Airlines are on the largest jet-buying spree in the history of aviation, ordering more than 8,200 new planes with manufacturers Airbus SAS and the Boeing Co. in the past five years. There are now 24 planes rolling off assembly lines weekly, up from 11 a decade ago. And that rate is expected to keep climbing.
New planes allow airlines to save on fuel, their biggest cost, while offering passengers more amenities — some for a fee. Passengers can plug in to work, be entertained by a seat-back TV and fly some international routes non-stop for the first time. The commercial divisions of Boeing and Airbus will get a steady stream of cash for years, a key reason investors have doubled the companies’ stock price in the past year.
Most of the planes are going to new or quickly growing airlines that serve an expanding middle class in India and the rest of Asia. The International Air Transport Association expects the number of passengers worldwide to grow 31 percent, to 3.9 billion, in the next four years.
U.S. airlines are buying as well. After suffering through the Sept. 11 terrorist attacks, bankruptcies and recessions, they’re now financially strong enough to buy new jets. Domestic carriers spent $11.6 billion last year on capital improvements — including planes — up from $5.2 billion in 2010.
06/02/14 Scott Mayerowitz/Associated Press/az central.com
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New planes allow airlines to save on fuel, their biggest cost, while offering passengers more amenities — some for a fee. Passengers can plug in to work, be entertained by a seat-back TV and fly some international routes non-stop for the first time. The commercial divisions of Boeing and Airbus will get a steady stream of cash for years, a key reason investors have doubled the companies’ stock price in the past year.
Most of the planes are going to new or quickly growing airlines that serve an expanding middle class in India and the rest of Asia. The International Air Transport Association expects the number of passengers worldwide to grow 31 percent, to 3.9 billion, in the next four years.
U.S. airlines are buying as well. After suffering through the Sept. 11 terrorist attacks, bankruptcies and recessions, they’re now financially strong enough to buy new jets. Domestic carriers spent $11.6 billion last year on capital improvements — including planes — up from $5.2 billion in 2010.
06/02/14 Scott Mayerowitz/Associated Press/az central.com
