Boeing Co, surpassed in the last two years by Airbus SAS in the delivery of commercial aircraft, said it may raise its forecast for deliveries next year because of higher-than-expected demand from Chinese and Indian airlines.
China Southern Airlines Co, Air India Ltd and carriers from the two nations may order more planes next year, especially for smaller aircraft with single aisles, enabling Chicago-based Boeing to deliver "a little" more than an earlier target of between 375 and 385 planes, said Lee Monson, Boeing's Senior Vice President for sales in the Middle East and Africa.
"Demand is starting to increase rapidly," Monson, 51, said in an interview yesterday in Dubai in the United Arab Emirates.
"There is more demand than supply," he said, declining to be more specific about next year's target.
Growth among the airlines of Asia, where 10 low-fare carriers began flying last year, is leading global demand for new planes. Chinese airlines may need 1,790 new planes worth US$230 billion until 2023, while Indian carriers may need 570 new aircraft, Airbus said on March 8.
Boeing put the forecast at 2,300 planes valued at US$180 billion for China while India's airlines may spend US$35 billion on all new orders.
Airbus delivered more planes than Boeing last year for the second year, becoming the biggest manufacturer in the global market for new planes, valued at US$64 billion. Boeing is competing with Airbus which last week won a contract from AirAsia Bhd, Southeast Asia's biggest discount airline, for 60 planes worth US$3.8 billion in list price.
China, with its population of 1.3 billion people, is easing travel restrictions to let more people fly abroad for business and leisure, boosting air travel by 8.2 percent every year until 2023, compared with a global average of 5.3 percent, Airbus said, without giving its 2006 deliveries forecast.
"There are regions in China where the economy is growing 18 percent to 20 percent a year," spurring demand for airline travel, Boeing's Monson said.
Shanghai Airlines Co and China Southern have said they are adding more aircraft to their fleets, using newer and more fuel efficient planes to meet the country's demand for air travel and compete with foreign carriers.
Shanghai Airlines, based in China's biggest commercial city, said it plans to buy nine of Boeing's planned 787 planes for US$1.1 billion, based on catalogue prices.
China Southern, the country's largest carrier by fleet, said it will lease 25 aircraft made by Boeing and Airbus for delivery starting next year.
Air China, the country's largest international airline, is seeking government permission to sell bonds to raise up to 3 billion yuan (US$362 million) to buy new aircraft.
India's government plans to spend US$20 billion over the next five years expanding its two state-owned airlines and upgrading its airports to win passengers from regional hubs, including Singapore and Dubai.
Air India is planning to buy 68 planes from Boeing and Airbus to increase flights to the US, Europe and Asian countries. It will also expand its network to Australia and Canada.
Indian Airlines Ltd, which flies mostly domestic routes, is buying 43 planes and aims to offer more flights to Europe.
Other Indian carriers such as Jet Airways and Sahara Airlines Ltd last year won the Indian government's permission to fly overseas, including to the UK, US and Southeast Asia.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College