Wednesday July 9, 05:59 PM
Boeing sees sales driven by demand for fuel-efficient aircraft
By Frederic Pouchot
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LONDON (AFP) - The global aircraft market will be boosted in the next two decades by demand for fuel-efficient jets as airlines replace old fleets to combat high oil prices, US plane maker Boeing (NYSE: BA - news) forecast on Wednesday.
The Chicago-based aerospace giant, unveiling its 20-year outlook for the commercial aviation sector, predicted that 43 percent of demand would be for newer and more efficient planes to replace older, fuel-hungry models.
That compared with the previous prediction of 36 percent given last year.
"We see a bigger demand for replacing older, less efficient aircraft," Randy Tinseth, vice president of marketing, told reporters at a London press conference.
Boeing said airlines were eager to replace their older fleets with new fuel-efficient aircraft -- such as Boeing's Dreamliner jet and the Airbus A380 and A350 -- amid record high oil prices that are pushing up the cost of jet fuel or kerosene.
"We're seeing a very dynamic and challenging situation today in the commercial aviation industry," Tinseth said.
"In the past we've faced many other challenges, recessions and oil crises, and what we have learned is that we are in a very resilient industry."
The world's airlines and freight companies will need about 29,400 new aircraft over the next 20 years, including orders that have already been placed, Boeing said in its Current Market Outlook for 2008.
The new aircraft will comprise 2,510 regional jets, 19,160 single- and 6,750 twin-aisle planes. The remaining 980 would be for larger aircraft such as the Boeing 747 and the huge Airbus A380, it added.
The US group had forecast last year that the global market would be worth 2.8 trillion dollars up to 2026, with new orders totalling 28,600 aircraft.
A number of small airlines have gone bust in recent months because of the soaring cost of jet fuel.
World (WRGR.TA - news) crude oil prices hit a record close to 147 dollars per barrel last week but have since fallen back on growing fears about slowing global energy demand, traders said.
Boeing said Wednesday that Asian giant China would also help fuel rapid expansion of the global aircraft sector and overtake North America by 2027.
"The Chinese market today is very small but 20 years from now it will be bigger than today's North American market," Tinseth said.
"Robust growth in China, India and emerging markets will lead towards a balanced airplane demand worldwide.
"We're seeing an increasing share of airplane deliveries to the Asia Pacific region, as well as the Middle East, Latin America, and the Commonwealth of Independent States (CIS)," Tinseth noted.
Boeing's latest forecasts are based on global economic growth of 3.2 percent annually year throughout the forecast period, with passenger traffic rising 5.0 percent and cargo up 5.8 percent per year.
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