Expects To See Long-Term Growth For Oceania Aviation
Boeing officials say that over the
next 20 years, airlines in Australia, New Zealand and the South
Pacific Islands will require 670 new airplanes valued at
approximately $90 billion.
Boeing Commercial Airplanes Vice President of Marketing Randy
Tinseth shared the company's market data and forecast Tuesday at a
media conference focused on the global and Oceania commercial
airplane market.
Globally, airlines will need 29,000 new airplanes through 2028,
valued at $3.2 trillion. "It is encouraging that 27 percent of our
20-year forecast already is on order," Tinseth said. "Equally
important is that this backlog is well balanced -- by type of
airplane, by airline business model, and region of the world."
Tinseth noted that as of the third quarter of 2009, Boeing had a
backlog of 3,400 airplanes, valued at $254 billion. Airlines and
the aviation industry in general have been hurt by a challenging
and volatile business environment, Tinseth said. The world economy
has been in recession, passenger and cargo traffic have declined,
and fuel prices are volatile. "But data indicates that the economic
downturn has reached bottom and recovery has begun," Tinseth said.
"Global recovery will be a long, slow process, and airlines will
continue to adapt to the realities of the market."
The Australian economy has fared better than the rest of the
world, Tinseth noted, growing while most of the world dipped well
below 2008 levels. Global recovery to the 2008 peak won't occur
until perhaps 2010, he said. "Economic conditions obviously affect
air travel in the region," Tinseth said. "Oceania air travel growth
is expected to be above five percent, compared to a world average
growth of 4.9 percent."
Sixty-seven percent of Oceania's commercial airplane deliveries
through 2028 will be for growth, Tinseth said. The remainder of
airplane deliveries will replace older, less efficient airplanes.
Looking at the Asia Pacific region in its entirety, long-term air
annual air traffic growth is projected to be 6.9 percent over the
next 20 years, Tinseth added.
In the near term, airlines have adapted to the realities of the
market by adjusting capacity, improving efficiency and
restructuring, he said. In the longer term, airlines will continue
to invest in more efficient, environmentally progressive airplanes
that also serve the travel patterns of air travelers with their
ability to fly to more places more often. "Boeing is focused on a
simple strategy," Tinseth said. "And that is to provide our
customers with airplanes that are the right size with the right
capabilities at the right time."