Planemakers bet on China

For the world's major aircraft manufacturers, recession has led to a dramatic slump in orders from airlines, from a 1989 peak of 1,700 to just 440 in 1992. To make matters worse, the falling demand for civil aircraft has coincided with declining orders for warplanes, a market that in the past h...

Full description

Saved in:
Bibliographic Details
Published inAsian business Vol. 29; no. 11; p. 66
Main Author Moreno, Nick
Format Journal Article
LanguageEnglish
Published Hong Kong Times Publishing Corp (HK) Ltd 01.11.1993
Subjects
Air travel
Aircraft industry
Airlines
Airports
Alliances
Civil aviation
Competition
Impacts
International markets
Manufacturers
Manycompanies
Market potential
Passengers
Presidents
Purchase orders
Recessions
Regions
Sales
Subsidies
Peoples Republic of China
Asia
Online AccessGet full text

Cover

More Information
Summary:For the world's major aircraft manufacturers, recession has led to a dramatic slump in orders from airlines, from a 1989 peak of 1,700 to just 440 in 1992. To make matters worse, the falling demand for civil aircraft has coincided with declining orders for warplanes, a market that in the past has always propped up the large manufacturers in times of trouble. The one bright spot in this scenario is the Asia-Pacific region, and China in particular. According to Airbus and the International Civil Aviation Organization, the average annual traffic growth rate in the Asia-Pacific region is such that the region's share of the total world air travel market will grow from 20% in 1991 to 31% by 2011, overtaking the US as the largest market for aircraft deliveries. The reason for this rapid growth is that much of the Asia-Pacific travel market is extremely immature by world standards. The real money is in China, whose population of 1.2 billion increasingly wealthy people is driving long-term air travel growth in the region. The Civil Aviation Administration of China says China will need around 800 new aircraft between now and 2006.
ISSN:0254-3729
1560-7054