Spotlight on China: The Market Shift Driving Aviation Trends
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Asian passengers on the whole welcome self-service technologies and value cabin services like onboard Wi-Fi, wireless IFE. Speaking at APEX Asia, Fame Universal Entertainment Limited’s Ramy Choi emphasized the importance of China as a growing content market:
“Within a few years China will become the biggest cinema buying audience, surpassing the US.”
Air China has focused on a seamless travel experience which blends modernity with tradition, reflecting Chinese heritage in the design of its lounges and new 747-8i interiors.
At APEX Asia, Toby Smith, general manager, Product, Cathay Pacific Airways, explained that cultural details impact the emotional connection between passengers and the airline: “In Asia, rice is always served in a separate bowl with meals. As soon we implemented this change to our in-flight meals it resonated with passengers.”
Surveys of 8,000 passengers in both Europe and Asia influenced the design selection of the passenger experience for Finnair’s new A350XWB, according to Jarkko Konttinen, Finnair’s VP Marketing and Product Development. The airline collaborates with Finavia to establish Helsinki as a hub joining Asia with Europe and the Americas.
“With these product updates in tune with customer expectations and desires, we can support our core goal of growing Asian revenue and becoming a preferred airline in travel between Asia and Europe.”
€” Jarkko Konttinen.
Airbus has increased its overall market share in China to 49%. It claims 48% of the single-aisle market and 59% of the wide-body market.
China Aviation Supplies ordered 70 A320 aircraft this October, to be assembled at Airbus’s FALC facility in Tianjin. Airbus also signed a Letter of Intent with FALC to set up a wide-body A330 completion and delivery center in October.
Boeing has forged its own partnerships and projects demand for 6,020 new airplanes in China over the next twenty years. It has recently announced a joint initiative with the Commercial Aircraft Corporation of China (COMAC) to address the environmental impact of China’s growth. The companies will turn waste cooking oil into sustainable aviation biofuel to reduce carbon emissions by 50 to 80 percent.
IATA reports China will surpass the US as the world’s largest passenger market by 2030, with 1.3 billion passengers by 2034, 856 million more than 2014, increasing by 5.5% per year. SITA reports that 23% of Asian passengers are dissatisfied with their passenger experience, second only to the US at 28%.