Boeing Forecasts US$4.5 Trillion Market for 34,000 New Airplanes

KUALA LUMPUR, July 4 (Bernama) -- Boeing is projecting a US$4.5 trillion market for 34,000 new airplanes over the next 20 years as the current world fleet doubles in size. According to the Boeing 2012 Current Market Outlook released Tuesday, the aircraft manufacturer said its annual forecast reflected the strength of the commercial aviation market. Boeing Commercial Airplanes Vice-President of Marketing, Randy Tinseth, said: "The world's aviation market is broader, deeper and more diverse than we've ever seen it. "It has proven to be resilient even during some very challenging years and is driving production rate increases across the board," he said in a statement. The company also projected airline traffic to grow at five per cent a year over the next two decades, with cargo traffic expected to grow at 5.2 per cent year. "The single-aisle market, served by Boeing's Next-Generation 737 and the future 737 MAX, will continue its robust growth. "Widebodies, such as Boeing's 747-8, 777 and 787 Dreamliner, will account for almost US$2.5 trillion dollars worth of new airplane deliveries, with 40 per cent of the demand for these long-range airplanes coming from Asian airlines," it said. Robust growth in China, India and other emerging markets is a major factor in the increased deliveries over the next 20 years. Low-cost carriers, with their ability to stimulate traffic with low fares, are growing faster than the market as a whole. There is also a strong demand to replace older and less fuel-efficient airplanes. Replacement accounts for 41 per cent of new deliveries in the forecast. As for the freighter fleet, Boeing has revised downwards its projection for freighters over the next 20 years as the cargo market remains sluggish. Still, the world freighter fleet is projected to nearly double from 1,740 aircraft today to 3,200 at the end of the forecast period, it said. -- BERNAMA