China's Trillion Dollar Aircraft Spree

 
 

China is set to spend an astonishing $1 trillion on purchasing new aircraft over the next 20 years. To put that figure in perspective for anyone who's as bad at maths as I am - it's equal to 1,000 billion dollars or 1 million million dollars.

The prediction comes from research undertaken by aerospace giant Boeing, who expect it to be spent on a very specific 6,810 aircraft.

The fact that China's air travel market is growing at an astonishing pace is nothing new, but the size of aircraft order needed to fulfil that growth is nevertheless impressive.

According to CNN News, the acquisition of new aircraft on this scale will make China the first 'trillion dollar' market for airframe manufacturers, larger even than the USA.

Of course, not all of that spend will be going to Boeing. The American company competes heavily with European rival Airbus for orders in China, and the two currently enjoy an effective duopoly on the manufacture of medium and large commercial aircraft.

The status quo could be set for change, though. In July we reported that China's ARJ 21, developed by Comac, received 60 orders from China Aircraft Leasing at the The Farnborough Air Show.

For Comac, it represented a sale worth over $2 billion.

Although Comac's order is relatively small, it is nevertheless a significant step towards making inroads into the space that Airbus and Boeing currently dominate.





Related Articles
 
 
 
 
 
Airbus strengthens China ties

 

News | January 09,2018





Playing Spectrum Sino