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China suspends new plane orders
Published: Dec. 10, 2008 at 1:13 AM
BEIJING, Dec. 10 (UPI) -- China, feeling the pinch of declining air traffic, has told its airlines to suspend jetliner orders from foreign makers, the government said.
The suspension is needed to cut operating costs and maintain demand-supply balance, the China Daily reported.
The newspaper said the current global financial turmoil has resulted in a drop in both domestic and international passenger traffic, thereby reducing the need for new aircraft.
The China Aviation Industry Corp. had earlier estimated the country, based on its air traffic growth, would need 3,110 new planes in the next two decades.
However, under the new projections, the Civil Aviation Administration of China says it will "encourage" airline companies to cancel or defer taking delivery of new planes next year. The companies would be asked to more profitably use of their existing fleet.
The agency also will not approve new airline companies before 2010, the report said.
Li Xiaojin, an economic expert on the aviation industry, told China Daily an airline can save up to $130,950 a month by not buying a new plane.
Airbus China was quoted as saying 440 planes, or about a tenth of its global orders, would be ready for delivery to Chinese airlines in the next couple of years.
U.S. maker Boeing did not say how many planes were on order from China, the report said.
© 2008 United Press International, Inc. All Rights Reserved.
China suspends new plane orders
Published: Dec. 10, 2008 at 1:13 AM
BEIJING, Dec. 10 (UPI) -- China, feeling the pinch of declining air traffic, has told its airlines to suspend jetliner orders from foreign makers, the government said.
The suspension is needed to cut operating costs and maintain demand-supply balance, the China Daily reported.
The newspaper said the current global financial turmoil has resulted in a drop in both domestic and international passenger traffic, thereby reducing the need for new aircraft.
The China Aviation Industry Corp. had earlier estimated the country, based on its air traffic growth, would need 3,110 new planes in the next two decades.
However, under the new projections, the Civil Aviation Administration of China says it will "encourage" airline companies to cancel or defer taking delivery of new planes next year. The companies would be asked to more profitably use of their existing fleet.
The agency also will not approve new airline companies before 2010, the report said.
Li Xiaojin, an economic expert on the aviation industry, told China Daily an airline can save up to $130,950 a month by not buying a new plane.
Airbus China was quoted as saying 440 planes, or about a tenth of its global orders, would be ready for delivery to Chinese airlines in the next couple of years.
U.S. maker Boeing did not say how many planes were on order from China, the report said.
© 2008 United Press International, Inc. All Rights Reserved.
