Boeing Forecasts $730 Billion Middle East Market
Boeing forecasts Middle East carriers will need 3,350 new planes over the next 20 years, valued at around USD$730 billion.
The airframer’s 2017 Current Market Outlook for the region, released to coincide with the Dubai Airshow, is for 5.6 percent annual growth over the next 20 years.
Of the total, 1,770 will be single-aisle planes valued at $190 billion, driven by the growth of low-cost carriers in the region. Twin-aisle aircraft will make up about $520 billion, 70 percent of the total value, Boeing said.
“The fact that 85 percent of the world's population lives within an eight-hour flight of the Arabian Gulf, coupled with robust business models and investment in infrastructure, allows carriers in the Middle East to channel traffic through their hubs and offer one-stop service between many cities," Boeing’s marketing VP Randy Tinseth said.
Globally, Boeing forecasts long-term demand for 41,030 new planes, valued at $6.1 trillion for traffic growth and to replace older, less efficient aircraft.
During the first two days of the Dubai Airshow, Boeing took orders or signed commitments from Emirates for 40 787-10s, worth $15.1 billion; 20 737 MAX 8s worth $2.2 billion from lessor ALAFCO; and five 787-8s from Azerbaijan Airlines, worth $1.9 billion. All are list prices, but airlines usually receive considerable discounts.