Airlines in China will spend more than $1 trillion on new airplanes over the next two decades to meet the country’s booming demand for air travel, Boeing said in its annual China market outlook.
It estimates 6,810 new aircraft purchases by China in the next twenty years, up 7.6 percent from its previous demand prediction until 2034.
"As China transitions to a more consumer-based economy, aviation will play a key role in its economic development," said Randy Tinseth, Vice President of Marketing, Boeing Commercial Airplanes. "Because travel and transportation are key services, we expect to see passenger traffic grow 6.4 percent annually in China over the next 20 years," he added.
According to Tinseth, the country's growing middle class and new visa policies "gives every reason to expect a very bright future for China's long-haul market.”
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Boeing predicts that three-quarters of new deliveries will be single-aisle aircraft that carry between 90 and 230 passengers. Demand for wide-body planes will also increase, with 1,560 new planes expected to triple the country's fleet over 20 years.
The report said that air cargo is expected to become a key driver for the continuous growth of aviation in China supported by the country’s growing e-commerce business which is already the largest in the world.
Boeing has played a major role in developing China's aviation industry and infrastructure, making up more than 50 percent of commercial jetliners operating in the country.
China, however, wants to develop its own aircraft manufacturing capability. Two years ago Beijing signed a deal with Russia to create a long-range wide-body aircraft. The project is part of a $13 billion aviation cooperation deal between the two countries. The new 250-280 seat aircraft will have a range of 12,000 kilometers.
In June, Russian Deputy Prime Minister Dmitry Rogozin announced the start of construction work on a heavy-lift aircraft engine for the jet.
The first airplanes are expected to be completed by 2023 and to go on sale in 2025.