Demand for planes to soar for 20 years, Boeing projects
Boeing Co. projected Tuesday demand for commercial airliners will continue to grow during the next 20 years, particularly in Asia, with a need for 41,030 planes worldwide valued at $6.1 trillion.
The Chicago-based manufacturer said the current market outlook, which was announced at the biennial Paris Air Show, projects 3.6% more demand than last year’s forecast.
Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes, said passenger traffic is expected to grow 4.7% each year for the next two decades, leading to a need for more planes to carry those passengers.
“The market is especially hungry for single-aisle airplanes as more people start traveling by air,” Tinseth said.
For example, Boeing announced Monday that Lion Air Group had committed to 50 of the manufacturer’s 737 MAX 10 aircraft. Boeing announced Tuesday that Aviation Capital Group ordered 20 of those planes, Okay Airways ordered 15 of the 737 MAX planes, Avolon committed to 75 of the 737 MAX 8, Blue Air ordered six 737 MAX, Ryanair finalized an order for 10 737 MAX and China Aircraft Leasing Group ordered 50 737 MAX planes. Those orders combined for more than $25 billion at list prices.
Mick Hickey, Ryanair’s chief operations officer, called the next generation of 737 a “game changer” with eight more seats than the current 737-800 and technology that reduces fuel consumption and noise.
Airbus also announced a slew of single-aisle orders. Delta Air Lines ordered 10 more A321 aircraft, CDB Aviation Lease Finance signed a memo for 30 A320neo and 15 A321neo, and Viva Air committed to 50 planes from the A320 family.
Boeing said low-cost carriers and new markets would spur demand for 29,530 single-aisle planes, a projection 5% higher than last year, worth a combined $3.2 trillion. The projection for 9,130 wide-body passenger planes such as the 787 and 777X worth a combined $2.5 trillion anticipates a “larger wave” of potential replacement aircraft early in the next decade, the company said.
Asia, including China, is projected to lead the demand with a need for 16,050 planes.