Boeing has increased its Middle East aviation industry growth forecast for the next 20 years by 40 percent as the region’s carriers continue to order planes.During a recent international aviation conference in Dubai, the aircraft manufacturer said the emergence of low-cost carriers would contribute to the growth.
John Matthews, managing director of Boeing’s financing operation for the Middle East and Africa, also stated that this region would need 1,580 commercial jets in the next two decades.
The region’s aviation industry is expected to be worth $260bn during the same period.
When addressing delegates at the conference, Matthews insisted that limited financing was not stopping airlines from buying aircraft.
“Some airlines are clearly challenged in their efforts to secure financing, but deals are getting done. The current crisis has been described as more one of confidence than of liquidity, and we agree,” he said.
“The fact that there are fewer banks working in today’s market also means less competition for those who have capital available. Interested investors can use the market dislocation to their advantage to enhance the returns of their longer-term aircraft portfolios.”
According to Matthews, the Middle East is an “important source” for aircraft financing. The company holds one of four annual airline finance and investor conferences in the region, and hosts roundtable talks between local airlines and banks.
“The rapidly developing financial markets in the Gulf are becoming important centres for aircraft finance. We and the region’s financiers realize that there are significant opportunities here to invest in the long-term and very mobile assets that airplanes represent,” Matthews said.
“Boeing continues to work with the region’s investors to make them more comfortable with airplanes as an investment class. We also believe that aircraft are ideal for Islamic financing since a fundamental criterion is that such investments be asset based.”
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