Airbus predicted on Thursday that demand for new aircraft would remain healthy over the next 20 years, based on expectations of steady air traffic growth in the developing world and the rapid expansion of low-cost carriers.
The prediction comes even as the world’s airlines are suffering a second straight year of steep losses.
The company forecast that airlines would buy nearly 25,000 new jets through 2028, with a market value of US$3.1 trillion.
That represented an increase of 2.7 percent from its previous forecast in February last year, when air carriers were reeling from the initial effects of the global economic crisis.
Airbus, which expects to secure orders for around 300 planes this year, also said the steep decline in world air traffic would probably stabilize next year and could rise by as much as 4.6 percent.
The company forecast a decline in traffic of 2 percent to 4 percent for this year.
The International Air Transport Association said on Wednesday that it expected the world’s airlines to lose a combined US$11 billion this year on top of a US$16.8 billion loss last year.
But despite those hefty losses, John Leahy, the chief salesman for Airbus, said that Airbus had seen relatively few order delays and cancelations.
“A lot of people have talked about massive cancelations in the recession, but that’s not really true,” Leahy said at a presentation in London.
He said Airbus had received fewer than 40 cancelations this year, less than 1 percent of the company’s order backlog of around 3,600 planes.
Still, Leahy acknowledged that many Airbus customers were having difficulty securing financing and had postponed deliveries — some by several years.
The company’s American rival, Boeing, has had at least 64 order cancellations this year.
Almost all of the cancelations were for its 787 Dreamliner, which has been delayed more than two years by production snags.
Analysts have warned that the ballooning industry losses are almost certain to lead to additional delays and cancelations of orders in the months to come.
Analysts at UBS forecast last month that there would be a global surplus of 1,400 commercial jets by the end of this year.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source