Here’s another strong piece of evidence that established, market-leading companies in developed countriesare learning that emerging markets may hold the key to their continued global leadership. This time, it’s about the airline industry, two key players in Boeing and Airbus, and China.
The report, which comes today from Forbes.com, opens with this tantalizing lead paragraph with a Paris dateline:
Will emerging markets make or break the aerospace industry? Though the airline industry is suffering across the world, executives from Boeing and Airbus talked up the prospect of future demand from China as one bright spot at this month’s Paris Air Show.
Predictably, the news story covers itself by mentioning China’s current economic uncertainty and its own plans for commercial aircraft development, etc. But it takes off when it turns to Doug McVitie, managing director of consultancy firm Arran Aerospace. From the report:
He says that once the global economy recovers, China’s incredible aviation growth prospects will put the West to shame. “China will be a huge economic player nationally and internationally instead of just being a major export player,” he says, adding that this will directly feed through into increased transport network links and a rise in economically-active Chinese.
Bad for Boeing? Au contraire!
McVitie thinks that Boeing–currently the market leader in China–will benefit from China’s more strategic approach, which is designed to strengthen trade links with a wide array of partners and to avoid heavily favoring one plane manufacturer over another.
Boeing, by the way, according to Forbes, expects China will become the largest aviation market outside the United States by 2028, with the mainland set to require 3,700 additional aircraft in that time.