ABU DHABI, 21 March 2007 — Airlines will need over 27,000 new aircraft worth more than $2.6 trillion over the next 20 years, providing tremendous opportunities for aircraft financiers, the new international aviation conference taking place in Abu Dhabi said.
The three-day conference, part of the Aviation Procurement Expo (APEX), being held at the Abu Dhabi National Exhibition Center, will end today. It was officially opened by the event’s patron, Dr Sheikh Ahmed ibn Saif Al-Nahyan, chairman of Etihad Airways and the Gulf Aircraft Maintenance Company (GAMCO), on Monday.
John Matthews, managing director of the Middle East and Africa Region, Aircraft Financial Services for Boeing Capital Corporation, said at the Aviation Procurement and Finance Conference that the continuing liberalization and deregulation of the airline industry will drive additional new entrants to enter the airline market as well as spurring strong growth in airline passenger traffic and aircraft demand.
“Aircraft are an excellent investment since they have long economic lives and are mobile assets, providing the opportunity to move them from one airline to another. Boeing designs and supports its aircraft to enhance this mobility or liquidity by working closely with financiers to obtain their input on new products,” Matthews said.
He said the new entrants in a more liberalized airline sector are driving growth in passenger traffic, aircraft sales and financing, with half of the current operators having launched operations since 2000. Over the next 20 years, 27,000 new aircraft worth more than $2.6 trillion will be needed as air travel continues to boom, and the worldwide freighter fleet will double in size, with a shift toward wide-body aircraft. More than 200 delegates from international airlines and related industry sectors are attending the conference which is also examining Islamic financing of aircraft, strategic sourcing in the aviation sector and fuel procurement.
