China's 2010 growth predictions have come up short in 2011. The downturn on air travel and cargo has been affected by reduced global and domestic demand. The 8% growth in both domestic and international air travel were lower than the 13% growth predicted by the Chinese news. The slowdown in demand for international and domestic passenger and cargo flights sets the stage for reduced demand for aircraft manufacturers. This slowdown will be felt by more than just the manufacturers, suppliers from all over the globe will also feel the slowdown from reduced orders for new aircraft. "State-run carrier China Eastern Airlines said this week that it had foregone an order for 24 Boeing 787 Dreamliners in favour of 45 737 planes, following delays in delivery of the ultra-modern Dreamliners". This news is obviously not good for China as it had hopes to continue the aviation boom it had over the last year.
In this article Airbus Chief Operating Officer John Leahy said that by the year 2030 in the aviation market China will be the second largest in the world only after the United States. Also as stated by John Leahy that new competition is good for the industry and is welcome. It is note worthy that China will be affecting the global aviation industry and should not be underestimated by competitors, and although China is currently experiencing a slump in the aviation sector the future looks promising.
The aviation industry in China will continue to grow and will eventually be giving the US a run for their money. According to officials at Boeing China's air fleet will triple by the year 2030, siting a value of around $600 billion US dollars in potential new aircraft sales, and creating the demand for 70,000 pilots. All this news points to strong career potential for aviation professionals in China and across the globe for the years to come.
I think China's aviation industry will continuously grow in the next decade forward despite the fact that the 2010 growth predictions have come up slightly short in 2011. Given the fact that by approximately the year 2030 the aviation market in China will become the second largest in the world, then most likely new aircraft manufacturers will emerge in this prosperous market such as the Aviation Industry Corporation of China and possibly others in addition to Airbus and Boeing. In my point of view, both Boeing and Airbus need to present themselves well to the Chinese aviation industry in order to continue their dominance the Asian aviation market in the next decade or so.
ReplyDeleteI appreciate the fact that you wrote about the current situation - although there is growth, less growth than expected. Would have like to have read more about specific job opportunities in the industry.
ReplyDeleteIt will be interesting to see if the projection of China’s air fleet tripling by the year 2030 becomes a reality. With countries of the world all vying for limited amounts of resources will there be a point where the price might dampen those numbers (produced by airbus).
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