The Boeing Company (NYSE:BA) expects that it will manufacture 1,360 aircrafts, value $280 billion for North-east Asia aircraft market in next twenty years, in contrast to last estimate of 1,270 planes.
The aircraft manufacture’s marketing vice president for commercial planes, Randy Tinseth, announced the prediction in a briefing in Tokyo, Japan.
During previous 20 years the aircraft manufacturing company market projection for the area that consist of Taiwan, the Korean peninsula and Japan. The firm also estimates that the sales of commercial jets would be around $220 billion. The firm also adds it has estimated that the substitute of existing jets will make up 55% of orders.
The company marketing vice president trip to the largest market of Northeast Asian region Japan , is a result of a decision taken by Japan Airlines Co (9201.T) to purchase its first ever aircrafts from European manufacturer of aircrafts’. The Japanese airline has demanded 31 A350s Airbuses, whose delivery will start in 2019.
The US aircraft manufacturer after seeing this heavy demands from Japan Airlines Company, has offered its officially un-launch 777X aircraft to the airline, which is an updated version of the 777, but JAL rejected a bid by Boeing, That has increase threat for the U.S. aircraft manufacture dominance in market, where every 4 out of 5 jetliners are manufacture by Boeing.
While JAL’s competitor ANA Holdings (9202.T), which is also looking forward to replacing its 30 aging 777 with latest long-haul jets, has gain attention from many aircraft manufacture that are currently battling to win an order from it.
In the latest quarter result The Boeing Company (NYSE:BA) declares that its net income increase 12% as many airlines are demanding commercial planes from it, as well as it has also increase its profit guidance for the complete year.
In current quarter profits increase 40% from commercial planes, counterbalancing a 19% decrease in profit in its defense unit due to a sharp decrease in military planes. The company earned $1.51 on each share or $1.16 billion, in contrast to $1.35 on each share, or $1 billion in same period last year. While its revenue increase 11% to $22.13 billion, which is above analyst predictions. Shares of the Boeing Company were up 3.65% to $126.95 in pre-market. In last session BA closed at $122.48.