Global airlines need 35,280 aircraft worth $4.8tr -Boeing
DUBAI – To meet the growing demand for new airplanes, Boeing has increased production of its popular 737, 777 and 787 airplane families just as it has forecast a long-term demand for 35,280 new airplanes, valued at $4.8 trillion, globally.
According to the aircraft giant manufacturer, 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.
Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems.
The bullish new forecast shows a 3.8 percent increase from Boeing’s prior rolling 20-year outlook, anticipating a surge in Asia-Pacific travel that will keep production rates rising. Boeing said passenger and cargo traffic, both indicators of economic activity, are expected to grow 5 percent annually.
Airlines will need 24,670 single-aisle jets worth $2.29 trillion at list prices, according to the latest forecast, up from 23,240 forecast last year. The forecast for twin-aisle planes such as the Boeing 777 and 787 and the Airbus A330 and A350 fell 1.5 percent to 7,830, compared with last year’s forecast, Boeing said. For Boeing 747 and Airbus A380 jumbo jets, the forecast fell 3.8 percent to 760 planes, from 790 aircraft forecast last year.
However, the forecast for regional jets made by Bombardier and Embraer was unchanged at 2,020 aircraft as global passenger traffic is expected to rise about 5 percent, matching the long-term trend, and slightly faster in 2014, said Randy Tinseth, Vice President of Marketing, Boeing commercial planes.
The global fleet of commercial aircraft hit 20,310 last year, its first time above 20,000, and is expected to more than double to 41,000 planes by 2032, Boeing added.
Of that fleet in 2032, about 41 percent will be replacement aircraft for planes coming out of service, 59 percent will reflect growth in travel and about 6,000 will be aircraft still in service.
Boeing dismissed concerns that aircraft makers are churning out too many planes, creating a bubble of oversupply.
“Every indicator that we see in the market says that the demand is real and there is a need to increase production, travel within the Asia-Pacific region, including China, will more than triple, far outstripping gains in other regions”, Tinseth added.
By the end of the two decades, that region’s travel will rival travel within Europe, North America and China combined.
– BUSINESS DAY