Rolls-Royce and Boeing forecast strong growth in China
SYDNEY (Centre for Asia Pacific) - Rolls-Royce released its 20-year outlook for the China market, with the folllowing highlights: Airline traffic growth: 9% per annum. Total traffic will exceed Europe in 2008 and the US in 2022; Aircraft purchases: 2,300 (52% of which will be widebody aircraft); Engine market: USD34 billion (10% of global market).
Meawhile, Boeing forecasts a requirement in China for just over 2,600 new aircraft worth USD213 billion over the next 20 years. The domestic market is forecast to grow at an average of 8.8% per annum, while the international market would grow by 7.3% annually. Boeing expects to sell 500 aircraft to Chinese airlines in the next five years.
Boeing: “[The LCC model] clearly [has] got a great deal of potential here in China and in Asia. For these carriers to be successful, they have to be looking towards continued liberalisation...Under that situation and the right dynamics, they can be very successful”, Randy Tinseth, Director of Product and Flight Marketing.