Boeing sees rising Mideast demand for long-haul aircraft
Boeing sees rising Mideast demand for long-haul aircraft
Tinseth said around 730 airplanes (31 percent) would replace current fleet assets; 69 percent of the demand is expected to be driven by the rapid growth of air travel in the region.
According to the Boeing Current Market Outlook (CMO), long-range, twin-aisle airplanes — such as the Boeing 777 and 787 Dreamliner — will dominate the Middle East’s order books, reflecting the global network priorities of the region’s leading carriers, including Saudi Arabian Airlines.
Significantly, airlines in the Middle East currently have a backlog of 882 airplanes, 62 percent of which are long-haul, twin-aisle and large aircraft.
“The Middle East has consistently outperformed the global aviation market over the past few years, achieving traffic growth well above the world average,” Tinseth said pointing out that the region’s leading carriers like Saudi Arabian Airlines, Emirates and Etihad Airways continue their global expansion plans. The region is seeing demand for new, efficient, long-haul aircraft, capable of connecting their hubs with any city in the world.
“With a backlog of almost 174,000 long-haul seats, the region’s carriers have significantly more long-haul capacity than airlines in other regions such as Europe and Asia,” he added.
According to the Boeing forecast, twin-aisle aircraft, such as the Boeing 777 and 787 will account for 46 percent of the region’s new airplane deliveries over the 20-year period – as compared to 23 percent globally. Single-aisle airplanes, such as the Boeing 737, will account for 45 percent of regional deliveries through to 2031, while large airplanes such as the Boeing 747 will account for 8 percent of forecasted demand. Regional jets are expected to account for the remaining 1 percent of the demand.
The other highlights of the forecast included the fact that the Middle East also generates its own long-haul origin and destination traffic, with business and leisure hubs in Dubai, historical and resort sites in Egypt, beaches and natural wonders in Oman, and growing Haj pilgrim traffic to Saudi Arabia. Guest workers from South Asia and other regions also boost traffic to the region.
Low-cost carriers, with simplified networks and operations —often flying a single, narrow body airplane type — are taking an increasing share of the region's short-haul traffic.
The single-aisle fleets of airlines like Air Arabia and flydubai can reach many destinations in South Asia, Europe, the CIS, and Africa.
Globally, Boeing has forecast a long-term demand for 34,000 new airplanes, valued at $ 4.5 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. To meet the growing demand for new airplanes, Boeing has increased production of its popular 737, 777 and 787 airplane families.
As of October 2012, he noted that Boeing had a backlog of 4,234 airplanes, of which, 337 have been ordered by customers in the Middle East, including Saudi Arabian Airlines. The company currently has a total of 44 airline customers in the region that operate 476 Boeing airplanes.
“The Middle East’s continued success can largely be attributed to the strong business fundamentals of carriers, including Saudi Arabian Airlines, and their ability to successfully leverage natural geographic advantages,” Tinseth said. “We are confident that our range of market-driving products and solutions will continue to play a critical role in meeting the rapidly growing needs of the region’s aviation industry.”
Saudi Arabian Airlines has ordered eight 787 and fifteen 777 aircraft and they are yet to be delivered, he said.
“We also forecast a long-term demand for 34,000 new airplanes valued at $ 4.5 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,” Tinseth said.
He added that approximately 23,240 airplanes (68 percent of new deliveries) will be single-aisle airplanes, reflecting growth in emerging markets, including China, and the continued expansion of low-cost carriers throughout the world. The twin-aisle segment will also increase, from a 19 percent share of today's fleet to a 23 percent share in 2031. The 7,950 new twin-aisle airplanes will allow airlines to continue expansion into more international markets.
2 years on, Brexit vote has taken a toll on UK economy
- Big companies are sounding the alarm bell, with plane making giant Airbus this week threatening to pull out of the country, where it employs 14,000, if it gets no clarity on future trade deals
- The governor of the Bank of England, Mark Carney, estimated recently that average household incomes are around 900 pounds lower than the bank was forecasting on the eve of the referendum
LONDON: While it’s still unclear what Brexit will look like when it happens next year, the decision to leave has already had a clear effect on the economy: households are poorer, companies are more cautious about investing, and the property market has cooled.
In the two years since the vote to leave the European Union, Britain has gone from being a pace-setter among the world’s big economies to falling into the slow lane. And the uncertainty over what relations with the EU will be when Brexit becomes official on March 29, 2019 could make matters worse.
Prime Minister Theresa May’s Conservative government remains split on what those relations should be. There are those who favor a “hard Brexit,” a clean break that takes Britain out of the bloc’s free trade union but also gives it more freedom to strike new trade deals around the world. Others want to keep Britain as close as possible to the EU, Britain’s biggest trading partner, which could mean it has to obey more of the bloc’s rules.
Big companies are sounding the alarm bell, with plane making giant Airbus this week threatening to pull out of the country, where it employs 14,000, if it gets no clarity on future trade deals.
“Thousands of skilled, well-paid jobs are now on the line because of the shambolic mess the government have created over the Brexit negotiations,” said Darren Jones, the lawmaker for the community where Airbus has its plant.
Before the referendum of June 2016, the British economy had been one of the fastest-growing industrial economies for years. Now, it’s barely growing. In the first quarter of this year it expanded by just 0.1 percent from the previous three-month period, its slowest rate in about five years.
For most people, the first and most noticeable impact was the drop in the pound. The currency slid 15 percent after the vote in June 2016 to a post-1985 low of $1.21. That boosted prices by making imports and energy more expensive for consumers and companies — the rate of inflation hit a high of 3 percent late last year.
The weaker pound helped some companies: exporters and multinationals that do not sell mainly in the UK But it hurt consumer spending and businesses that depend on their shopping. The retail industry was hit hard, with high-profile companies like Toys R Us and Maplin going bust, and supermarket chain Marks and Spencer planning deep cuts.
While prices rose, wages lagged, even though unemployment is at its lowest since 1975, at 4.2 percent.
“After Brexit, prices definitely went up,” said Nagesh Balusu, manager of the Salt Whisky Bar and Dining Room in London. “We struggled a bit earlier this year, so now we’ve increased the prices.” The bar is next to Hyde Park, a popular destination for foreign visitors. “The tourists have a good exchange rate. They know they can spend a little bit more than they usually do. But the locals are coming a little less. They are starting to think about how much they spend.”
The governor of the Bank of England, Mark Carney, estimated recently that average household incomes are around 900 pounds lower than the bank was forecasting on the eve of the referendum.
The real estate market, meanwhile, has cooled considerably, with the number of property sales in London near a historic low last year, according to estate agent Foxtons.
While some foreign prospective buyers were attracted by the drop in the pound, others seem to have been scared off by uncertainty over what Brexit might mean for their investment.
House prices are stagnating after years of gains, also due to expectations that the Bank of England will keep gradually increasing interest rates.
Nic Budden, Foxton’s CEO, predicts that the real estate market will remain challenging this year, while Samuel Tombs, analyst at Pantheon Economics, predicts that house prices will flatline for the next 6 months.
Against the backdrop of uncertainty, businesses have become more reluctant to invest in big projects. Because Brexit could lead to tariffs on EU imports of British goods, companies are hesitant to spend big on British plants and office space before they know what the new rules will be.
Benoit Rochet, the deputy chief of the port of Calais, the French town across the Channel from Britain, complained to a parliamentary committee this month that “we know there is Brexit but we don’t know exactly what Brexit means.”
“You are not alone,” responded the Conservative chair of the committee, Nicky Morgan.