Boeing: Airlines in Middle East expected to need 3,350 new airplanes over next 20 years

International Association for Sustainable Aviation

Growing airport hubs, diverse business models and infrastructure investments driving regional demand

Dubai, November 13, 2017: Boeing forecasts that airlines in the Middle East will need 3,350 new airplanes over the next 20 years, valued at an estimated $730 billion. Boeing presented its 2017 Current Market Outlook (CMO) for the region during the Dubai Airshow.

“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.”

Twin-aisle airplanes are expected to make up nearly 50 percent of the new airplanes in the Middle East, and more than 70 percent of the value at $520 billion. Both percentages are significantly higher than the global average. The strong long-term demand for widebody airplanes was reinforced at the show as Emirates Airline announced a commitment to purchase 40 Boeing 787-10 Dreamliners in a deal valued at $15.1 billion at current list prices.

More than half of the total deliveries in the Middle East will be single-aisle airplanes such as the 737 MAX. Operators in the region will need 1,770 single-aisle airplanes valued at $190 billion, driven by the growth of low-cost carriers.

Around the world, Boeing has forecasted long-term demand for 41,030 new airplanes, valued at $6.1 trillion. These new airplanes will replace older, less (fuel) efficient airplanes, benefiting airlines and passengers and stimulating growth in emerging markets and innovation in airline business models.

International Association for Sustainable Aviation

Boeing 777-300ER showing the colors of Emirates
Photo: Boeing

For more information on Boeing’s Current Market Outlook please visit:
http://www.boeing.com/cmo

Source: Boeing

Boeing Plans to Establish Middle East Headquarters at Dubai South

IASA: Nachhaltige Luftfahrt - Sustainable Aviation

Dubai, Nov. 8, 2015: Boeing today announced at the Dubai Airshow a Memorandum of Agreement with Dubai South, outlining the company’s intention to establish its Middle East headquarters in the city’s Aviation District.

The agreement was confirmed at a private signing ceremony attended by His Highness Sheikh Ahmed Bin Saeed Al Maktoum, chairman, Dubai Aviation City Corporation (the parent organization of Dubai South); Khalifa Al Zaffin, executive chairman, Dubai Aviation City Corporation; Dennis Muilenburg, Boeing president and CEO; Raymond Conner, president and CEO, Boeing Commercial Airplanes; Marc Allen, president, Boeing International; and Bernard Dunn, president, Boeing Middle East, North Africa and Turkey.

Speaking at the ceremony, High Highness Ahmed Bin Saeed Al Maktoum, said: “I congratulate Boeing on its strategic decision to establish its regional headquarters at Dubai South – a city that embodies Dubai’s aerospace vision. I am confident that the new address will deliver a solid advantage to Boeing as it seeks to expand its footprint in Dubai and in the region.”

The agreement details a framework for Boeing’s operations to be housed at the recently rebranded Dubai South, previously known as Dubai World Central, which will include Boeing Middle East’s headquarters, a spare parts warehouse, a distribution facility and a maintenance training facility to service the region. The aim is to solidify plans in 2016 and commence operations by the end of 2017.

“Boeing is the world’s leading aerospace company, and to ensure our regional competitiveness, we have taken a strategic decision to establish our regional headquarters in what will become an unrivaled logistics and aviation hub,” said Muilenburg. “This agreement demonstrates Boeing’s commitment to our customers in the region and support for the Dubai government’s vision for Dubai South.”

About Dubai South: Dubai South – the rebranded Dubai World Central – is an emerging 145 sq. km. city situated within the emirate of Dubai that will ultimately sustain a population of one million. Launched as a Government of Dubai project in 2006, the city is mandated to embody the vision of His Highness Sheikh Mohammed Bin Rashed Al Maktoum by manifesting the urban and societal themes as outlined in the Dubai Plan 2021. These themes relate to becoming a city of happy, creative and empowered people, an inclusive and cohesive society; the preferred place to live, work and invest, a smart and sustainable city, and a pivotal hub in the Dubai South’s economic platform supports every conceivable kind of business and industry. The city is also home to the now-operational Al Maktoum International Airport –the largest airport in the world when complete – and the World Expo 2020.

Source: Boeing