Wednesday, September 5, 2012

Boeing (BA) Says China Needs Over 5,000 Planes

China will need 5,260 new commercial planes over the next two decades, said Boeing (NYSE:BA), which will generate approximately $670 billion during the period.

While nowhere near as lucrative as the Chinese market, India will also be a major player for aircraft, with estimates that they'll need 1,450 new planes by 2031, which are valued at $175 billion.

For China, Boeing said that the majority of the deliveries will be for small and intermediate twin-aisles, which are represented by the Boeing 787 Dreamliner and 777.

As for single-aisle aircraft, Boeing sees overall deliveries reaching about 3,650 by 2031.

According to Randy Tinseth, Boeing Commercial Airplanes vice president of Marketing, over the next 20 years global expansion for Chinese should grow at a healthy 8.9 percent clip.

For all airlines, over the next couple of decades expenditures are expected to come in at about $4 trillion.

The question for makers of planes are how profitable these sales will be because they're battling it out for market share, which in some cases has resulted in slashing prices by as much as 50 percent to win the orders.

With higher fuel costs airlines are looking for streamlined planes to cut back on costs.

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