the world’s most-populous country is poised to also become the largest domestic aviation market and one of Boeing’s largest customers by 2033, according to Boeing’s Current Market Outlook. Already, China is home to some of the world’s biggest airlines in terms of revenue and passenger traffic. With more than 1.3 billion people, China has one of the fastest-growing economies and an expanding middle class looking to travel. To meet that need, Boeing forecasts China will need 6,020 new airplanes over the next two decades, accounting for 17 percent of worldwide demand for new airplanes, totaling a staggering $870 billion. “The potential growth there and what it means to our commercial business is unquestioned,” said Shep Hill, president of Boeing International and senior vice president of Business Development and Strategy. “But we also have partnered with China in a significant way.” The partnership includes Chinese suppliers, which Hill noted play a meaningful role in every one of Boeing’s commercial models, as well as significant research and development efforts. Through Boeing Research & Technology–China, Boeing works with more than 50 research institutions and local universities on projects aimed at supporting the sustainable growth of China’s aviation market. At the same time, Boeing Global Corporate Citizenship helps advance aviation education among children through the “Soaring with Your Dream” program. The range of activities reflects Boeing’s strategy of aligning its activities with the aspirations of the countries in which it operates, Hill said. And while targeted to the Chinese aviation sector, the solutions that come from the long-standing partnership may have wider applicability in other markets, added Ian Thomas, Boeing China president. “Our own objectives to be a more competitive global enterprise by tapping into pools of talent and capital and technology and market access around the world dovetail quite neatly with China’s consistent requirements that its 42 Boeing Fronti ers partners be doing just that in China,” Thomas said. “So this is really about mutual benefit and creating a win-win for both parties for the long term.” Boeing’s involvement with China’s aerospace industry dates back to 1972, when President Richard Nixon arrived there in a Boeing 707 and the Civil Aviation Administration of China subsequently purchased 10 of the airplanes, Thomas explained. Today, Airbus is a fierce competitor in China, and Chinese airlines operate about an equal number of Boeing and Airbus commercial jetliners. However, Thomas said that while China is a key market for both airplane-makers, Boeing has set itself apart by becoming part of China’s industrial fabric through its widespread collaboration. Approximately one in every four 737 deliveries goes to Chinese customers. According to Ihssane Mounir, vice president of Northeast Asia Sales, Commercial Airplanes, the 737 is well-suited to the needs of the emerging low-cost-carrier market with its high efficiency and low operating cost. He pointed to 9 Air, a relatively new low-cost carrier that last year committed to 50 737s—the first of which completed its inaugural commercial flight in December. “That was a major win for us,” he said, because 9 Air is a subsidiary of Juneyao Airlines, an all-Airbus operator. Other milestones in 2014 include China Eastern’s purchase of 80 737s, the largest order in terms of units ever placed by a single airline in China. Following Hainan Airlines and China Southern Airlines, Xiamen Airlines also took delivery of its first 787. The supplier relationship looks to be just as promising, according to Ian Chang, vice president of China Operations and Business Development, Boeing Commercial Airplanes. More than 8,000 Boeing airplanes flying around Photo: Soaring with Your Dream continues to expand its footprint to benefit more students. More than 75,000 students and 2,050 teachers from more than 1,280 schools have participated in the program. BoeinG
Frontiers February 2015 Issue
To see the actual publication please follow the link above