China Needs Bigger Airliners To Accommodate Demand
$BA, $EADSY
China airlines need more wide-body aircraft to satisfy growing demand for long-distance outbound travel, according to a report issued by Boeing (NYSE:BA) Friday.
The Chinese market for long-distance routes has grown by over 140 percent in the past five years, but national airlines have not been buying enough big planes, the report said.
Darren Hulst, a marketing executive for Boeing Company Northeast Asia, said the market would continue to grow and that wide-body aircraft are more cost-effective in this scenario.
The Chinese people made some 120-M outbound trips in Y 2015, making the country the largest outbound travel market.
Boeing is not the only aerospace giant aware of the potential.
Last Wednesday, Airbus (OTCMKT:EADSY) started building a new facility in north China’s Tianjin to deliver its A330 aircraft. Airbus said it would be the 1st “completion and delivery center” for wide-body aircraft outside Europe.
“We’re very confident that in the next 10 or 20 years, there will be strong demand for aircraft in China’s aviation market,” said Eric Chen, president of Airbus China.
Have a terrific weekend
Paul Ebeling
HeffX-LTN
The post China Needs Bigger Airliners To Accommodate Demand appeared first on Live Trading News.