Boeing Forecasts $550 Billion Market in Middle East for New Aircraft
Thursday, 14 November 2013
The Current Market Outlook is Boeing's long-term forecast of air traffic volumes and aircraft demand.
DUBAI - Boeing (NYSE: BA) forecasts that airlines in the Middle East will require 2,610 new aircraft over the next 20 years, worth an estimated $550 billion.

While one-third of that demand – 900 aircraft– will replace today's fleets, 66 percent of the demand is expected to be driven by the rapid fleet expansion in the region.

According to the Boeing Current Market Outlook (CMO), long-range, twin-aisle aircraft– such as the Boeing 777 and 787 Dreamliner – will continue to dominate the Middle East's order books, reflecting the global network priorities and emerging alliances and partnerships of the region's carriers. 

Randy Tinseth, vice president of marketing, Boeing Commercial Airplanes, said: "International traffic growth in the Middle East continues to outpace the rest of the world.

"The Gulf region benefits from a unique geographic position that enables one-stop connectivity between Europe, Africa, Asia and Australasia. Additionally, over the last decade, we've seen a rise in low-cost carriers that have benefitted from a large youthful population, large migrant workforce and trends toward market liberalization."

"Boeing is well-positioned to address demand in the Middle East.

"Boeing airplanes provide airlines in the region with the capability to serve their expanding networks, the comfort and flexibility for a premium brand experience and the superior operating economics to create advantages not only for the airlines, but the flying public as well."

According to Boeing's forecast, twin-aisle aircraft will account for more than half of the region's new aircraft deliveries over the 20-year period – as compared to 24 percent globally.

Single-aisle aircraft, such as the Boeing 737, will make up 47 percent of regional deliveries through to 2032, while large aircraft such as the Boeing 747 will account for 10 percent of forecasted demand. Regional jets account for the remaining 1 percent of the demand.

Boeing has forecast a long-term demand for 35,280 new aircraft, valued at $4.8 trillion globally. These new aircraft will replace older, less efficient aircraft, according to the aircraft maker, to meet the growing demand for new aircraft, Boeing has increased production of it 737, 777 and 787 aircraft families.