Boeing Projects Robust Airline Growth in the Middle East
Boeing [NYSE: BA] unveiled its Middle East 2008 Current Market Outlook (CMO) yesterday on the eve of the AVEX Airshow & Aviation Exhibition held in Sharm el Sheikh.
“Air travel has grown faster in the Middle East than in any other world region, averaging more than 12 percent over the last five years,” said Drew Magill, director – Marketing, Boeing Commercial Airplanes. “Today, Boeing has 326 airplanes in service in the Middle East region with 43 airline customers and we expect continued robust air traffic growth that will exceed the world’s average.”
Approximately 60 percent of the 1,580 new airplanes being delivered to the Middle East over the next 20 years will be used to meet growing demand in the market. The remaining 4O percent of new airplanes will replace those being taken out of service. This strong replacement demand is driven by highly volatile fuel prices and the introduction of newer, more efficient and capable airplanes that help airlines be more competitive.
The Boeing 2008 CMO reflects the reality of today's challenging market environment while retaining a long-term view that portrays how air transport will be transformed over the next 20 years. The outlook indicates that continued strong fundamentals – including economic growth, world trade, aviation market liberalization and new aircraft capabilities – will drive the need for new airplanes.
The detailed study enables Boeing to better work with airlines in supporting their fleet plans in conjunction with their future economic growth. The outlook facilitates Boeing's strategic plans to drive the development of new airplanes and the improvement of existing models.