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Boeing Sees $550 Billion Market for New Airplanes in Middle East //

November 15, 2013

Boeing is forecasting that airlines in the Middle East will require 2,610 new airplanes over the next 20 years worth an estimated $550 billion.
For a number of years now some of the world’s leading airlines have been located in the Middle East – namely Emirates, Etihad and Qatar – as well as some of the newest major world hubs. So perhaps it comes as no surprise that

While one-third of that demand (900 airplanes) will replace today’s fleets, 66 percent of the demand is expected to be driven by the rapid fleet expansion in the region. According to the Boeing Current Market Outlook (CMO), long-range, twin-aisle airplanes — such as the Boeing 777 and 787 Dreamliner — will continue to dominate the Middle East’s aircraft order books, reflecting the global network priorities and emerging alliances and partnerships of the region’s carriers.

“International traffic growth in the Middle East continues to outpace the rest of the world,” said Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes. “The Gulf region benefits from a unique geographic position that enables one-stop connectivity between Europe, Africa, Asia and Australasia. Additionally, over the last decade, we’ve seen a rise in low-cost carriers that have benefitted from a large youthful population, large migrant workforce and trends toward market liberalization.”

According to the Boeing forecast, twin-aisle aircraft will account for more than half of the region’s new airplane deliveries over the 20-year period, compared to 24 percent globally. Single-aisle airplanes, such as the Boeing 737, will make up 47 percent of regional deliveries through to 2032, while large airplanes such as the Boeing 747 will account for 10 percent of forecasted demand. Regional jets account for the remaining 1 percent of the demand.

Globally, Boeing has forecast a long-term demand for 35,280 new airplanes, valued at $4.8 trillion. These new airplanes will replace older, less efficient airplanes, benefiting airlines and passengers and stimulating growth in emerging markets and innovation in airline business models. To meet the growing demand for new airplanes, Boeing has increased production of its popular 737, 777 and 787 airplane families. For more information, click on Boeing Current Market Outlook.

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