- China.
China Southern Airlines Co., Air China Ltd. and other carriers in the nation will require about 6,330 new planes worth US$950 billion ($1.3 bilion) in the next two decades, according to Chicago-based Boeing. That’s about 17% of the global total. During last year alone, Chinese airlines and leasing companies announced orders for some 780 planes valued at about US$102 billion.
“China’s aviation outlook is not just bright, but arguably the strongest it has been in its history,” said Will Horton, a Hong Kong-based analyst at CAPA Centre for Aviation. “Chinese airlines are waking up to their potential.”
As China re-balances its economy toward consumer spending after its slowest annual growth rate in 25 years, the government is trying to encourage more air travel by building 66 airports as part of its current five-year plan. That good news for the aerospace and airline industries contrasts with overcapacity and losses among airlines in Southeast Asia and India.
Momentum swing
From Brazil’s Embraer SA to Bombardier Inc. of Canada, aerospace manufacturers will chase hard to come by orders during the Singapore Airshow, which starts Tuesday. United Technologies Corp.’s engine-maker Pratt & Whitney will open its engine fan-blade manufacturing facility in the city state this week. No major Chinese airline executive will be at the show. China’s future as the world’s biggest travel and aircraft market and a gradual shift in momentum toward Asia are among themes aerospace manufacturers and airlines will discuss.
Airbus’s and Boeing’s 20-year outlooks are dependent on Asia Pacific for new fleet sales, with estimates that 39% of their total deliveries will be to that region through 2034.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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