China Urged To Boost Domestic Demand

Adam Pilarski, SVP Avitas, has expressed concern over China's future growth rates. According to the analyst, China's private domestic consumption is at roughly half the level of the US and Japan, and he highlighted China's need to increase domestic demand and lower its reliance on exports, particularly because demand from its main markets - Europe and the US - is low. Speaking together with Pilarski and other industry peers at the International Society of Transport Aircraft Trading (ISTAT), Peter Morris, chief economist at Ascend, said growth of the top five airlines from Western European countries was down 14 per cent during the recession. He added that only six of the 47 airlines showed an increase in domestic flights and 29 on international flights. However, Brian Pearce, chief economist and director at IATA, said that while the overall results from Europe were negative, its decline was largely due to a poor use of capital, failing that has since been addressed. Also speaking at the industry event, Airbus' John Leahy, COO customers, was - unsurprisingly - more optimistic than the economists. He argued that air travel has doubled over the last 15 years and that two thirds of the population of emerging markets will be flying by 2032.

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