Boeing Co sealed deals worth $10 billion with two airlines in China, the world's fastest growing market that is likely to buy more than 2,000 aircraft over the next five years. China expects to order 1,100 new transport aircraft and 1,000 general aviation aircraft, Wang Changshun, vice minister of the Civil Aviation Administration of China, said at an Asian aerospace conference on Tuesday.
Last-minute orders for 200 planes in December pushed EADS subsidiary Airbus past its US rival for a third year. Both aircraft makers are flying high on demand from emerging economies and low-cost airlines and a shift towards less fuel-thirsty jets. As air travel becomes more popular among China's increasingly wealthy population, Chinese airlines are keen to expand fleets to compete with players such as Singapore Airlines and Cathay Pacific.
China's purchases of aircraft will help drive overall demand in Asia-Pacific, where average annual air traffic growth is expected to grow by 6.8 percent over the next 20 years, higher than the global pace, Boeing said. Asia-Pacific is likely to make up a third of global plane demand over the next 20 years. Air China Ltd, the country's flagship carrier, said it plans to buy five Boeing 747-8 aircraft worth a list price of about $1.5 billion, a move which would be a boost for the slow-selling superjumbo jet.
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