Boeing: China’s LCC market share to reach 30% by 2033
The LCC market will make up of 35% of the global single-aisle air transportation capacity by 2033.
The low-cost carrier (LCC) market will make up of 35% of the global single-aisle air transportation capacity by 2033, and the Chinese LCC market’s share will reach the same ratio, according to a Boeing Commercial Airplanes executive.
“The LCC segment takes up around 28% of the current global airline market and Chinese LCCs’market share has grown in two years from 5% to around 9% as of 2014. This is a remarkably fast growth and we estimate that China’s LCC market share will exceed 30% and catch up with the global average in a very short time,” said Boeing’s marketing director of Northeast Asia regional market Ron Kent.
“The development of the global airline industry has gone through a similar pattern, as we have seen in Europe and US, when rapid development for LCCs will follow as the traditional carrier markets mature,” Mr. Kent said.
Boeing said that China’s airline market has doubled in size with 10% growth in transport volume over the last 10 years. LCCs mainly focus on flights connecting middle or small sized cities and the industry’s new strategy is to provide direct flights connecting China’s second and third-tier cities.
Boeing and Airbus are both targeting LCCs by marketing aircraft suited to the segment. Boeing is pitching its single-aisle 737MAX series, with the 737MAX200 specifically designed for LCCs.
Most 737MAX series orders are from newly formed traditional carriers and LCCs. Boeing expects delivery of 2,713 aircraft ordered by 57 companies to begin in 2017. Chinese airlines have placed orders for 260 planes, of which only Okay Airways has confirmed its order for 10 aircraft while the other companies - including Air China, Kunming Airlines, Hainan Airlines, China Eastern Airlines and 9Air - have yet to finalize order confirmation. (Translation by David)