Boeing Forecasts Rise in Asia Pacific Airline Traffic over 20 Years

Boeing is predicting that in the coming 20 years, Southeast Asia’ major airlines will be ordering over 2,100 new aircraft which could total an order for roughly US$330 billion. Randy Tinseth, the Vice President of Marketing at Boeing Commercial Airplanes, announced the company’s collected market data and also predicted that the market would continue to boom in Southeast Asia. Mr. Tinseth made these forecasts at a press conference held on Tuesday. On a worldwide scale, the next 20 years will see the global airline market need a total of 29,000 new aircraft totalling $3.2 trillion in revenues.
Tinseth said that the company is reassured by the fact that already 27 percent of their forecast for the next 20 years is already organized. He also said that the orders would be well balanced in terms of type, model, and region for aircraft orders.

As of their third quarter Boeing was backlogged with already existing orders totalling 3,400 airplanes for a total revenue value of US$254 billion. Currently, the aviation industry has been suffering some of the worst of the economic climate with passenger and cargo traffic on the decline and fuel prices skyrocketing.

However, Boeing’s market data shows that the worst of the crash is over, and that recovery is beginning to show some signs of emerging, but Mr. Tinseth stresses that global recover for the aviation industry will be a slow, long process.

The market which Boeing has forecasted to show the most significant growth is Southeast Asian airlines, which are expected to increase their long-term annual traffic by 6.9 percent over the course of the next 20 years. In 20 years time, said Tinseth, Asia Pacific will most likely account for 41 percent of overall air travel which will be just under 7 percent increase from it’s current 32 percent. Furthermore, Boeing is forecasting that in ten years time, Asian Pacific airlines will dominate the world travel market.