Posted on: 14 November 2017 by Mark Thomas
Middle East airlines will need 3,350 new aircraft over the next 20 years, valuing the market at an estimated US$730 billion, according to Boeing.
The aircraft manufacturer, which also confirmed a $2.2 billion deal at the Dubai Air Show to sell an extra 20 737 MAX 8s to ALAFCO Aviation Lease and Finance Company (ALAFCO), said in its market outlook that traffic growth in the region would grow by an estimated 5.6% annually over the period.
Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, said the fact that “85% 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.”
Twin-aisle aircraft are expected to make up nearly half of the new units in the region, and more than 70% of the value at $520 billion. The strong long-term demand for wide-body aircraft in the region was reinforced at the show when Emirates Airline committed to purchase 40 787-10 Dreamliners in a deal valued at $15.1 billion at current list prices.
More than half of the total deliveries in the Middle East will be single-aisle aircraft. Operators will need 1,770 single-aisle aeroplanes, valued at $190 billion, driven by the growth of low-cost carriers.
Kuwait-based ALAFCO’s order for 20 additional 737 MAX 8s doubled the lessor’s order book for the aircraft. It now has 40 737 MAXs on order. The deal was first announced as a commitment at the Paris Air Show in June.