November 14, 2017: Boeing seems to be upbeat about the traffic growth in the Middle East, and has projected that the region would need 3,350 new airplanes over next two decades with an estimated investment of $730 billion.
"Traffic growth in the Middle East is expected to grow at 5.6 percent annually during the next 20 years," said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes.
"The fact that 85 percent 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," he adds.
Further, twin-aisle airplanes are expected to make up nearly 50 percent of the new airplanes in the Middle East, which is over 70 percent of the value at $520 billion. Both percentages are significantly higher than the global average. The strong long-term demand for wide body airplanes was reinforced at the recently concluded Dubai Airshow by Emirates Airline which announced a commitment to purchase 40 Boeing 787-10 Dreamliners in a deal valued at $15.1 billion.
According to reports, over half of the total deliveries in the Middle East will be single-aisle airplanes, such as the 737 MAX. Operators in the region would need 1,770 single-aisle airplanes valued at $190 billion, driven by the growth of low-cost carriers.
Meanwhile, Boeing's presence and support for the Middle East also includes Global Services, the company's third and newest business unit which is expanding its service offerings to better support the region's airlines and aircraft.