11-Jul-2011 12:12 PM

Boeing boosts 20-year aircraft forecast as demand continues to grow

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11-Jul-2011 Boeing [NYSE: BA] forecasts a $130 billion market for 970 new aircraft in the Oceania market over the next 20 years, with more than half of the predicted aircraft deliveries expected to accommodate growth.

Boeing Commercial Airplanes Vice President of Marketing Randy Tinseth today shared the company's outlook for the commercial aircraft market in Australia, New Zealand the South Pacific through to 2030.

Tinseth noted the local aviation market showed signs it would continue to grow faster than the world average.

"Almost 5.6 million international visitors travelled to Australia in 2009 and Australians took more than 6.2 million international trips. With the strong Australian economy, the signs are very encouraging for those numbers to continue to grow," Tinseth said.

"Over the past decade we have seen significant change in the market with the emergence of new carriers and new business models which provide greater options for passengers.

"The number of aircraft in service in Australia has increased by 51 percent over the past decade. That's a trend we expect to continue, with 57 percent of new aircraft forecast for delivery into Oceania over the next 20 years to account for growth."

Tinseth forecasts strong demand for new efficient single-aisle aircraft. They will account for 69 percent of the 970 new aircraft required over the next 20 years. In the single-aisle category is the Next-Generation Boeing 737, the most widely flown jetliner in the world. To keep up with demand, Boeing announced recently that it will boost production of 737s to a record 42 aircraft per month by the first half of 2014.

Twin-aisle aircraft such as Boeing's 787 Dreamliner and the 777 family will account for 27 percent of deliveries, with large aircraft such as the 747-8 accounting for three percent and regional aircraft one percent.

Boeing aircraft account for 53 percent of Australia's commercial aircraft fleet and 69 percent of the current backlog.

"Australia continues to be a strong market for Boeing aircraft. The local jet fleet will continue to grow and be renewed with Boeing 737s, and 787s currently on order for Virgin Australia, Qantas and Jetstar."

The Oceania market outlook is part Boeing Current Market Outlook 2011, released in Paris last month, which forecasts a $4 trillion global market for 33,500 new passenger and freighter aircraft over the next 20 years.