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Published: Tue, July 12, 2016
Economy | By Melissa Porter

Boeing, Airbus offer rosy outlooks for aircraft demand

Boeing, Airbus offer rosy outlooks for aircraft demand

The world's two biggest aeroplane makers also announced a flurry of multibillion-dollar jet deals at the biennial Farnborough Airshow that opened on Monday.

Indian passenger demand grew 20 per cent a year ago, versus 10 per cent in China and less than 5 per cent in the US, International Air Transport Association figures show.

Ihssane Mounir, Boeing's head of sales for northeast Asia, said growth is so strong in China that Boeing can not deliver all the planes the airlines want.

David Pitchforth, vice president and managing director of Boeing Defence UK Limited, said: "This is not only a major boost to the British Army but it will also mean long-term, sustained jobs in the UK as the vast majority of the training, maintenance, fix and overhaul will be done here over the service life of the aircraft".

Boeing meanwhile forecast Monday that passenger traffic would grow by an average 4.8 percent over the next 20 years, while Airbus put the figure at 4.5 percent.

There is, as usual, very little difference between total demand estimates underlying the Airbus and Boeing rolling 20 year market forecasts released at the Farnborough Airshow yesterday.

While a slowing of China's economy has made headlines, travel has continued to expand at double-digit rates as the country undergoes a fundamental shift to consumption and services and away from industrial production, Randy Tinseth, a Boeing vice president for marketing, said in an interview at the air show.

Boeing, however, predicts passenger traffic will grow by 4.8 per cent over the next two decades and that will help to double the global commercial aircraft fleets in that time.

Some industry executives sound more cautious, however.

Prime Minister David Cameron announced the deal at Farnborough airshow today.

The Farnborough air show takes off Monday amid turbulence from both Britain's shock European Union exit referendum and ultra-low oil prices.

Virgin Atlantic said it still had options to buy six of Airbus's A380 superjumbos, although industry sources have told Reuters that long-deferred deal is likely to be canceled. In the single aisle market, Airbus forecasts a need for more than 23,500 new aircraft worth US$2.4 trillion.

However, the Pentagon's chief arms buyer says he does not think the decision will fundamentally alter Britain's ties with the United States military or weapons-related trade.

Boeing expects sales to be concentrated in the 200- to 300-seat segment of the market, where the company sees demand for 5,100 wide-body jets.

Boeing Co. said it expects demand for 39,620 new planes worth $5.9 trillion over the next 20 years, an increase of 4 percent over the company's 2015 forecast.

Boeing said that Norwegian has committed to its GoldCare maintenance coverage for the airlines 737 Max fleet and expanded coverage for the airlines entire 787 Dreamliner fleet.

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