Boeing lifted its forecast for aircraft demand in China in the next two decades, saying a rising middle class would spur leisure and business travel would make it the first US$1 trillion dollar market.
The plane maker projects demand in China for 6,810 aircraft valued at $1.025tn, Boeing said in Beijing on Tuesday. The aircraft maker last year predicted China would need 6,330 new planes worth $950 billion in the next two decades.
In China, “we continue to see very strong passenger traffic growth. We’ve seen a very strong consumer segment of the market”, said Randy Tinseth, the vice president of marketing at Boeing Commercial Airplanes. “The good news for aviation is that is the segment of the economy that services the aircraft market.”
Carriers across Asia are expanding their fleets as economic growth makes air travel affordable to more people, lifting orders for Boeing and Airbus. The more-optimistic outlook from Boeing, which last year announced a plan to build an aircraft-completion centre in China, comes after it delivered a record number of planes to China in 2015.
The plane maker won more orders from Chinese carriers including China Southern Airlines’ Xiamen Airlines unit this year.
Passenger traffic will expand 6.4 per cent annually in China over the next 20 years, Boeing said.
About 71 per cent of the new aircraft demand in China will be for growth, the plane maker said. Including a retained fleet of 910 planes, China will have 7,720 aircraft by 2035, the company said.
The depreciation of the yuan has improved profitability of Chinese airlines and has not dampened orders at Boeing, Mr Tinseth said. The Chinese currency has weakened 4.6 per cent against the dollar in the past 12 months, the worst performer among 11 Asian currencies tracked by Bloomberg.
The aircraft-maker predicted China will need 5,110 new single-aisle jets with a market value of $535bn through 2035, or 75 per cent of total new deliveries. The widebody fleet will triple in size, requiring 1,560 new airplanes. China’s narrowbody and widebody fleet account for about 18 per cent and 5 per cent respectively of the global figures, Boeing said.
In September last year, Boeing said it will open a facility in China with Commercial Aircraft of China to paint, complete interiors of and deliver the single-aisle 737 aircraft to Chinese companies. The US company is still working closely with Chinese partners on the details and will issue a statement at a later date, Mr Tinseth said.
The plane maker said it expects 39,620 new aircraft valued at $5.9tn to be delivered worldwide in the next 20 years.
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Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
New schools in Dubai
MATCH INFO
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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