China and India Brighten Outlook at Boeing

Boeing, which has been surpassed in the last two years by Airbus in the delivery of commercial aircraft, has said it may raise its forecast for deliveries in 2006 because of higher-than-expected demand from Chinese and Indian airlines.
China Southern Airlines, Air India and other carriers from the two nations may order more planes next year, especially smaller aircraft with single aisles, enabling Boeing to deliver "a little" more than an earlier target of between 375 and 385 planes, said Lee Monson, Boeing's senior vice president for sales in the Middle East and Africa.
"Demand is starting to increase rapidly," Monson said in an interview Sunday in Dubai, United Arab Emirates. "There is more demand than supply," he said, declining to be more specific about next year's target.
Growth among the airlines of Asia, where 10 low-fare carriers began flying last year, is leading global demand for new planes. Chinese airlines may need 1,790 new planes worth $230 billion until 2023, while Indian carriers may need 570 new aircraft, Airbus said on March 8. Boeing put the forecast at 2,300 planes valued at $180 billion for China while India's airlines may spend $35 billion on new orders.
"The demand for aircraft will continue to rise rapidly in China in the next few years," said Sun Liping, an analyst at Tianxiang Investment Consulting in Beijing.
Airbus delivered more planes than Boeing in 2004 for the second year, becoming the biggest manufacturer in the global market for new planes, valued at $64 billion.
Boeing is competing with Airbus for 60 planes worth $3.8 billion in list price. Airbus last week won a contract from AirAsia, Southeast Asia's biggest discount airline.
China is easing travel restrictions to let more people fly abroad for business and leisure. Air travel in China will increase by 8.2 percent every year until 2023, compared with a global average of 5.3 percent, Airbus said, without giving its 2006 deliveries forecast.
India's government plans to spend $20 billion over the next five years expanding two state-owned airlines and upgrading its airports to draw passengers from regional hubs like Singapore and Dubai.
Air India is planning to buy 68 planes from Boeing and Airbus to increase flights to the United States, Europe and Asian countries. It will also expand its network to Australia and Canada.
Indian Airlines, which flies mostly domestic routes, is buying 43 planes and aims to offer more flights to Europe.