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Airbus, Boeing eye big share in China¡¡
Last Updated(Beijing Time):2004-10-08 09:49

The world's biggest aircraft makers, France-based Airbus and Boeing of the United States, are set to battle for the prized Chinese market highlighted by a Boeing market report and French president Jacques Chirac's visit to Beijing this weekend.

In its Current Market Outlook 2004 released Monday, Boeing forecast China would lead growth in air travel with demand in more mature economies growing at a slower pace.

Over the next 20 years, air travel growth was expected to expand by 8.1 percent a year in China, compared with 4.1 percent in Europe and 6.1 percent across the Pacific, Boeing predicted in the report.

The American company said the market share for the biggest planes such as its 747 or the larger challenger developed by rival Airbus, the double-decker A380, would shrink to four percent from six percent now.

"History shows that competition leads to an increase in new nonstop market and frequency growth, rather than an increase in average airplane size in seats," it said.

Boeing, which was knocked out of pole position last year by Airbus for sales of planes with more than 100 seats, has not yet received any Chinese order for its next-generation 7E7 Dreamliner jet.

While Boeing is still striving to promote its medium-haul, fuel-efficient 7E7, Airbus is betting its future on the long-haul A380.

The European company was hoping for an order of a dozen planes to emerge from Chirac's visit to Beijing, which was scheduled from Friday to Tuesday, French newspapers quoted presidential sources as saying Wednesday.

China could become the 14th customer for A380, buying five to 10 of the double-decker jets, which could be delivered before the 2008 Olympic Games, an Airbus spokesman said.

The deal, if signed, would give the European manufacturer a commercial lead over its U.S. rival in the promising Chinese market, analysts said.

According to Chinese aircraft maker China Aviation Industry Corp., the Chinese market will require 1,295 planes over the next two decades. However, Boeing estimates the demand at 2,127 and Airbus at 1,600.

The glaring estimates are based on strong growth by the country's three main airlines ¡ª Beijing-based Air China, Shanghai-based China Eastern Airlines and Guangzhou-based China Southern Airlines.

The market will further expand with the opening of the aviation sector and the expectation that domestic airlines would step up commercial alliance with international companies.

All the three main Chinese airlines, along with other comparatively small rivals, were aiming to join international alliances. Meanwhile, each international alliance was also striving to establish a foothold in the country, analysts noted.

China Southern Airlines has already signed an agreement to joint the Skyteam Alliance in 2005, which includes Air France and American carrier Delta Airlines.

 

Source:Shenzhen Daily