China will lead Asia Pacific Region in New Airplane Deliveries

Boeing airplanes to capture growing need for more direct flights
Thursday, September 4, 2014

Beijing: Boeing, China's leading provider of passenger airplanes, in their annual China Current Market Outlook (CMO), projects a demand in the country for 6,020 new airplanes, 45 percent of the total demand for airplanes in the Asia Pacific region over the next 20 years, valued at $870 billion.

"China's aviation market is going through dynamic changes," said Randy Tinseth, Boeing Commercial Airplanes vice president of Marketing. "New business models like low-cost carriers and airplane leasing companies, a new generation of fuel-efficient airplanes and evolving consumer needs are driving demand for more direct flights to more destinations."

The CMO showing how Boeing airplanes such as the 737 MAX, 777X and 787 Dreamliner are well positioned to take passengers directly to their destinations and help airlines generate more revenue, and the emergence of start-up airlines and low-cost carriers stimulating traffic, allowing more people to fly.

Tourism in China and intra-Asia travel support a strong demand for single-aisle airplanes, with total deliveries reaching 4,340 through 2033. Tinseth said both the Next-Generation 737-800 and new 737 MAX 8 offer the airline customers the most revenue potential in this segment.

Chinese airlines continue to look for opportunities to expand as international flying increases from secondary cities apart from Beijing, Shanghai and Guangzhou. Growth in the long-haul segment is expected to result in demand for an additional 1,480 new fuel-efficient wide-body airplanes, such as the 777, 787 Dreamliner and 747-8 Intercontinental, besides a continued shift in demand from very large airplanes to efficient new small and medium wide-body airplanes.

"To compete in the tough long-haul international market, our Chinese customers are focused on evolving new business models, adding new destinations, increasing their capacity and resources," said Tinseth. "These trends will shape market demand for an airplane lineup that has high efficiency, low operating costs, environmentally progressive technologies and a great passenger experience. We believe Boeing's comprehensive widebody portfolio is perfectly aligned to meet those needs."

New Airplane Deliveries to China: 2014-2033
Airplane type Seats Total Value
Regional jets < = 90 200 $10B
Single-aisle 90-230 4,340 $430B
Small wide-body 200-300 780 $200B
Medium wide-body 300-400 640 $210B
Large wide-body > = 400 60 $20B
Total 6,020 (16.4% of world total) $870B (16.7% of world total)

Worldwide, Boeing projects investments of $5.2 trillion for 36,770 new commercial airplanes to be delivered during the next 20 years. China accounts for more than 16 percent of the total demand in terms of both new deliveries and market value and has a component role on every current Boeing commercial airplane model - the Next-Generation 737, 747, 767, 777, as well as the world's newest and most innovative airplane, the 787 Dreamliner.

More than 50 percent of all the commercial jetliners operating in China are Boeing airplanes. Some 8,000 Boeing airplanes fly throughout the world with integrated China-built parts and assemblies.