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Boeing eyes opportunities in China's surging services market

Xinhua | Updated: 2017-11-04 13:11

BEIJING — Boeing is expanding its global presence with a newly-established services group, and gearing up to explore the Chinese market with "strategic importance", according to a senior group executive.

Amid a dynamic global aviation market, the US aerospace giant sees "tremendous opportunities" from the long-chain service sector, especially in Asia.

"With China as a sustainable power, Asia is a region that we look to," Mike Fleming, vice-president of commercial services of Boeing Global Services Group.

In July, Boeing launched Boeing Global Services as its third major business after Commercial Airplanes and Defense, Space and Security.

Headquartered in Dallas, the new group integrates the services capabilities of the government, space and commercial sectors in a single, customer-focused business.

The new unit will offer innovative services in four key areas: supply chain; engineering, modifications and maintenance; digital aviation and analytics; and training and professional services.

"Boeing values highly the Asian market with China as a surging power. We have done a lot and we will expand our presence in China," said Fleming.

The service volume in Asia is forecast to reach $3.2 trillion by 2036 period, with annual average growth of 5.3 percent, compared with the global figure of 4 percent.

According to Boeing's latest market outlook, China is expected to need 7,240 new aircraft over the next 20 years, valued at nearly $1.1 trillion.

In May, Boeing started construction of the first overseas production system of its most popular 737 aircraft in the East China port city of Zhoushan, with a completion center and the delivery center.

A year earlier, it launched a 737-800 Boeing converted freighter program in Shanghai, looking to serve the growing e-commerce and express delivery sectors.

And in July this year, Boeing Shanghai Aviation Services announced a maintenance agreement with leading Chinese air express carrier SF Airlines for its Boeing Classic 737 and 767-300 freighters.

With the largest all-cargo fleet in China, SF Airlines has 39 aircraft comprising Boeing 767s, 757s and 737s.

"Aerospace service represents one of Boeing biggest growth opportunities for the future. No doubt, China is of strategic importance to our presence in the market," Fleming said.

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