Business | Aviation
Mideast needs 1,580 planes in 20 years to meet growing demand, Boeing says
Airlines in the Middle East will require $260 billion (Dh954.2 billion) to acquire 1,580 planes during the next 20 years, according to a market forecast update by Boeing.
- By Saifur Rahman, Business Editor
- Published: 23:20 November 7, 2008
Dubai: Airlines in the Middle East will require $260 billion (Dh954.2 billion) to acquire 1,580 planes during the next 20 years, according to a market forecast update by Boeing.
Of this, $160 billion or 62 per cent will be spent on wide-bodied aircraft.
"About 9 per cent or 312 of our backlog of 3,700 aircraft are from the Middle East, which is much higher than that of 2 per cent of the 1,400 aircraft in 2001," Drew Magill, Director - Marketing, Boeing Commercial Airplanes, told Gulf News in a phone-in interview on Thursday.
Approximately 60 per cent of the 1,580 new airplanes being delivered to the Middle East over the next 20 years will be used to meet growing demand in the market.
The remaining 40 per cent of new airplanes will replace those being taken out of service.
This strong replacement demand is driven by highly volatile fuel prices and the introduction of newer, more efficient and capable airplanes that help airlines be more competitive.
"Air travel has grown faster in the Middle East than in any other world region, averaging more than 12 per cent over the last five years," Magill said, as the aircraft manufacturer released its updated current market outlook (CMO) for the Middle East.
Outlook
"Today, Boeing has 326 airplanes in service in the Middle East region with 43 airline customers and we expect continued robust air traffic growth that will exceed the world's average."
The Boeing 2008 CMO reflects the reality of today's challenging market environment while retaining a long-term view that portrays how air transport will be transformed over the next 20 years.
The outlook indicates that continued strong fundamentals - including economic growth, world trade, aviation market liberalisation and new aircraft capabilities - will drive the need for new airplanes.
In terms of volume, 680 of the 1,580 aircraft will be wide-bodied, 690 or 44 per cent will be single-aisle.
The Gulf is currently leading the aircraft orders in the world. Dubai's Emirates has more than 250, Abu Dhabi's Etihad has more than 205 and Qatar Airways has over a hundred planes on order.
Worldwide, Boeing projects investments of $3.2 trillion for 29,400 new commercial airplanes to be delivered during the next 20 years.
He said aerospace liberalisation could spur growth of aviation sector in the region, long dominated by the governments.
"We see more opportunities driven by the low-cost airlines in the region. A number of the Middle East's growing budget airlines see the benefits of our B737 fleet," he said.
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