Boeing, Airbus offer rosy outlooks for aircraft demand

SHARE Boeing, Airbus offer rosy outlooks for aircraft demand
boeing_787_dreamliner_newm_3.jpg

Boeing Co. and China Southern Airlines have finalized an order for 12 787-9 Dreamliners to enhance the airlines’ long-haul fleet. | File photo

Boeing and Airbus offered upbeat forecasts Monday for the aircraft market over the next 20 years, trying to tamp down worries that a long boom in plane-making could be ending.

The world’s top plane makers see demand driven by a growth in travel, especially in Asia, leading to a doubling of the world’s aircraft fleet.

Boeing Co. said it expects demand for 39,620 new planes worth $5.9 trillion over the next 20 years, an increase of 4 percent over the company’s 2015 forecast. The Chicago-based company estimates that Asia will account for nearly 40 percent of demand.

Randy Tinseth, Boeing’s vice president of marketing for commercial planes, said aviation will grow over the long term “despite recent events that have impacted the financial markets.”

Europe’s Airbus Group SE Airbus said growing urbanization and wealth in developing countries, especially in Asia, will drive 4.5 percent annual growth in travel. The company forecast demand for more than 33,000 new planes worth $5.2 trillion and said that by 2035, the world’s fleet will have doubled from 19,500 to nearly 40,000 planes, many of them more fuel-efficient than current models.

There has been concern lately that lower oil prices and weakening economies in key markets including China could reduce the demand for new planes. Boeing and Airbus both have huge backlogs, as profitable airlines have placed big orders in recent years.

The new forecasts came on the opening day of the Farnborough International Airshow, a major industry event that is often the setting for announcements about new orders.

In the first big deal announced at the show, Britain is buying nine new Boeing P-8A Poseidon military aircraft. Defense Secretary Michael Fallon said the plane, which is based on the civilian Boeing 737, will help protect Britain’s Trident nuclear submarines and aircraft carriers.

The Defense Ministry said that the cost of delivering the deal, including training, infrastructure and necessary support, will be around $3.88 billion over the next decade.

The deal is part of what Boeing and the U.K. describe as a new long-term partnership that will bring 2,000 new jobs to the U.K. That’s an important boost to a government reeling from fears that jobs will be lost after Britain’s decision to leave the European Union.

“Whatever uncertainties our country faces, I want the message to go out loud and clear: the U.K. will continue to lead the world in both civil and defense aerospace,” Prime Minister David Cameron said. “We aren’t just open for investment; we are a place the global aerospace industry wants to do business – as Boeing’s long term partnership with the U.K. proves.”

The Latest
With Easter around the corner, chocolate makers and food businesses are feeling the impact of soaring global cocoa prices and it’s also hitting consumers.
Despite getting into foul trouble, which limited him to just six minutes in the second half, Shannon finished with 29 points, five rebounds and two assists.
Cowboy hats, bell-bottoms and boots were on full display Thursday night as fans lined up for the first of his three sold-out shows.
The incident occurred about 3:40 p.m. near Minooka. The horse was successfully placed back into the trailer, and the highway reopened about 40 minutes later. No injuries were reported.