Boeing forecasts that airlines in the Middle East will require 3,180 new airplanes over the next 20 years, valued at an estimated $730 billion.

While approximately 30 per cent of that demand – 960 airplanes – will replace today’s fleets, 70 per cent of the demand is expected to be driven by the rapid fleet expansion in the region, a company official said on Wednesday.

The aircraft maker reiterated its June forecast at an event ahead of the biennial Dubai airshow next week, compared to 2,950 aircraft in its 2014 forecast.

According to the Boeing Current Market Outlook (CMO), single-aisle airplanes such as the 737 MAX will command the largest share of new deliveries, with airlines in the region needing approximately 1,410 airplanes. These new airplanes will continue to stimulate growth for low-cost carriers and will provide needed replacements for older, less-efficient airplanes.

"Traffic growth in the Middle East continues to grow at a healthy rate and is expected to grow 6.2 per cent annually during the next 20 years," said Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes.

“About 80 percent of the world's population lives within an eight-hour flight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries,” he said.

According to the Boeing forecast, twin-aisle aircraft will account for a little under half of the region’s new airplane deliveries over the 20-year period, compared to 23 per cent globally. This is demonstrated by the strong order book and deliveries for the 787 and 777, underlining how Boeing is meeting customer demand in the region by focusing on enhancing passenger experience and improving operating economics and capability. - TradeArabia News Service