Boeing sees $730bn market in Middle East
Boeing predicts that airlines in the Middle East will need 3,350 new aircraft over next 20 years, with twin-aisle models accounting for almost half of the total.
Boeing forecasts that airlines in the Middle East will need 3,350 new airplanes over the next 20 years, valued at an estimated $730bn. The company presented its 2017 Current Market Outlook (CMO) for the region during the Dubai Airshow.
Boeing predicts that traffic growth in the region will average 5.6% annually over the next 20 years, helped by the fact that 85% of the world's population lives within an eight-hour flight of the Arabian Gulf.
Twin-aisle aircraft are expected to make up nearly 50% of the 3,350 new aircraft in the Middle East, and more than 70% of the value, at $520bn. Both percentages are significantly higher than the global average. By comparison,widebodies are expected to account for only 19% of new aircraft in Europe over the same period.
The strong long-term demand for widebody airplanes was not really reflected at the show, which was dominated by massive orders for single-aisle A320neos and 737 MAXs. Emirates announced a commitment for 40 Boeing 787-10s but failed to finalise an expected order for additional A380s.
According to the Boeing forecast, more than half of the total deliveries in the Middle East will be single-aisle models. Operators in the region are predicted to buy 1,770 single-aisle aircraft valued at $190bn, driven by the growth of low-cost carriers.