Comments on: China to soon become the second largest airline industry http://news.techwhack.com/1561-china-to-soon-become-the-second-largest-airline-industry News from the Tech and IT World Wed, 25 Nov 2009 13:03:06 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Tin-Yun Ho http://news.techwhack.com/1561-china-to-soon-become-the-second-largest-airline-industry#comment-2644 Tin-Yun Ho Mon, 04 Jul 2005 18:43:14 +0000 http://news.techwhack.com/1561/china-to-soon-become-the-second-largest-airline-industry/#comment-2644 It is very much true that Chinese and Indian markets will see the largest potential for growth in air traffic (passenger miles delivered). However, whether this will translate into actual demand for aircraft and growth in the airline industry remains to be seen. Both countries face serious bottlenecks. In particular, the Indian airport infrastructure is woefully inadequate for supporting this expected growth in air traffic. And even worse, as you may have noticed, at the Paris Air Show, not a single Chinese Airline bought an aircraft from Boeing or Airbus because none received permission from the Chinese government. This reflects the fact that the Chinese government is still keeping airline industries under substantial regulatory burdens that might prevent them from growing as quickly as necessary to meet the growth in air traffic demand. Thus, although we know the Chinese and Indian airline industries and markets for aircraft will grow, there are a lot of factors that may prevent that growth from reaching the levels predicted in your optimistic forcasts. It is very much true that Chinese and Indian markets will see the largest potential for growth in air traffic (passenger miles delivered). However, whether this will translate into actual demand for aircraft and growth in the airline industry remains to be seen. Both countries face serious bottlenecks. In particular, the Indian airport infrastructure is woefully inadequate for supporting this expected growth in air traffic. And even worse, as you may have noticed, at the Paris Air Show, not a single Chinese Airline bought an aircraft from Boeing or Airbus because none received permission from the Chinese government.

This reflects the fact that the Chinese government is still keeping airline industries under substantial regulatory burdens that might prevent them from growing as quickly as necessary to meet the growth in air traffic demand.

Thus, although we know the Chinese and Indian airline industries and markets for aircraft will grow, there are a lot of factors that may prevent that growth from reaching the levels predicted in your optimistic forcasts.

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