China spends US$1 trillion on planes despite slowdown
China’s economy may have felt more than its share of financial turbulence this year, but it won’t stop the country buying up US$1 trillion worth of planes from Boeing.
The reason for the upsurge is because whatever about the current problems in the general economy, the aviation industry is growing at a rate or knots.
And airplane manufacturing giant Boeing says the country will will buy over 6,330 over the next two decades, which will help to play a massive part in the company’s financial success.
And Boeing’s Vice-President of marketing Randy Tinseth says that although China may currently be experiencing a tough time economically, Boeing’s longer term outlook was much more positive. And he stressed that traditionally the airline manufacturer tended to underestimate what demand might be like.
Business Insider UK also reports a Boeing spokesperson as saying they were confident the economy and the aviation sector would both recover to experience strong growth.
Boeing's bullish take stems from the fact that China’s airlines will totally dominate its own market, while growing exponentially abroad, particularly in North America, Europe and other parts of Asia.
And the verdict on growth from the Center for Aviation (CAPA) backs up Boeings position on the country’s financial well-being.
China’s own air carriers registered over 100 million passengers in the first three months of this year - a 13% rise on the same period last year.