Boeing Forecasts China Will Need 5,260 New Airplanes by 2031

Press release:

- Soaring demand for twin-aisle airplanes as Chinese airlines expand globally

BEIJING, Sept. 5, 2012 /PRNewswire/ -- Boeing (NYSE: BA), China's leading provider of passenger airplanes, projects that China will need 5,260 new commercial airplanes valued at $670 billion over the next 20 years. China is forecast to be the second largest market for new commercial airplanes.

"It's impressive that over 75 percent of the demand in China will be for growth instead of replacement," said Randy Tinseth, Boeing Commercial Airplanes vice president of Marketing. "Sustained strong economic growth, growing trade activities and increasing personal wealth are some of the driving forces. Travelers also care about increased connectivity, efficiency and lower prices."

Boeing predicts that small and intermediate twin-aisles, such as the Boeing 787 Dreamliner and 777, will account for a significant part of future deliveries. These airplanes are expected to be the highest value segment, making up 48 percent of the market in value with some 1,190 new deliveries anticipated.

The expansion of the Chinese market has also unleashed pent-up demand for broader international travel.

"We expect Chinese carriers to experience rapid international expansion over the next 20 years, with an annual increase rate of 8.9 percent on average. That's not only because the market demand is growing, but because Chinese carriers now have the capability and resources to compete in the tough long-haul international market," Tinseth added.

Tourism in China will also help fuel a strong demand for single-aisle aircraft, with total deliveries of single-aisle airplanes reaching 3,650 through 2031. Tinseth said the new 737 MAX family will allow Boeing to continue to deliver the most fuel-efficient, capable airplane with the lowest operating costs in the single-aisle market.

Worldwide, Boeing projects investments of $4.5 trillion for 34,000 new commercial airplanes to be delivered during the next 20 years. The complete forecast is available atwww.boeing.com/commercial/cmo/index.html.

Boeing has been celebrating its 40th anniversary of providing commercial aircraft and services to China's aviation industry this year. With partners across generations, Boeing has built long-standing relationships with the Chinese government, airlines, the aviation industry and aerospace suppliers.

Today, Boeing jets are the mainstay of China's air travel and cargo system. More than 50 percent of all the commercial jetliners operating in China are Boeing airplanes. Some 6,000 Boeing airplanes fly throughout the world with integrated China-built parts and assemblies. China has a component role on every current Boeing commercial airplane model – the 737, 747, 767, 777, as well as the world's newest and most innovative airplane, the Boeing 787 Dreamliner.

Airline Economics Names GE Capital Aviation Services Lessor of the Year

26 March 2012

Airline Economics Names GE Capital Aviation Services Lessor of the Year

LONDON, March 26, 2012 – GE Capital Aviation Services (GECAS), the commercial aircraft financing and leasing unit of GE, accepted the “2012 Lessor of the Year” award from Airline Economics magazine.

The publication’s Airline 100 award is based on votes from more than 6,000 aviation executives around the world.

“GE Capital Aviation Services managed to secure not only the largest percentage of the total vote but also a winning vote in three out of four geographical regions,” said Philip Tozer-Pennington, managing editor,Airline Economics. “This shows beyond doubt that in 2011, in the eyes of the aviation sector, GECAS has out-performed all other lessors in terms of quality of service.”

About GE Capital Aviation Services (GECAS)GECAS, the U.S. and Irish commercial aircraft financing and leasing business of GE, has a fleet of over 1,725 owned and managed aircraft with over 235 airlines in over 75 countries. GECAS offers a wide range of aircraft types and financing options, including operating leases and secured debt financing, and also provides productivity solutions including spare engine leasing, spare parts financing and management. GECAS, a unit of GE Capital, has offices in 24 cities around the world. (www.GECAS.com) 

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com

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Airline Woes

Excerpt from an article in

The New York Times

Tuesday, March 06, 2012

Manifestos for Travelers, Not Just Airlines - On the Road

By JOE SHARKEY

AS they say in the Navy when seas get rough, stand by for heavy rolls. If you think that airplanes are crowded now, if you worry about service to smaller and midsize cities, if you’re alarmed by rising airfares, just wait.

“I don’t think people realize what’s coming,” said Michael Boyd, the president of the airline forecaster Boyd Group International. “Airlines are going to do O.K., but doing O.K. means they’re going to be dropping a lot of places they now fly. Air travel is going to get accessed by fewer and fewer people,” as airlines continue to reduce service to many markets to cut costs, he said.

“This is a mixed metaphor, but it’s going to be a sea change in air travel patterns,” he said.

For over a year, most airlines have been reducing capacity in the domestic air travel system while concentrating on the major routes that provide the most revenue and feed their international routes. Still, they are clearly worried about the future, with fuel now accounting for about 35 percent of costs, and travelers starting to push back against steady increases in fares. Domestic airlines collectively earned $390 million last year, and $2.7 billion in 2010, after a decade in which they collectively lost $53 billion, according to Airlines for America, the industry trade group.

Last week, the trade group issued a detailed “Case for a U.S. National Airline Policy,” calling on the federal government to reduce aviation taxes and regulations, assist the industry in facing more aggressive global competition, curb fuel prices and volatility and spend more money on improving the national air traffic control system and other federal services.

The trade group, in its manifesto, said the airlines wanted “a cohesive policy supporting the integral role of the U.S. airline industry in our economy,” and argued that without help, “domestic service levels will suffer,” especially at smaller cities and rural communities.

Expansion of Passenger Pre-screening

From the Dept. of Homeland Security:

TSA Pre✓™ Pilot to Expand to Busiest US Airports

Release Date: February 8, 2012
For Immediate Release
Office of the Press Secretary
Contact: 202-282-8010

WASHINGTON – Department of Homeland Security (DHS) Secretary Janet Napolitano and Transportation Security Administration (TSA) Administrator John S. Pistole today announced the expansion of TSA Pre√™, a passenger pre-screening initiative, to additional airports across the country following the program’s success at seven pilot locations.

With more than 336,000 passengers screened to date through TSA Preê lanes, this screening concept enhances security by enabling TSA to focus its efforts on passengers the agency knows less about while providing expedited screening for travelers who volunteer information about themselves prior to flying.

“TSA Pre√™ moves us closer to our goal of delivering the most effective and efficient screening by recognizing that most passengers do not pose a threat to security,” said TSA Administrator John S. Pistole. “We are pleased to expand this important effort, in collaboration with our airline and airport partners, as we move away from a one-size-fits-all approach to a more intelligence-driven, risk-based transportation security system.”

TSA Preê is currently operating with American Airlines at airports in Dallas, Miami, Las Vegas, Minneapolis and Los Angeles, and with Delta Air Lines at airports in Atlanta, Detroit, Las Vegas, and Minneapolis. US Airways, United Airlines and Alaska Airlines are all opting in new passengers and will begin operations later this year.

As part of the initiative’s expansion, TSA Pre√™ will be implemented at the following airport locations throughout 2012:

• Baltimore/Washington International Thurgood Marshall Airport (BWI)
• Boston Logan International Airport (BOS)
• Charlotte Douglas International Airport (CLT)
• Cincinnati/Northern Kentucky International Airport (CVG)
• Denver International Airport (DEN)
• Fort Lauderdale-Hollywood International Airport (FLL)
• George Bush Intercontinental Airport (IAH)
• Honolulu International Airport (HNL)
• Indianapolis International Airport (IND)
• John F. Kennedy International Airport (JFK)
• LaGuardia Airport (LGA)
• Lambert-St. Louis International Airport (STL)
• Louis Armstrong New Orleans International Airport (MSY)
• Luis Muñoz Marín International Airport (SJU)
• Newark Liberty International Airport (EWR)
• O’Hare International Airport (ORD)
• Orlando International Airport (MCO)
• Philadelphia International Airport (PHL)
• Phoenix Sky Harbor International Airport (PHX)
• Pittsburgh International Airport (PIT)
• Portland International Airport (PDX)
• Ronald Reagan Washington National Airport (DCA)
• Salt Lake City International Airport (SLC)
• San Francisco International Airport (SFO)
• Seattle-Tacoma International Airport (SEA)
• Tampa International Airport (TPA)
• Ted Stevens Anchorage International Airport (ANC)
• Washington Dulles International Airport (IAD)

TSA will continue expanding TSA Preê to additional airlines and airports once they are operationally ready.

Eligible participants include certain frequent flyers from participating airlines as well as members of Customs and Border Protection’s (CBP) Trusted Traveler programs (Global Entry, SENTRI, and NEXUS) who are U.S. citizens and fly on a participating airline. Individuals interested in participating in the pilot can apply via Global Entry at http://www.globalentry.gov/.

If TSA determines a passenger is eligible for expedited screening following the TSA Pre√™ vetting process, information will be embedded in the barcode of the passenger’s boarding pass. TSA will read the barcode at the security checkpoint and then may refer the passenger to a TSA Pre√™ lane, where they will undergo expedited screening, which could include no longer removing the following items:

• Shoes
• 3-1-1 compliant bag from carry-on
• Laptop from bag
• Light outerwear/jacket
• Belt

TSA will always incorporate random and unpredictable security measures throughout the airport and no individual will be guaranteed expedited screening. As part of the agency’s risk-based security initiative, TSA is currently testing several other screening initiatives, including initiatives designed to provide positive ID verification for airline pilots and the use of expanded behavior detection techniques.

For more information about TSA’s risk-based security initiatives, visit www.tsa.gov.

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