LE BOURGET, FRANCE - Boeing has released a forecast for aerospace services demand, projecting the need for expansive services over the next 10 years, valued at $2.6 trillion dollars.
The company released its Services Market Outlook at the Paris Air Show. The outlook shows the tremendous potential for growth in the aerospace services markets Boeing serves, including:
- Maintenance, engineering and upgrades
- Information services and analytics
- Training and professional services
Trends in commercial and government aircraft and services show customers are relying on technology and data to drive smarter business decisions and improve the commercial passenger experience, as well as warfighter safety and effectiveness. Advances in connectivity are also making it easier to predict and respond to the forces that impact the success of aircraft and those they serve.
"It is clear that our customers, in both commercial and government sectors, are searching for more efficient ways to keep their fleets operating and ready for use in an age of rapid technological advancement," said Stan Deal, president and CEO of Boeing Global Services, Boeing's new dedicated services business focused on the needs of global defense, space and commercial customers.
While North America and Europe will remain the largest commercial services markets, the fastest growth over the next 10 years will occur in Asia. Overall, Boeing expects the total commercial aviation support and services 20-year market to be worth almost $8.5 trillion between 2017 and 2036.
"As commercial airline fleets continue to grow worldwide, demand for aftermarket services designed to increase efficiency and extend the economic lives of airplanes will follow," Deal said.
In government services, growth of the United States market - currently the largest individual market - will remain flat. But international markets adding rotorcraft and commercial derivative aircraft, led by Middle East and Asia-Pacific customers, are expected to grow.
"Government aviation services are expected to significantly outpace overall fleet growth, driven in large part by sustainment and modernization requirements around the globe," Deal said. "Using our distinct advantage of drawing upon expertise in both areas allows Boeing Global Services to provide the very best value to our customers while continuing to invest and grow in the services marketplace."
"Passenger traffic has been very strong so far this year, and we expect to see it grow 4.7 percent each year over the next two decades," said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. "The market is especially hungry for single-aisle airplanes as more people start traveling by air."
The single-aisle segment will see the most growth over the forecast, fueled by low-cost carriers and emerging markets. 29,530 new airplanes will be needed in this segment, an increase of almost 5 percent over last year.
The forecast for the widebody segment includes 9,130 airplanes, with a large wave of potential replacement demand beginning early in the next decade. With more airlines shifting to small and medium/large widebody airplanes like the 787 and 777X, the primary demand for very large airplanes going forward will be in the cargo market. Boeing projects the need for 920 new production widebody freighters over the forecast period.
The Asia market, including China, will continue to lead the way in total airplane deliveries over the next two decades. Worldwide, 57 percent of the new deliveries will be for airline growth, while 43 percent will be for replacement of older airplanes with new, more fuel efficient jets.
New Airplane Deliveries through 2036 by region
| |
Region
|
Airplane deliveries
|
Asia
|
16,050
|
North America
|
8,640
|
Europe
|
7,530
|
Middle East
|
3,350
|
Latin America
|
3,010
|
C.I.S.
|
1,230
|
Africa
|
1,220
|
Total
|
41,030
|
Boeing, United Airlines Announce Order for 100 737 MAX 10s
Boeing and United Airlines announced an agreement at the 2017 Paris Air Show to convert 100 of its current 737 MAX orders into 737 MAX 10s, becoming the largest single 737 MAX 10 customer in the world.
Boeing and United Airlines announced an agreement at the 2017 Paris Air Show to convert 100 of its current 737 MAX orders into 737 MAX 10s, becoming the largest single 737 MAX 10 customer in the world.
United also announced an order for four additional 777-300ER aircraft.
"The 737 MAX 10 will enable us to continue using larger and more efficient aircraft within our domestic network and better meet the needs of our customers today and into the future," said Andrew Levy, United Airlines executive vice president and chief financial officer.
"The addition of this advanced aircraft to our fleet will enable us to continue to offer the state-of-the-art flying experience our customers expect when traveling with us," said Gerry Laderman, United Airlines senior vice president of finance, procurement and treasurer.
United expects to begin taking delivery of the 737 MAX 10 in late 2020.
United has flown nearly every version of the 737 that Boeing has produced. The new 737 MAX 10 will add to that legacy, providing United with another in a long line of highly successful aircraft.
"We're excited that our long partnership with United will extend far into the future," said Boeing Commercial Airplanes President and CEO Kevin McAllister. "The 737 MAX 10 will provide even more flexibility to United's route schedule and will bring to their operation the best economics of any airplane in the single-aisle segment. We're proud that United's 777-300ER fleet continues to grow."
United has now ordered a total of 18 777-300ERs and began taking delivery of the aircraft last year. The 777-300ERs feature the airline's all-new United Polaris business class, featuring custom-designed, exclusive-to-United seats, an elevated dining experience, new custom bedding from Saks Fifth Avenue and new amenity kits.
Boeing, SpiceJet announce commitment for 40 737 MAX airplanes
Boeing and SpiceJet signed a memorandum of understanding for 40 737 MAX airplanes. The agreement, valued at $4.7 billion at current list prices, is split evenly between 20 new orders for the 737 MAX 10 and conversions of 20 of the low-cost carrier's 737 MAX 8 airplanes from its existing order to 737 MAX 10s.
Boeing and SpiceJet signed a memorandum of understanding for 40 737 MAX airplanes. The agreement, valued at $4.7 billion at current list prices, is split evenly between 20 new orders for the 737 MAX 10 and conversions of 20 of the low-cost carrier's 737 MAX 8 airplanes from its existing order to 737 MAX 10s.
The order will be posted to the Boeing Orders & Deliveries website once finalized.
"As a Boeing 737 operator and current customer of the 737 MAX, we are proud to be a part of the launch of the 737 MAX 10 and to be the first airline in India to order the newest version of the 737, which will enable us to maximize revenue on our dense routes while having a lower unit seat cost," said Ajay Singh, Chairman and Managing Director, SpiceJet. "With the introduction of our 737 MAXs next year, we will be able to further expand our network, while keeping our costs low for our customers."
SpiceJet operates a fleet of 35 Next-Generation 737s and 20 Bombardier Q400s. The carrier plans to grow its operational fleet to 200 airplanes by the end of the decade and looks to expand regionally with the new 737 MAX family of airplanes. SpiceJet will take delivery of its first 737 MAX in 2018.
"SpiceJet continues to be an aviation leader and strong Boeing partner, and we are honored to have them join 737 MAX 10 launch group," said Kevin McAllister. "The additional 20 737 MAX 8s and capacity provided by these 20 new 737 MAX 10s will allow SpiceJet to offer even more passengers their award-winning on-board experience, while the airplane's efficiency will keep SpiceJet profitable."
Boeing, AerCap Announce Order for 30 787-9 Dreamliners
Boeing and AerCap announced an order for 30 787-9 Dreamliners at the 2017 Paris Air Show. The agreement, valued at $8.1 billion at list prices, makes AerCap the largest customer for the 787 Dreamliner.
Boeing and AerCap announced an order for 30 787-9 Dreamliners at the 2017 Paris Air Show. The agreement, valued at $8.1 billion at list prices, makes AerCap the largest customer for the 787 Dreamliner.
"The addition of these 30 Boeing 787 aircraft to our portfolio makes us the world's largest owner of 787 Dreamliner," said AerCap CEO Aengus Kelly. "This strengthens our ambition to satisfy our customers' demand for an aircraft they truly value due to its economics, operating efficiencies and high levels of in-cabin comfort and innovation."
AerCap has taken delivery of 55 787s, and now after this order will have a further 67 787s on backlog, including sale leasebacks.
"AerCap understands the value proposition the 787 brings to its airline customers," said Kevin McAllister. "We appreciate their continued confidence in the Dreamliner, and we're excited to have them become the largest 787 customer in the world."
