Chillin' out till it needs to be funded
The Singapore Air show event starting today isflagged as an important one for India and China. For starters, Bombardier has signed up with COMAC, China ordering Cseries. Bombardier has commitments for 317 CSeries Bombardiers as per the company (bloomberg.com/tv live). The CSeries is a smaller 110-130 seater aircraft bigger than ATR and the potential 3,500 aircraft market could be important for some short haul routes or ones where small capacity additions might be workable.
China is looking at its manufacturing capabilities in aircraft manufacturing with COMAC established in 2008. India is looking at expanding its aviation industry to connect more cities and with bigger aircraft fleets, but budget troubles and the ruling oil prices have crossed most of its airlines companies into perenniel loss making companies in 2011.
The Bombardier Aircraft likely price in the range below $80 mln in the outright purchase option and Air Asia and some regional low fare carriers like Air Asia also seem good candidates
China has refused to pay the new Carbon Tax in the EU touted as the Emission trading Scheme. Other non EU airlines have also protested against the discriminatory levy. Asia is expected to provide a majority of the 3 bln more passengers in the air by 2030, doubling from today’s levels
It remains a key market for Airbus and Boeing for more than 100 aircraft each through the central purchasing structures. Domestic air traffic has quadrupled in the last decade, with even Hongkong Airlines putting in for 10 380s for $4 bln last year. The A380 is expected to grow to 32% of all aircraft by 2032 according to a Singapore trade minister (ET)