Boeing forecast says the region's carriers will need to buy 3,350 new planes
Airlines in the Middle East will need to buy 3,350 new planes over the next 20 years valued at an estimated $730 billion to meet demand, according to Boeing.
The US-based plane manufacturer presented its 2017 Current Market Outlook for the region during the Dubai Airshow.
It said twin-aisle airplanes are expected to make up nearly 50 percent of the new airplanes in the Middle East, and more than 70 percent of the value at $520 billion.
Both percentages are significantly higher than the global average, Boeing said, adding that the strong long-term demand for widebody airplanes was reinforced at the show as Emirates airline announced a commitment to purchase 40 Boeing 787-10 Dreamliners in a deal valued at $15.1 billion at current list prices.
More than half of the total deliveries in the Middle East will be single-aisle airplanes such as the 737 MAX. Operators in the region will need 1,770 single-aisle airplanes valued at $190 billion, driven by the growth of low-cost carriers, the report noted.
“Traffic growth in the Middle East is expected to grow at 5.6 percent annually during the next 20 years,” said Randy Tinseth, vice president of marketing, Boeing Commercial Airplanes.
“The fact that 85 percent 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.”
Globally, Boeing has forecast long-term demand for 41,030 new airplanes, valued at $6.1 trillion. 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.