Business

October 26, 2012

Boeing projects $820 billion market for 7,290 new airplanes in North America

Boeing forecasts that air carriers in North America will take delivery of 7,290 new airplanes over the next 20 years at a market value of $820 billion.

Taking retirements of airplanes into account, the North America fleet will grow from 6,650 airplanes today to about 8,830 airplanes by 2031.

“The North American commercial aviation market is about to record a third consecutive year of profit, with modest passenger traffic growth,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes, who released Boeing’s 2012 North America market outlook Oct. 25 in Toronto. “The long-term outlook for the North American airline industry is approximately 3 percent annual traffic growth through the forecast period. The market is shaped by aggressive growth of low-cost carriers and the need to replace aging airplanes in the fleets of the established network carriers.”

The network carriers are expected to maintain strict capacity discipline. Low-cost carriers will continue to outpace network carrier growth to accommodate increased demand and fill some markets abandoned by network carriers. Financial stability will also be a key indicator of future growth. Several airlines have indicated growth planning to be executed when returns are sufficient to fund their strategic goals.

Boeing forecasts single-aisle airplanes will grow to 69 percent of the total North America fleet by 2031. High fuel prices are intensifying the need for new fuel-efficient airplanes, prompting several airlines in the United States to accelerate their fleet renewal programs. Alaska, American, Delta, Southwest and United have announced plans to replace some of their older, less efficient airplanes with Next-Generation 737s or the new 737 MAX. Both the Next-Generation 737 and the 737 MAX offer significant advantages in improved capabilities, fuel efficiency and maintenance costs, as well as enhanced environmental performance.

Long-haul international traffic to and from North America is forecasted to grow at an annual rate of approximately 5 percent. The international growth is primarily driven by anticipated passenger traffic to Southwest Asia, China, the Middle East, Africa and South America. Passenger traffic between North America and those regions is forecasted grow at or above 6 percent per year. This growth in the long-haul segment is expected to result in demand for an additional 1,320 new fuel-efficient, twin-aisle airplanes such as the Boeing 787 Dreamliner.

Large airplanes (747-size and larger) will not see significant demand in North America, with only about 40 airplanes, or 1 percent of the total investment.

More information on the North America market forecast can be found at http://www.boeing.com/commercial/cmo/north_america.html.

 




All of this week's top headlines to your email every Friday.


 
 

 

U.S. Air Force selects Cubic for Moroccan P5 air combat training system

Cubic Defense Systems, a subsidiary of Cubic Corporation announced April 11 it has been awarded a contract valued at more than $5 million from the U.S. Air Force to supply its P5 Combat Training System to the Moroccan Air Force. Morocco will join the United States Air Force, Navy, and Marine Corps, along with a...
 
 

Boeing realigns engineering to enhance customer Support

Boeing announced April 10 it is centralizing customer support for in-service airplanes at its Boeing Commercial Airplanes Engineering Design Center in Southern California, as the company continues to focus on increasing competitiveness while enabling continued growth of the global airline industry. “We’re creating a single location for customer support at the Southern California des...
 
 
Northrop Grumman photograph by Alan Radecki

Legendary Collier Trophy awarded to X-47B team

Northrop Grumman photograph by Alan Radecki The Northrop Grumman-built X-47B Unmanned Combat Air System (UCAS) approaches the flight deck of the USS George H.W. Bush (CVN 77), seconds before making history by being the first un...
 

 
Lockheed Martin photograph

First C-130J Super Hercules ëShimshoní arrives In Israel

Lockheed Martin photograph On April 4, 2014, the Israeli Air Forceís first C-130J Super Hercules aircraft left the Lockheed Martin Aeronautics facility where it was built in Marietta, Ga., for Nevatim Air Base, Israel. This Su...
 
 

Lockheed Martin opens new office in Israel

Lockheed Martin Chairman, President and CEO Marillyn Hewson officially opened the company’s newest office in Israel April 9 to support the corporation’s growing presence in that important country. The new office, located in Be’er Sheva, further demonstrates the Corporation’s commitment to supporting the Israeli Defense Force and their “Move to the South” campaign. ...
 
 

Kelly Aviation Center is now Lockheed Martin Commercial Engine Solutions

Kelly Aviation Center, a leading provider of aircraft engine maintenance, repair, and overhaul for international commercial and military customers, has changed its name to Lockheed Martin Commercial Engine Solutions. “Since 1999, we have been proud to be Lockheed Martin’s only jet engine MRO service provider,” said Amy Gowder, vice president and general manager of LMCES....
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>