Boeing eyes $730bn Middle Eastern aircraft sales over next 20 years
Aeronautical giant Boeing said on Monday that airlines operating in the Middle East would need as many as 3,350 new aircraft over the next two decades, valued at roughly $730bn.
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"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 at 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," he added.
Due to the region's proximity to the rest of the world strong long-term demand for twin-aisle airplanes, which had been expected to account for almost half of new airplanes delivered to the Middle East and more than 70% of the total sales value to the region at $520bn, was reinforced after Emirates announced a commitment to purchase 40 787-10 Dreamliners in a deal valued at $15.1bn.
The other half of new planes delivered to the Arabian Gulf would be single-aisle airplanes, such as the 737 MAX, with an estimated 1,770 of the vehicles being required to manage the growth of low-cost carriers.
"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.
Meanwhile, around the rest of the world, Boeing forecasted a long-term demand for 41,030 new airplanes, valued at $6.1trn.
As of 1115 GMT, shares in Boeing had dropped back 0.70% in pre-market trading to 260.85p.