Boeing sees Middle East aircraft demand at $730 bln over 20 years

Airlines in the Middle East will need 3,350 new airplanes over the next 20 years, valued at an estimated $730 billion, Boeing Co. said in its latest market outlook, released during the Dubai Airshow.

"Traffic growth in the Middle East is expected to grow at 5.6 percent annually during the next 20 years," Randy Tinseth, vice-president of marketing at Boeing Commercial Airplanes, said in a statement.

"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,” he added.

Boeing said it expects twin-aisle airplanes 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.

The long-term demand for widebody airplanes was highlighted at the Airshow, with Dubai-based Emirates Airline committing to buy 40 Boeing 787-10 Dreamliners in a deal valued at $15.1 billion at current list prices, the statement said.

Meanwhile, more than half of the total demand will be for single-aisle airplanes, with operators likely to need 1,770 single-aisle airplanes valued at $190 billion, driven by the growth of low-cost carriers.

Globally, Boeing expects 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,” the report said.