Boeing Forecasts Demand for 3,310 New Airplanes Valued at $770 Billion From Middle East
Twin-aisle aircraft account for nearly half of Middle East’s new airplane deliveries forecasted over next 20 years
SEATTLE, October 21, 2016 - Boeing’s [NYSE: BA] annual Current Market Outlook (CMO) projects that customers in the Middle East will need 3,310 new airplanes, valued at $770 billion, over the next 20 years to meet regional airlines’ requirements for fleet renewal and growth.
Approximately 70 percent of the demand is driven by the rapid fleet expansion in the region. This growth is fueled by the region’s economic growth and strategic location that provides one-stop connections to 80 percent of the world’s population. Airlines are also investing in newer, more capable, fuel-efficient airplanes in order to compete in the very competitive Middle East aviation market.
“We expect to see passenger traffic grow 5.9 percent annually in the Middle East over the next 20 years,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “Despite challenging economic conditions globally, the Middle East has laid the groundwork for the aviation sector to continue to see long-term growth.”
Boeing’s 20-year forecast also predicts that twin-aisle aircraft will account for a little under half of the Middle East’s new airplane deliveries over the 20-year period, compared to 23 percent globally.
The twin-aisle market in the Middle East will be especially strong and Boeing’s products have gained the confidence of some the region’s leading airlines. The 777’s unique combination of superior range, outstanding fuel efficiency and passenger-preferred comfort has created long-range success for carriers around the world. Kuwait Airways is scheduled to take delivery of its first of 10 777-300ERs later this year.
Additionally, Boeing’s new 777X will be the largest and most-efficient twin-engine jet in the world, with 12 percent lower fuel consumption and 10 percent lower operating costs than the competition. Emirates, Qatar Airways and Etihad Airways were the Middle East launch customers for the 777X, which was launched at the 2013 Dubai Airshow.
Globally, Boeing projects that 39,620 new airplanes over the next 20 years, an increase of 4.1 percent over last year’s forecast, estimating the total value of those new airplanes at $5.9 trillion.
Boeing’s Current Market Outlook is the longest running jet forecast and regarded as the most comprehensive analysis of the aviation industry. The full report can be found at www.boeing.com/cmo.
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