Traffic growth in Middle East has Boeing forecast $730bn market for new airplanes
"Traffic growth in the Middle East is expected to grow at 5.6% annually during the next 20 years," said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. "The fact that 85% 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."
Twin-aisle airplanes are expected to make up nearly 50% of the new airplanes in the Middle East, and more than 70% of the value at $520bn. Both percentages are significantly higher than the global average. The strong long-term demand for widebody airplanes was reinforced at the show as Emirates Airlines announced a commitment to purchase 40 Boeing 787-10 Dreamliners in a deal valued at $15.1bn at current list prices.
More than half of the total deliveries in the Middle East will be single-aisle airplanes such as the 737 MAX. Operators in the region will need 1,770 single-aisle airplanes valued at $190bn, driven by the growth of low-cost carriers.
Better support for the region's airlines and aircraft
Boeing's presence and support for the Middle East also include Global Services, the company's third and newest business unit that is expanding its service capability offerings to better support the region's airlines and aircraft.
Global Services is focused on bringing innovative solutions to market quickly within four capability focus areas: supply chain, engineering, modifications and maintenance, digital aviation and analytics, and training and professional services. Boeing's services expertise, global reach, and strong customer in-country partnerships position the company to compete and win.
"From training the next generation of pilots to creating tailored solutions and everything in between, the combined commercial and defence services market is estimated at $2.6 trillion over the next 10 years and includes strong opportunities in the Middle East," said Tinseth.
Around the world, Boeing has forecasted a long-term demand for 41,030 new airplanes, valued at $6.1 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.
