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Investment Contrarians Expert Reports: China Eastern Announces Deal with Airbus; China’s Air Travel and Tourism Expected to Increase

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In a recent Investment Contrarians article, editor and financial expert George Leong reports that last Friday, China Eastern Airlines announced that it would be purchasing 60 “A320” passenger planes from Airbus, a subsidiary of European Aeronautic Defence and Space Company. (“China Eastern Airlines to Buy 60 Aircraft from Airbus,” Fox Business, November 23, 2012.) Leong states that while at first glance this may not seem like a significant deal, the buyer and the market are key. He notes that the Chinese aerospace market is significant; and given the superlative rise in air travel and tourism to and from the country, the Investment Contrarians expert expects this to increase going forward.

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Long Beach, CA;Chicago, IL;Houston, TX (PRWEB) December 01, 2012 -- In a recent Investment Contrarians articleext, editor and financial expert George Leongext reports that last Friday, China Eastern Airlines announced that it would be purchasing 60 “A320” passenger planes from Airbus, a subsidiary of European Aeronautic Defence and Space Company. (“China Eastern Airlines to Buy 60 Aircraft from Airbus,” Fox Business, November 23, 2012.) Leong states that while at first glance this may not seem like a significant deal, the buyer and the market are key. He notes that the Chinese aerospace market is significant; and given the superlative rise in air travel and tourism to and from the country, the Investment Contrarians expert expects this to increase going forward.

“The Boeing Company estimates China will require 5,000 aircrafts, valued at around $600.0 billion, over the next 20 years. The estimate may be conservative, especially if China can grow its income levels at a much higher pace,” reports Leong. (Source: “Boeing in China,” The Boeing Company, last accessed November 29, 2012.)

Leong adds that chief rival Airbus estimates the global demand will be around 28,000 new planes over the next two decades. He reports that Airbus also estimates there will be over 32,550 planes in the skies by 2031, up from the current 15,500, and the Asia-Pacific region will account for 35% of all plane purchases. He notes that Airbus expects China will be the world’s largest domestic plane market in 20 years. (Source: “Global Market Forecast 2012–2031,” Airbus, last accessed November 29, 2012.)

“The findings by Airbus are not a surprise, and will be driven by higher disposable income in the emerging global markets along with the desire for travel,” says Leong. “…strong wealth generation in the world’s largest emerging markets, including China and India, will help to drive the demand for commercial and defense planes and stocks in the equities marketext.”

Air traffic in China is growing at approximately three times the rate in North America, so the Chinese aviation market is significant, reports Leong. According to him, China recognizes this and is developing its own commercial aviation program that will see the manufacturing of airplanes with a capacity of over 150 passengers. He notes that there are no concerns at this time, as this is still decades away.

Leong concludes by noting that, for investors, aerospace is a buying opportunity in the equities market.

To see the full article, and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.comext.

Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.

After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.

Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.

Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.comext.

George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/pressext. Reported by PRWeb 2 hours ago.

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