The sales figures for Boeing in the Chinese market have been excellent. According to reported figures, the airplane manufacturer was able to sell over 1000 airplanes to the airline operators in China over a span of four decades, and surprisingly, the sale of the next 1000 planes has happened within a span of just 5 years.
This makes China a very important market for Boeing, considering the fact that one in every four airplanes which the company manufactures goes to the Chinese market, either through a lease or through the direct purchase method.
According to reported figures, the airplane manufacturer Boeing was able to sell over 1000 airplanes to the airline operators in China over a span of four decades, and surprisingly, the sale of the next 1000 planes has happened within a span of just 5 years.
Xiamen Airlines: Boeing’s Biggest Customer in China
The biggest Boeing customer in China is Xiamen Airlines, an airliner experiencing a very fast growth rate. Xiamen prides itself in the fact that they operate an all-Boeing fleet, in fact the biggest in China, with over 200 jets in their operations.
The latest addition to their collection is the 737 MAX, the new Boeing aircraft which is the eighth of its kind in the company’s portfolio, and this is also the 2000th plane which Boeing has sold in China. To commemorate its remarkable achievement, Boeing has branded this aircraft with a very special logo as well.
Xiamen is also availing post-sales services being offered by Boeing, namely the Boeing Global Services and also it is the only airline operator in the country which is using their Optimized Maintenance Program. According to Boeing, this program is essential for optimal maintenance of Boeing aircrafts as it capitalizes on the Boeing AnalytX module to provide maintenance plans of a customized nature to the company.
According to Che Shanglun, who is the Chairman of the airline company, this partnership between Xiamen and Boeing has been paramount in their ability to deliver consistent profitability for over three decades. The company credits Boeing for having provided airplanes that are deemed both reliable as well as safe by passengers, which has naturally contributed to the profitability of the company.
A Hike In Demand
Economists around the world agree that China is a rapidly growing economy, with high value exports that surpass most countries both in volume and in value. Since many companies have also outsourced manufacturing of their technological equipment to China, the number of professionals within the country has increased as well. Of course, that means that many people are travelling back and forth within the country as a natural course of their business operations, which, in turn, translates into an increasing demand for airlines.
Indeed, according to expert estimates, the Chinese market will be demanding approximately 7690 aircrafts within the next two decades, which cumulatively will cost the country around $1.2 trillion. This would, in effect, result in a twofold increase in the fleet currently operating within China. Estimates further than that have not been made as of yet, but if there are no exponential leaps in technology it can be safely said that this demand will only increase in the years following 2038.
Comparatively, China’s demand for aircrafts would be 17% of the total demand for aircrafts around the world, which means that the country is a very important stakeholder in the airline business. As expected, China takes part in the construction of these aircrafts as well by exporting parts to Boeing for some of its key products, including the 737 MAX.
There is also a center for the completion as well as delivery of these aircrafts located within the Zhoushan region of China, which is all set to deliver the first Boeing 737 MAX whereby the interior work and the exterior paintjob of the aircraft has been completed at this facility.
However, the aircraft would still undergo final assembly at the Renton Boeing factory, while the interior and exterior look has been transferred to this facility probably to expedite delivery of these in-demand aircrafts to the Chinese market.
As of today, Boeing delivers $1 billion in terms of economic activity to the country, which makes it a very important company for China.