Domestic and regional growth helping drive single-aisle demand
Growth in China's domestic and regional markets has stimulated the need for single-aisle airplanes. According to data of the Civil Aviation Administration of China (CAAC), domestic passenger traffic has grown 12 percent annually over the past decade. A variety of factors are driving this trend. Since 2013, new airlines have entered the market, among them new low-cost carriers. Today, these new airlines make up 11 percent of all domestic flights, and as in other regions, it is expected that these new entrants will continue to stimulate the market.
In addition, new carriers, and domestic initiatives, are stimulating point-to-point travel. Over the past five years, airline capacity has grown more than 20 percent annually. Capacity for flights between or into the golden triangle (Beijing, Shanghai, and Guangzhou) and between metro airports with traffic of at least 10 million passengers has increased nearly 8 percent annually. Also, established Chinese airlines continue to grow their share of flights to such destinations as Northeast Asia, Southeast Asia, South Asia, and Oceania. Chinese airlines are now providing 54 percent of total capacity. As the market continues to grow, airlines in China will need 4,630 new single-aisle airplanes, valued at $490 billion.
Domestic and regional growth helping drive single-aisle demandGrowth in China's domestic and regional markets has stimulated the need for single-aisle airplanes. According to data of the Civil Aviation Administration of China (CAAC), domestic passenger traffic has grown 12 percent annually over the past decade. A variety of factors are driving this trend. Since 2013, new airlines have entered the market, among them new low-cost carriers. Today, these new airlines make up 11 percent of all domestic flights, and as in other regions, it is expected that these new entrants will continue to stimulate the market.In addition, new carriers, and domestic initiatives, are stimulating point-to-point travel. Over the past five years, airline capacity has grown more than 20 percent annually. Capacity for flights between or into the golden triangle (Beijing, Shanghai, and Guangzhou) and between metro airports with traffic of at least 10 million passengers has increased nearly 8 percent annually. Also, established Chinese airlines continue to grow their share of flights to such destinations as Northeast Asia, Southeast Asia, South Asia, and Oceania. Chinese airlines are now providing 54 percent of total capacity. As the market continues to grow, airlines in China will need 4,630 new single-aisle airplanes, valued at $490 billion.
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