Global aircraft demand is projected to grow significantly, with Boeing estimating 19,575 new deliveries by 2031 and Airbus forecasting 39,490 by 2041, driven largely by single-aisle jets like the Boeing 737 Max and Airbus A320neo due to their fuel efficiency.

Asia-Pacific, led by China and India, is expected to dominate growth, accounting for over 20% of global deliveries by 2040, fueled by economic expansion, urbanization, and a rising middle class.

North America and Europe will also see strong demand, with North America focusing on fleet expansion and Europe prioritizing sustainability through fleet modernization.

Aircraft manufacturers are innovating with sustainable designs, including advanced materials and efficient engines, while exploring alternative energy sources like hydrogen and electric propulsion.

Airbus has strengthened its position in the narrow-body market with large orders for the A321neo and expanded production in China, while Boeing is recovering from production delays with models like the 777X.

China’s COMAC is emerging as a competitor with its C919 aircraft, supported by government funding and targeting markets in Southeast Asia, Africa, and Latin America.

Geopolitical factors, such as U.S.-China tensions, are influencing market dynamics, with China’s recent purchase of 292 Airbus aircraft highlighting a shift toward European manufacturers.

Supply chain disruptions and rising costs are challenging manufacturers, delaying production timelines and increasing reliance on maintenance for older fleets.

Leasing companies are playing a growing role, controlling over 50% of the global fleet and focusing on fuel-efficient models to meet demand in high-growth regions like Asia-Pacific.

Sustainability goals are driving investments in technologies like sustainable aviation fuels (SAF) and lifecycle emissions reductions, reshaping the competitive landscape.

Global aircraft demand is projected to grow significantly, with Boeing estimating 19,575 new deliveries by 2031 and Airbus forecasting 39,490 by 2041, driven largely by single-aisle jets like the Boeing 737 Max and Airbus A320neo due to their fuel efficiency.

Title:

Content: Boeing cuts 20-year industrywide outlook for planes

3 minute read

Signage for Boeing is seen on a trade pavilion at Farnborough International Airshow in Farnborough, Britain, July 17, 2018. REUTERS/Toby Melville/File Photo

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LONDON, July 17 (Reuters) - U.S. airplane maker Boeing Co trimmed its projected industrywide demand for airplanes over the next 20 years, but said it expects deliveries to be stable excluding the Russian market.

Boeing projects airlines worldwide will need 41,170 new airplanes over 20 years with half of the deliveries for replacement aircraft, and with single-aisle aircraft accounting for about 75% of planes.

Boeing's new market outlook, released on Sunday ahead of the Farnborough Airshow, is down from its previous rolling 20-year-forecast of 43,610 deliveries.

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The new estimate excludes the Russian market and its projection of 1,540 airplanes, because of the war in Ukraine and uncertainty about when manufacturers could again sell planes to Russian carriers.

Boeing slightly boosted its forecast for demand over the next 10 years to 19,575 airplane deliveries -- a higher projection even excluding the Russian market.

"That's a function of a depressed environment in 2021 falling off and a new trend year in 2031 being added," Darren Hulst, Boeing vice president for commercial marketing, told reporters in a briefing ahead of the Sunday release. "It comes very close to our 2019" outlook if Russia was included.

Boeing also dropped its industrywide passenger traffic forecast growth rate slightly to 3.8% from 4%, but boosted its cargo growth forecast to 4.1% from 4% last year. It cut its fleet growth forecast to 2.8% from 3.1%. Its forecast for widebody deliveries over 20 years fell from 7,670 to 7,230.

Boeing still projects the global airline fleet by 2041 will nearly double as it still sees a worldwide aviation demand COVID-19 recovery by early 2024.

Over the next 20 years Boeing said "long-term fundamentals remain intact."

"Our view of medium-term recovery -- when the industry gets back to 2019 levels of global airline traffic -- is largely unchanged" since 2020, Hulst said. "Overall, we still see late 2023, early 2024 as the time where the industry recovers to full or at least the level of pre-pandemic traffic."

Boeing sees strong near-term demand for aircraft despite recession risks.

"The global industry is still on a recovery trajectory back to where the normal relationship of GDP and traffic would be," Hulst said. "Any small blip from an economy standpoint would be probably overwhelmed by the demand that exists as a result of those normal economic relationships."

Boeing also projects the freighter fleet will grow 80% by 2041. Air cargo is performing at "historic levels," Hulst said, saying it is in part "a function of the increasing strategic value of air cargo relative to supply chains that are challenged and shipping that is challenged."

Boeing sees e-commerce networks as helping to drive a "strategic shift to air cargo even into the medium- and long-term. ... This isn't just a blip in terms of shipping versus air."

Hulst said the number of routes with more than one airline operating has more than doubled over the last two decades -- representing 70% of all capacity. It demonstrates "the continuous innovation that airlines need to have to continue to compete at lower costs to attract more and more traffic."

Air cargo still only accounts for 1% of global trade. "A small shift in terms of mode of transportation, of key elements of trade, makes a big impact in terms of demand for air cargo," Hulst said.

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Reporting by David Shepardson; Editing by Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

Asia-Pacific, led by China and India, is expected to dominate growth, accounting for over 20% of global deliveries by 2040, fueled by economic expansion, urbanization, and a rising middle class.

Title:

Content: Cirium expects 45,000 more fuel-efficient aircraft to be delivered by 2040, worth $2.9 trillion
Cirium predicts that over the next 20 years, the world will spend $2.9 trillion on about 45,000 new aircraft.
• New aircraft expected to be delivered will replace the ageing fleet to meet projected annual growth of 3.7% in air passenger traffic
Single-aisle jets are expected to account for 70% of passenger aircraft deliveries by 2040
• China is expected to top the list with a 20% share in aircraft deliveries – the region ’ s air passenger growth is expected to exceed 6%
• Around 80% of existing passenger aircraft will be retired between 2021 and 2040
Over 3,500 freighter deliveries over the next 20 years – including new freighters and modified airliners
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An estimated 45,000 aircraft worth U.S. $2.9 trillion to be delivered by 2040.
Revealed in Cirium's new Fleet Forecast.
LONDON -- The newly released 2021 Cirium Fleet Forecast shows that around 45,000 new, more fuel-efficient aircraft will be purchased globally over the next 20 years, with an estimated $2.9 trillion in aircraft purchases.
According to the Cirium Fleet Forecast released by Ascend by Cirium, a consulting firm of aviation analytics firm Cirium, global cumulative aircraft deliveries for the next 20 years will be 4% higher than predicted a year ago by 2040.
The report outlines the positive outlook for the aviation industry and its recovery from the COVID-19 pandemic.
The COVID-19 pandemic has severely affected air travel, as well as aircraft deliveries.
Global aircraft deliveries fell by 43% - or 600 aircraft - in 2020.
Aircraft deliveries recovered somewhat in 2021, but are still 25% below 2019 levels.
Air travel is reopening as global vaccination programs become more widespread, leading to an increase of 300 aircraft deliveries in 2021 — a feat achieved when Boeing 787 was found to be problematic.
Rob Morris, Global Advisory Director, Ascend by Cirium, said: “The Cirium Fleet Forecast 2021 presents an optimistic long-term outlook for the aviation industry, which will return to a more traditional growth trajectory after 2024, although structurally different from before.
Air passenger traffic is expected to grow at an annual rate of 3.7%, so the global passenger fleet will need to increase by almost 22,000 aircraft.
“If the above projections are realized, the global passenger fleet will reach the size of about 47,200 aircraft by the end of 2040. ”
The projected delivery of new aircraft will not only meet the growing demand for air transport, but will also replace older aircraft that are less fuel efficient. "
China leads in aircraft deliveries
The number of aircraft deliveries will vary depending on the region where the airline is located, and the Asian market is expected to be the growth engine.
China is expected to lead the world with more than 6% growth in air passenger traffic – also topping the list in aircraft deliveries, accounting for 20% of the world ’ s total.
China ’ s delivery figures are significantly ahead of all other Asia-Pacific countries, which together account for 22% of the total.
North American carriers are expected to account for 20 percent, while European carriers will account for 17 percent.
The Middle East is estimated to account for 7% of the share, but because the region will deliver a large number of twin-aisle aircraft, it will account for 11% in terms of aircraft value.
Latin America, which is similar to the Middle East, will also account for 7%.
Russia and the Commonwealth of Independent States (CIS) accounted for 4%, and Africa accounted for 3%.
Most of the new deliveries will be single-aisle jets
The fleet forecast report shows that over the next 20 years, single-aisle jets will account for 70% of total aircraft deliveries and 55% of total delivery value.
The total value of newly delivered single-aisle jets is $1.6 trillion.
The mainstream model will still be the 150-seat aircraft, represented by the Airbus A320neo and Boeing 737 Max 8, which will account for 50% of deliveries.
Popular models with more than 180 seats include the A321 neo and the B737 Max 10, which will have an increasing share each year and will account for 40% of deliveries over the next 20 years.
Airbus and Boeing are expected to develop a new generation of single-aisle aircraft in the early to mid-2030s.
The $1.1 trillion dual-aisle aircraft market will be dominated by the B787 and A350 models, with 250-300-seat “medium ” aircraft accounting for about 65% of the total value delivered.
The large passenger aircraft market will be contested by the A350-1000 and the B777-9.
Aircraft deliveries in regional markets are expected to reach a scale of $150 billion.
About a third of them will be turboprop aircraft, based on 70-seat models.
Starting in 2030, a larger 90-seat model will enter the market.
Future new aircraft projects in the market include the MA700 from China and an expected new line of aircraft from Embraer.
Older models will be replaced by a new generation of aircraft.
It is predicted that about 80% of current passenger aircraft will be out of passenger service between 2021 and 2040.
As the airline industry begins to focus on driving down carbon emissions and focusing on sustainability, it will become increasingly important to replace these older, more fuel-efficient aircraft with new models.
Overall, in addition to several relatively new aircraft that are being phased out earlier, around 19,000 aircraft in the global passenger fleet will be phased out by the end of 2020.
According to analysis by Ascend by Cirium, the average economic life expectancy for single-aisle aircraft is 22 years and for twin-aisle aircraft is 20 years.
The number of freighters is growing: including new freighters and refitted freighters
As the global freight industry continues to perform strongly, freighter capacity (based on available tonnage kilometres) is expected to grow by 3.3% over 2019, with a projected supply of around 3,500 freighters over the next 20 years.
Of this total, it is expected that 30 per cent will be new freighters and 70 per cent will be converted from passenger aircraft.
About 1,050 new freighters are expected to be shipped, valued at $121 billion.
More online shopping during the epidemic period has promoted the development of e-commerce, and the growth of e-commerce has promoted the conversion of airliners to freighters.
Modification projects are focused on newer models such as the A321, B737-800, A330 and B777-300ER.
The Cirium Fleet Forecast is an independent outlook report on the global commercial passenger and cargo aircraft market, based on the industry ’ s premier combination of data and years of expertise.
Click here to download the executive summary of the Cirium Fleet Forecast 2021.
About Cirium
Cirium is a company that combines powerful data and analytics services to drive the world ’ s continued growth. With decades of industry experience, Cirium provides clients with expert insights to help companies, aircraft manufacturers, airports, airlines and financial institutions make informed business decisions that shape the future of the travel industry, improve business returns and improve customer experience. RELX PLC is the world ’ s leading provider of information and data analytics to professional and commercial customers across a wide range of industries.
Shares of parent company RELX PLC are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX.
Visit cirium.com for more information or follow Cirium ’ s LinkedIn account and WeChat account, CiriumCN.
Disclaimer: The original version of this announcement is the official authorized version. The translation is for convenience only. Please refer to the original version, the original version is the only version with legal effect.
Contacts
For media inquiries, please contact:
Cirium Media Team
Rachel Humphries / June Lee
media @ Cirium.com
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Paul Charles / Michael Johnson / Callum McGoldrick
Cirium @ pc.agency
Contacts
For media inquiries, please contact:
Cirium Media Team
Rachel Humphries / June Lee
media @ Cirium.com
The PC Agency
Paul Charles / Michael Johnson / Callum McGoldrick
Cirium @ pc.agency

North America and Europe will also see strong demand, with North America focusing on fleet expansion and Europe prioritizing sustainability through fleet modernization.

Title:

Content: China surging news reported on the 15th, the United States Boeing released the 2021 version of the "Civil Aviation Market Forecast" report on the 14th, noting that basically, the global market is recovering according to the company's 2020 expectations.
The recovery in domestic air travel demand is leading the trend, with the interregional market expected to recover with the relaxation of hygiene and travel restrictions, and eventually remote international travel will return to pre-pandemic levels in 2023-2024.
In the next 20 years, the demand for new aircraft will reach 43,610, the highest in the North American market is 9,160, and the demand in China is 8,700.
The report pointed out that the economic recovery has laid the foundation for a rebound in air passenger traffic, and the future prospects for air passenger traffic will remain stable.
Looking forward to 2025, GDP will increase by more than 15% compared to 2019, and GDP per capita will increase by about 10%.
The 21-year average passenger flow growth from 2019 to 2040 is expected to be 4%, in line with last year ’ s forecast, indicating that the basic global demand for air transport has not changed.
The report predicts that due to cyclical and structural market dynamics, the future air cargo market demand is strong, and full cargo aircraft is a significant growth area, including original cargo aircraft and modified cargo aircraft are forecast to increase from the previous year.
Thanks to the growth of e-commerce and the speed and reliability of air cargo, the world cargo fleet will increase from about 2,000 in 2019 to about 3,400, and the sustainable demand for air cargo will increase the global cargo fleet by more than 70% compared to the pre-pandemic size by 2040.
Notably, the report predicts that the world will need 19,000 civilian aircraft worth $3.2 trillion in the next 10 years, and demand for more than 43,500 new aircraft worth $7.2 trillion in the 20-year period to 2040, an increase of about 500 over the previous year ’ s forecast.
Among them, as of 2040, the demand for regional jets is 2,390, single-aisle aircraft 32,660, wide-body aircraft 7670, wide-body cargo aircraft 890, and aircraft demand totals 43,610.
The North American market has the highest demand, at 9,160, and the Chinese demand is 8,700.
This demand will lead to a 3.1% annual growth in the global active fleet, with the global civil aviation fleet set to surpass 49,000 by 2040, China, Europe, North America and Asia Pacific each accounting for 20% of new aircraft deliveries, with the remaining 20% going to emerging markets.
Traffic disruptions have a significant impact on aircraft deliveries and active fleets due to the pandemic. The report anticipates that the civil aviation industry will need more than 7,500 new wide-body aircraft by 2040 to meet fleet renewal and long-term growth in demand in the remote passenger and cargo market.
These demand increased slightly from the previous year, but decreased by 8% from 2019.
At present, single-aisle aircraft account for nearly 64% of the global passenger fleet, and single-aisle aircraft account for the largest proportion of new aircraft deliveries, roughly in line with pre-pandemic forecasts, accounting for 75%, and demand for more than 32,500 aircraft over the next 20 years.
The report notes that global demand for new single-aisle aircraft is driven by the size and flexibility of single-aisle aircraft.
In the future, these new single-aisle aircraft will continue to promote the development of low-cost airlines and provide the needed alternatives for older, less efficient aircraft.
The three regional markets for the new single-aisle aircraft are Asia Pacific, Europe and North America, which account for more than 80% of global low-cost airline capacity in 2019 and throughout the forecast period.
In addition, the report predicts long-term growth in the short-haul market, especially in emerging markets, and predicts that intra-regional short-haul travel accounts for more than half of the industry ’ s total growth demand, with inbound travel alone accounting for 17% of the industry ’ s new capacity.
Historically, excursions have been spurred by improved services, such as new direct routes and lower fares through low-cost airlines.
The report predicts that the share of Asian airlines in the global market will continue to increase, with China ’ s passenger share expected to grow from 15% in 19 years to 20% in 2040, and Asia Pacific ’ s passenger share expected to grow from 18% in 19 years to 21%.
# Growth # Planes # Forecasts # Future # Markets

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

Aircraft manufacturers are innovating with sustainable designs, including advanced materials and efficient engines, while exploring alternative energy sources like hydrogen and electric propulsion.

Title:

Content: Friday, 08 September 2023 05:25 GMT

Global Single-Aisle Aircraft Market Is Projected To Reach The Value Of $222.20 Billion By 2030 X Herald

(MENAFN- Ameliorate Digital Consultancy) According to the latest report by Virtue Market Research, in 2022, the Global Single-Aisle Aircraft Market was valued at USD 86.6 billion and is projected to reach a market size of USD 222.20 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 12.5%.

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A prominent long-term driver for the Single-Aisle Aircraft market is the growing global demand for air travel. Even though the COVID-19 pandemic had a severe impact on the aviation industry, the long-term trend remains robust. The demand for single-aisle aircraft is fueled by several factors, including the expansion of low-cost carriers, increasing urbanization, and rising middle-class populations in emerging economies.

The COVID-19 pandemic had an unprecedented impact on the aviation sector, leading to grounded fleets, reduced passenger demand, and financial strain on airlines. This setback prompted airlines to rethink their fleet strategies, with some deferring aircraft orders and retiring older aircraft to cut costs. Additionally, the pandemic accelerated the adoption of safety and hygiene measures in aircraft cabins, leading to increased investments in cabin air filtration and touchless technologies.

A notable short-term driver for the Single-Aisle Aircraft market is the rebound in domestic and regional air travel. As countries reopen their borders and vaccination efforts progress, there is a growing preference for shorter flights, leading to increased demand for single-aisle aircraft. Airlines are reactivating grounded aircraft and placing orders for new, fuel-efficient models to meet this surge in regional travel.

An exciting opportunity in the Single-Aisle Aircraft market is the development of next-generation, fuel-efficient aircraft. With a growing emphasis on sustainability and reducing carbon emissions, aircraft manufacturers are investing in research and development to create more eco-friendly models. This includes the use of advanced materials, aerodynamic improvements, and more efficient engines. Airlines that invest in these next-gen aircraft can not only reduce their environmental footprint but also benefit from lower operating costs in the long run.

One of the prominent trends observed in the Single-Aisle Aircraft industry is the rise of digitalization and connectivity. In-flight Wi-Fi, entertainment systems, and integrated passenger services are becoming standard features in modern single-aisle aircraft. Airlines are leveraging these trends to enhance the passenger experience and gain a competitive edge. Additionally, digitalization plays a crucial role in aircraft maintenance and operations, helping airlines optimize their fleet performance and reduce downtime.

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Segmentation Analysis:

The global Single-Aisle Aircraft Market segmentation includes:

By Type of Aircraft: Narrow-Body, Wide-Body, Regional Aircraft

Among these, the Narrow-Body aircraft category stands out as the largest segment. These aircraft are designed for short to medium-haul flights and are favored by airlines for their versatility and cost-efficiency. Narrow-Body aircraft are well-suited for both domestic and international routes, making them the preferred choice for many carriers.

In terms of growth, the Narrow-Body segment takes the lead yet again. The market for Narrow-Body aircraft is witnessing significant expansion due to the increasing demand for regional and domestic travel. Airlines are looking to replace older aircraft with more fuel-efficient and environmentally friendly Narrow-Body models, driving the growth of this segment.

By Engine Type: Turbofan, Turboprop

Among these categories, Turboprop engines are the largest segment. These engines are commonly found in regional aircraft that operate shorter routes and require a different set of performance characteristics compared to their Turbofan counterparts. Turboprop engines are known for their fuel efficiency and reliability, making them a preferred choice for regional carriers.

However, when it comes to growth, Turbofan engines take the lead. The demand for Turbofan-powered Single-Aisle Aircraft is on the rise, driven by the need for higher efficiency, reduced emissions, and greater operational range. Airlines are increasingly opting for Turbofan engines in their narrow-body aircraft to meet the growing demand for longer-haul regional and international flights.

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Regional Analysis:

The Single-Aisle Aircraft market spans across variregions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Each of these regions has its unique characteristics and influences on the market.

Asia-Pacific emerges as the largest region in this segment. This region encompasses numerfast-growing economies, a burgeoning middle class, and a robust travel and tourism industry. As a result, airlines in Asia-Pacific have been expanding their fleets to meet the increasing demand for air travel. With a foon domestic and regional routes, narrow-body aircraft have been particularly favored in this region, contributing to its leadership in the Single-Aisle Aircraft market.

In terms of growth, Europe takes the lead. Despite being a mature aviation market, Europe is experiencing a surge in demand for narrow-body aircraft, primarily due to the need for more fuel-efficient and environmentally friendly options. European airlines are increasingly looking to modernize their fleets with state-of-the-art single-aisle aircraft, thereby driving the growth of this segment in the region.

The Middle East & Africa region also shows promise in terms of growth, driven by the emergence of airlines in the Middle East as major global players. These airlines are expanding their networks and investing in modern, fuel-efficient narrow-body aircraft to meet the growing demand for long-haul travel.

North America, with its well-established aviation industry, continues to be a significant market for single-aisle aircraft. While it may not be the fastest-growing region, North America remains a stable and vital market for these aircraft, catering to both domestic and international routes.

South America, although a smaller market compared to the other regions, also contributes to the demand for single-aisle aircraft. Airlines in South America are focusing on modernizing their fleets to enhance operational efficiency and reduce emissions.

Latest Industry Developments:

  • One of the key strategies adopted by companies is a strong emphasis on fuel-efficient and environmentally friendly aircraft. With the aviation industry facing increasing pressure to reduce carbon emissions, manufacturers are investing in the development of next-generation single-aisle aircraft with improved fuel efficiency. This includes the use of advanced materials, aerodynamic design enhancements, and the incorporation of more fuel-efficient engines. Furthermore, there is a growing trend towards the electrification of aircraft systems, including electric taxiing systems and more electric aircraft architectures. These innovations aim to reduce the overall carbon footprint of single-aisle aircraft, aligning with global sustainability goals.
  • To enhance their market share, aircraft manufacturers are expanding their global reach and customer base. They are targeting emerging markets with fast-growing air travel demand, such as Asia-Pacific and the Middle East. These regions represent significant opportunities for fleet expansion, especially with narrow-body aircraft designed for short- to medium-haul routes. Another trend is fleet modernization. Airlines, particularly in mature markets like North America and Europe, are retiring older aircraft and replacing them with state-of-the-art single-aisle aircraft. This trend is driven by the need to improve operational efficiency, reduce maintenance costs, and enhance passenger comfort. Manufacturers that offer the latest technology and fuel-efficient options have a competitive advantage in this regard.
  • Connectivity and digital solutions are becoming increasingly important in the aviation industry. Airlines are seeking aircraft equipped with advanced connectivity options to enhance the passenger experience, provide in-flight entertainment, and enable seamless inteaccess. Manufacturers are responding by integrating cutting-edge connectivity solutions into their single-aisle aircraft offerings. Additionally, the use of data analytics and predictive maintenance has gained prominence. Airlines are leveraging data from their aircraft to optimize operations, reduce downtime, and lower maintenance costs. Aircraft manufacturers are incorporating these features into their products to meet the demand for data-driven solutions.

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Virtue Market Research stands at the forefront of strategic analysis, empowering businesses to navigate complex market landscapes with precision and confidence. Specializing in both syndicated and bespoke consulting services, we offer in-depth insights into the ever-evolving interplay between global demand and supply dynamics. Leveraging our expertise, businesses can identify emerging opportunities, discern critical trends, and make decisions that pave the way for future success.

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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

It is working on adopting innovative strategies.

Airbus has strengthened its position in the narrow-body market with large orders for the A321neo and expanded production in China, while Boeing is recovering from production delays with models like the 777X.

Title:

Content: Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Airbus delivers China ’ s first combined aircraft to Europe ’ s largest low-cost airline
A European airline has taken delivery of the first Airbus A321neo assembled aircraft in China, Xinhua News reported on Thursday.
According to the Chinese network, the plane was assembled on the final assembly line in the northern Chinese city of Tianjin before being delivered to Hungarian company Wizz Air at a ceremony in Tianjin on Tuesday.
Hungary ’ s Wizz Air, which took delivery of the plane, is the largest low-cost airline in Central and Eastern Europe.
In line with China ’ s economic recovery
Airbus said the delivery of the first aircraft assembled in China to a European customer was a milestone for its Chinese subsidiary Airbus Tianjin.
Christophe Shrimp, general manager of Airbus Tianjin, said that in the midst of China's economic recovery, the Asian final assembly line continues to strengthen its capacity to meet the demands of international customers.
Shrimp noted that this is in line with China's strong economic recovery.
To meet the growing demand for A321 aircraft, Airbus has announced its plan to expand the capacity of its Tianjin assembly line to produce the model in 2021.
The A321 Neo, the largest in the A321 family, has a passenger capacity of 244.
The final assembly line in Tianjin, China, marks Airbus ’ first commercial aircraft assembly line outside Europe, and dates back to 2008.
In April, Airbus announced the construction of a second assembly line in Tianjin to expand the production capacity of the A320 family of passenger aircraft to meet the demand of global customers.
Airbus competes fiercely with Boeing every year for aircraft orders.
Although they have a wide range of products in different segments from single-aisle to wide-body, their aircraft do not always compete head-to-head.
Instead they respond with slightly smaller or slightly larger models in order to fill any gaps in demand, and achieve a better advantage.

What happened to the market shares between Boeing and Airbus after the Covid-19 crisis?

Airbus announced order intent for 408 new aircraft, while Boeing has secured contracts for 78 aircraft.

China’s COMAC is emerging as a competitor with its C919 aircraft, supported by government funding and targeting markets in Southeast Asia, Africa, and Latin America.

Title:

Content: China's COMAC rivals Boeing and Airbus target Asia
T + T - normal size
On the first test flight of the C919 out of China, state-backed aircraft maker Comac flew to Singapore, a clear sign that potential Boeing and Airbus competitors see Southeast Asia as the best selling opportunity for overseas markets.
Comac said in a statement on Chinese social media: “This could be the cornerstone of our emerging market in Southeast Asia. ”
After Singapore, the company went to Vietnam, Laos, Cambodia, Malaysia and Indonesia.
With government support of up to $72 billion over the past 15 years, the single-aisle development is seen as a major step forward in implementing President Xi Jinping ’ s vision of China leading the technology value chain and further challenging its Western rivals, especially as Boeing ’ s safety record is being scrutinized after a door-panel exploded in January.
“The C919 has a strong opportunity to gain market share, particularly in the domestic market, ” said Mike Yumans, director of assessments and consulting at IAA Aviation Consulting, noting that rival aircraft from Airbus and Boeing are sold until around the end of this decade, but added:“ The immediate challenges for COMAC are in terms of production, meeting domestic demand, and obtaining certification to penetrate international markets. ”
Since the C919 ’ s inaugural commercial flight in May, only five aircraft have entered service domestically, all delivered to state-owned China Eastern Airlines, and Yiomans sees the Chinese market as the biggest near-term opportunity for the C919.
Although the C919 has not yet been approved by air authorities in Europe and the United States and can only operate commercially within China, aviation analysts say regulators in some Southeast Asian, African and Latin American countries could approve it faster.
Indonesia ’ s Transnusa, which is partly owned by China Aircraft Leasing Group, already operates two of the ARG21, the smaller version of the Comac.
Shakur Yusuf, founder of aviation consultancy Indow Analytics, said: “If an airline flies COMAC to countries where regulatory authorities have approved the aircraft, there is no reason for potential buyers to worry about what the US or EU are saying.
The timeline for obtaining license certificates from the EU and the US remains unclear, meaning that despite the scrutiny Boeing is under, Airbus is likely to benefit more than COMAC, according to Xiao Wenfu, a professor of transport economics at the Hong Kong Polytechnic University.
Fu also noted that the production rate of the C919 is still growing slowly, while Comac said it had received 1,061 orders as of last year from Chinese domestic airlines and air charter companies, and would likely only deliver nine aircraft this year, according to IBA.
The rate is expected to rise to 70 aircraft per year by the end of the decade, but despite this increase, the volume of production remains less than one month from Airbus ’ s capacity to produce single-aisle aircraft.
The aircraft could have an approximate 8% share of the single-aisle market in China and only 1.2% share globally by 2030, if COMAC can successfully increase production.
Willie Walsh, president of the International Air Transport Association (IATA), said: “It will probably take 20 years for COMAC to compete with Airbus or Boeing on a global scale.
Comac will be a major player in the market, but it will take some time for real international interest to emerge. ”
Two aircraft leasing companies based in Asia told the Financial Times they were reluctant to buy the C919 in bulk due to a lack of international certifications and uncertainty about customer orders.
Max Zinglin, chief economist at Mercator Institute for Chinese Studies, said Comac, which did not respond to requests for comment, appeared to be taking a cautious approach to ramping up production because “any major safety issue would be a huge setback ”; however, others said Comac, with its massive government support, would be able to ramp up production in time.
Yousef, from Indow Analytics, said: “We never underestimate China ’ s ability to increase production, as China is not understaffed, unlike Airbus and Boeing, and more importantly, it has money. ”
But for Comac, it must produce planes “consistently and safely, ” he added,“ it won ’ t be as easy as making electric cars or mobile phones, ” especially as the C919 still relies heavily on foreign suppliers.
Comac relies heavily on Western suppliers of key components, including engines supplied by France ’ s CFM and auxiliary power units supplied by Honeywell, making it vulnerable to geopolitical tensions.
While Chinese manufacturers want to replace some Western components with homemade alternatives, it will take years to do so in a way that is in line with international commercial aviation safety standards.
Richard Aboulafia, director of Aerodynamic Advisor, said the US and UK still dominate the production of commercial aircraft engines, while Yusuf said: “Realistically, COMAC is not in a position to threaten Airbus and Boeing, but time is on its side. ”
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Geopolitical factors, such as U.S.-China tensions, are influencing market dynamics, with China’s recent purchase of 292 Airbus aircraft highlighting a shift toward European manufacturers.

Title:

Content: China signs 292 Airbus planes for US lemons
Author: Lu I
Published: Updated:
In the atmosphere of celebrating the 25th anniversary of Hong Kong ’ s return to China, an important piece of news is overlooked, but its significance cannot be underestimated. On July 1, China ’ s three major aviation groups announced an agreement with Airbus to purchase a total of 292 A320NEO series aircraft from Airbus at a total price of more than RMB 240 billion (China Southern, China Airlines and China Eastern respectively purchase 96, 100 aircraft from Airbus). A320NEO series aircraft, the basic price is about 12.248 billion US dollars, 12.213 billion US dollars, 12.796 billion US dollars).
This is the first time in nearly three years that China ’ s civil aviation industry has announced such a large number of aircraft orders.
This is also China's second major purchase of jet commercial aircraft since China Aviation Equipment Group signed a purchase agreement involving 300 aircraft with Airbus in France in 2019.
At that time, China purchased 290 A320 series and 10 A350 series models.
All orders are for the A320 series.
According to data released by Airbus and Cirium, the aviation data analysis agency, as of May this year, Airbus had a total of 1,771 single-aisle trunk aircraft operated by mainland Chinese airlines, accounting for 55% of the market in this category.
After World War II, aviation giants such as Boeing in the United States have always occupied an overwhelming position in the global commercial aircraft market, and commercial aircraft in European countries cannot withstand the pressure of competition from the United States and once succumbed to defeat.
Now in the Chinese market, Airbus and Boeing ’ s most critical market, the two differ, and it is clear that Boeing has been in a decline.
And it ’ s not as simple as the economy on the surface.
Boeing "Lemon"
Boeing expressed disappointment over the order of 292 Airbus aircraft by Chinese airlines, saying that "constructive dialogue" between European governments and Beijing had led to this major acquisition, and urged the U.S. and Chinese governments to engage in productive discussions.
Boeing said in an emailed statement: “As the largest U.S. exporter with a 50-year relationship with the Chinese aviation industry, it is disappointing that geopolitical differences continue to limit U.S. aircraft exports. ”
Boeing ’ s sales to China have historically supported tens of thousands of jobs in the United States, and we expect to quickly resume orders and deliveries. ”
Boeing has historically regarded a Chinese airline as its biggest customer, but its operations in China have slowed after two crashes of its best-selling 737 Max model and heightened political tensions between the United States and China.
In May, China Southern removed more than 100 Boeing 737 Max aircraft from its recent fleet plan due to delivery uncertainty.
So far this year, Boeing has delivered just one commercial aircraft to China, while Airbus has delivered 47.
And a few days ago, an article on the US politico website used to smear Airbus to make an excuse for Boeing ’ s declining share in the Chinese market.
The title of the article is “Report says that EU Airbus has deep ties with China ’ s military-industrial complex ” and that while Boeing ’ s aircraft sales in China have been hit by the U.S.-China trade war under former US President Donald Trump, Airbus has had greater success in China.
The US media is full of "envy and jealousy" for the development of Airbus in China, which is completely unreasonable speculation.
Product performance and other factors are an important basis for Chinese airlines to choose to cooperate with Airbus. The United States does not reflect on Boeing's aircraft performance, safety and other problems, and blindly from the geopolitical point of view to speculate between China and Europe civil aviation procurement cooperation, it is simply unable to solve its own decline in the Chinese market share of the real dilemma.
Airbus is very attentive in China.
China has long been a key market for Airbus and its U.S. rival, Boeing, as both companies struggle to expand their presence in China.
Since the Max grounding, Airbus has come a long way ahead of Boeing in competing for passenger orders and market share.
Airbus said that as of the end of May 2022, the total number of active Airbus fleet owned by Chinese airlines exceeded 2,070.
This includes not only jet aircraft, but also a variety of products such as helicopters.
By the end of 2018, the number of Airbus civilian aircraft in service in China had exceeded 1,700, and the total number of aircraft delivered to China accounted for nearly a quarter of Airbus ’ total deliveries.
Air Passenger official website announced that it has obtained a large order in China. (File picture)
It ’ s worth noting that since entering the Chinese market in the mid-1980s, Airbus has been localized like several other multinationals.
According to the official website of Airbus, Airbus civilian aircraft in China, including joint ventures located in various parts of the country, have more than 1,900 employees.
Among them, many employees work at the A320 series aircraft assembly line in Tianjin, China.
This assembly line opened in 2008. In October 2020, the 500th aircraft produced by this assembly line was delivered to customers. In 2017, the new A330 aircraft completion and delivery center opened in Tianjin, China.
Located on the same campus as the A320 Series Asia Terminal and the Airbus Tianjin Delivery Center, the center is Airbus ’ first wide-body aircraft completion and delivery center outside Europe and is responsible for cabin installation, painting, flight testing, customer acceptance and delivery of the A330 aircraft.
It is particularly worth mentioning that the A320NEO series aircraft purchased this time, from a product performance perspective, the A320neo series integrates new technologies such as a new generation of engines, which can reduce fuel consumption by 20% and significantly reduce the cost of airlines.
To meet growing orders, Airbus is pushing ahead with plans to increase production of its best-selling A320 series aircraft to 75 per month by 2025.
In addition, in November 2017, the Airbus China Innovation Center was located in Shenzhen, China, with the intention of accelerating innovation in the aviation sector by leveraging Shenzhen ’ s global competitive advantages in technology research and development, industrialization, and international expansion.
In 2019, Airbus and China signed a Memorandum of Understanding on Further Industrial Cooperation, marking the continued strengthening of the long-term partnership between Airbus and China.
Recently, on June 24, 2022, Airbus China R & D Center signed a contract to settle in Suzhou Industrial Park.
Airbus is committed to leading the decarbonization process in the aerospace industry, and the company is working to bring the world ’ s first zero-emission civilian aircraft to market by 2035.
The establishment of the R & D center further expands Airbus ’ industrial footprint in China, demonstrating Airbus ’ roots in China and deepening cooperation.
The political implications of 292 aircraft
There is no doubt that this big order should be the result of a very long and arduous negotiation.
When the NATO strategy lists China as a “challenge ”, it is also worth playing with.
A real transcript, directly ripped apart the reality of the different tones of Europe and America.
The reality is here – there is no fundamental contradiction between China ’ s and Europe ’ s interests, or at best, ideological differences.
Geographically, there are no contradictions between China and Europe; economically, there are no contradictions in the complementary relationship between China and Europe; and the common interests of Sino-European cooperation are objectively far greater than contradictions.
The NATO of the United States wants everyone to work together against China. Although the NATO of the European Union also hopes to contain and suppress China, it also hopes to gain benefits from cooperation with China.
China is also very clear that there are strategic differences between the United States and Europe on the issue of China, which is determined by the fundamental interests of the two, and Europe has no hegemony and no power to seek hegemony, so there is no strategic contradiction in the nature of China and Europe.
The Chinese market is so large that the passenger aircraft market alone is a trillion-dollar business, and the only companies in the world that can produce large passenger aircraft are Boeing and Airbus. Who are China's orders to?
The order itself, in practical behavior to tell the world, China is the world's largest market, any country as long as it cooperates with China, can get a substantial enough economic return.
Obviously, the reality is that cooperation can win, not oppression and discredit.
The China-Europe Investment Agreement has not yet been signed, and if it is signed, the benefits will be even greater.
In 2022, as the world is looking forward to economic recovery, the global economy has encountered great challenges.
In the first quarter, the US economy grew negatively on a monthly basis, and the European economy grew almost zero.
For the European economy, it needs a huge incremental market to stimulate, and it needs stable market demand, which only China can provide, and the Central European economy is very complementary.
Europe and the rest of the world need to think calmly about whether to be "kidnapped" in a tank or to seek development.
You may be interested

Supply chain disruptions and rising costs are challenging manufacturers, delaying production timelines and increasing reliance on maintenance for older fleets.

Title:

Content: The global supply chain crisis has spread to the aviation industry, with aircraft manufacturer Airbus revealing that the supply of its best-selling single-aisle narrow-body passenger aircraft is in short supply, so deliveries of narrow-body passenger aircraft will be limited in the next three years due to disruption from the supply chain.
The Wall Street Journal reported that Airbus Chief Financial Officer Dominik Asam said in an interview that during the coronavirus epidemic, many airlines stopped ordering aircraft and even chose to postpone or cancel orders, but the epidemic has slowed down and airlines are beginning to hope to deliver new aircraft as soon as possible.
“The challenge we face is not being able to deliver aircraft in the short term, and the supply chain is not producing parts fast enough, ” said Dominik Asam.“ The challenge is not being able to deliver aircraft in the short term. The supply chain is not producing parts fast enough and we are not able to deliver all orders in real time. ”
In fact, not only is Airbus production limited, Boeing is also under pressure to deliver aircraft orders, and the related supply chain burden of aircraft parts is even heavier after the Boeing 737 Max is re-licensed for production.
During the COVID-19 pandemic, many suppliers were forced to cut production and stop production due to the epidemic, resulting in undigestible demand after the recovery of the epidemic.
# Chip Shortage # Semiconductor Out of Stock # Supply Chain # Aircraft # Large Out of Stock

Leasing companies are playing a growing role, controlling over 50% of the global fleet and focusing on fuel-efficient models to meet demand in high-growth regions like Asia-Pacific.

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Content: Global aircraft leasing faces a new shake-up after SMBC Aviation Capital's deal to buy smaller rival Goshawk Aviation for $6.7bn (€6.34bn).

The move comes as firms report a stronger-than-expected recovery — but one increasingly overshadowed by inflation, rising borrowing costs, and the effects of the conflict in Ukraine.

SMBC's deal puts it in the number two industry spot globally, leapfrogging Dublin-based rival Avolon, behind AerCap.

The long-awaited agreed takeover of Goshawk could increase pressure on smaller rivals to follow suit as funding costs rise with higher interest rates, analysts said. Consultant Paul O'Driscoll of advisory firm Ishka told Reuters:

It means only the biggest and strongest lessors can compete at the levels you need to compete at to win.

Leasing companies now control more than half the world's fleet of aircraft and bankers say private equity firms are also hovering over at least one lessor as the industry matures.

SMBC chief executive Peter Barrett, among the crop of leaders that emerged to run the Dublin-led aircraft leasing industry from the roller-coaster empire of Irish tycoon Tony Ryan, has said he expects the industry's growth to continue.

Speaking at the Airfinance Journal conference in Dublin recently, Mr Barrett told delegates that a series of industrial and economic crises would reshuffle the deck.

He did not address longstanding rumours of a tie-up with Goshawk at the event, one of a pair of back-to-back conferences in the world's air- leasing capital.

"You need the motivation of sellers and that is going to change, also because of increased funding costs. That's going to be a factor in whether owners hold these assets or trade them," Mr Barrett told the conference.

AerCap chief executive Aengus Kelly, who shook up the industry by buying ILFC in 2013 and then GECAS last year to secure the number one spot, said size brings increased clout in crucial negotiations with repair shops and jet makers.

"You're just at a different level to the rest of the industry," Mr Kelly told the Airline Economics conference.

"No one wants to do consolidation just to get bigger for the sake of getting bigger... but I would say it's going to be something that will happen over time."

Leasing pioneer Steven Udvar-Hazy, however, warned against deals for their own sake.

"It's not going to change the total worldwide need for aircraft. It's just a redistribution of who's supplying those aircraft to the airlines," the executive chairman of US-based Air Lease Corp ALN said.

We'd rather add more airplanes than more staff and more bureaucracy. So we'll continue to look at it and if there's a golden opportunity will grab it.

After a two-year absence during the Covid pandemic, delegates at the Dublin conferences trumpeted rising demand.

The speed of the US recovery in air travel has defied expectations, flouting amber warnings from higher interest rates to inflation, high oil prices, and geopolitical risk.

For now, there are shortages of key aircraft after Boeing's two-year 737 MAX safety grounding, then Covid-19 and most recently the confiscation of hundreds of planes in Russia.

Even wide-body jet markets are seeing more tightness after years of oversupply, Mr Kelly told analysts.

Higher ticket prices

Lessors warned airlines they were ready to pass on higher funding costs, which for travellers means higher ticket prices.

"The lessors after many years have leverage over lease rates," said Marjan Riggi, senior managing director for corporate aviation at Kroll Bond Rating Agency.

Whether and how quickly inflation and lower disposable incomes could come back to bite the industry is unclear.

Reuters

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Sustainability goals are driving investments in technologies like sustainable aviation fuels (SAF) and lifecycle emissions reductions, reshaping the competitive landscape.

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Sustainable Aviation Fuel Plays Critical Role In The Quest For Net-Zero Carbon Emissions

Greg Fell, CEO, JETNET. We are the trusted source of information and intelligence for the business aviation community.

I was delighted to read that on March 25, 2022, Airbus performed the first A380 flight powered by 100% sustainable aviation fuel (SAF). As Airbus notes in its press statement, the A380 is actually the third Airbus aircraft type to fly on 100% SAF within the past year. These three flights are important data points in the larger picture of aviation progress and innovation.

Wider adoption of SAF is an essential step on our journey to reducing greenhouse gas (GHG) emissions, which are harmful to our atmosphere. Even though business aviation contributes only a tiny fraction (0.04%) of CO2 emissions, I believe we can play a key role in accelerating the transition to SAF. Business aviation contributes $150 billion to the U.S. economy and employs more than 1.2 million people, according to the National Business Aviation Association (NBAA). We have the influence to punch above our weight, and we are uniquely positioned to serve as authentic role models for positive change.

Sustainable aviation fuel sounds too good to be true, but it is true. The great advantage of SAF is that it is safe, certified and ready to use today. It’s a drop-in source of fuel with the potential to reduce the aviation sector’s carbon footprint. That’s why it's important that we, as an industry, champion the production, availability and use of SAF.

SAF is ready for takeoff.

What precisely is SAF? Here’s a handy definition from the U.S. Department of Energy.

“SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint. Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle GHG emissions dramatically compared to conventional jet fuel.”

The DOE’s Office of Energy Efficiency and Renewable Energy has estimated that the U.S. has the potential to sustainably collect one billion dry tons of biomass each year, enough to produce 50 to 60 billion gallons of low-carbon biofuels.

SAF also provides benefits that go beyond reducing CO2 emissions. According to Neste, the world's leading producer of SAF, not only does SAF reduce GHG by up to 80% compared to fossil jet fuel use, but it also produces lower particulate emissions and less contrail.

Demand is surging, but will supply catch up?

The global market for SAF is expected to grow substantially, driven by demand across every segment of the aviation industry. Bryan Sherbacow, CEO at Alder Fuels, foresees a future in which renewable fuels are the norm and not the exception. The issue isn’t lack of demand. Most of the aviation executives and operators I speak with are genuinely interested in low-carbon fuel.

What’s missing is a coordinated set of targeted economic incentives and regulatory guidelines that will jumpstart the era of broad SAF adaption. In California, operators can take advantage of state and federal incentives to lower the cost of buying SAF. Oregon and Washington reportedly have similar programs in the queue. Ideally, populous states on the East Coast will follow those examples and create their own programs to encourage wider use of SAF.

Net-zero carbon is the goal.

To be sure, SAF is not the only answer to mitigating GHG emissions. Improvements in airframe and powerplant technologies, along with more efficient modes of operation and targeted economic policies, are also part of the solution. In the near future, we’ll probably see more aircraft powered by electricity. Frankly, I look forward to taking short hops around town in an eVTOL (electric vertical takeoff and landing) vehicle. Further into the future, we may even see aircraft operating on hydrogen fuels.

But those alternatives are still largely in test mode. SAF, on the other hand, is here today and ready for use in jet aircraft. SAF is a drop-in fuel that requires no special modifications or additional infrastructure to store, deliver or use.

“The development and commercial deployment of SAF offers the most promising opportunity for reducing net GHG emissions from aviation operations,” according to Fueling the Future: Sustainable Aviation Fuel Guide, a report created by the Business Aviation Coalition for Sustainable Aviation Fuel.

In the U.S., SAF is now available mainly on the West Coast. But even if you’re operating from an airport that doesn’t provide SAF, you can still take advantage of it through a procedure called “book and claim," which allows business jet operators to buy SAF at an airport where it isn’t physically available and receive credit for the reduction in carbon emissions.

I’ll leave you with this thought: Business aviation is an admired industry, and our hearts are in the right place. Our quest to achieve net-zero carbon emissions before 2050 is both noble and practical. Let’s use our leadership skills in concert with the global aviation community to get the job done. Right now, we need more states in the U.S. to join the cause and create programs that will spur wider adoption of SAF.

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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is investing in sustainable aviation fuel production projects.

What is the main objective of the ReFuelEU Aviation initiative?

To increase demand and supply for sustainable aviation fuel