Boeing Forecasts $1 Trillion Growth in Asian Aviation

Boeing predicts the Asia Pacific region will become the world’s largest aviation market over the next 20 years, investing more than $1 trillion in new airplanes. The forecast comes as economic growth in Asia outpaces the rest of the world through the current global recession.

The Asia Pacific region will need 8,960 new commercial jets valued at approximately $1.1 trillion, Boeing said in its latest projection.

"Twenty years from now more than 40 percent of the world's airline traffic will begin, end or take place within the Asia Pacific region," said Randy Tinseth, commercial airplanes vice president for marketing. "That's a big leap for a region that was not even mentioned in our earliest Boeing market forecasts back in the 1950s."

"This is clearly a difficult time in the aviation market, and today's challenges are reflected in the Boeing forecast, but we do expect the growing Asia markets to lead the industry into recovery," said Tinseth.

Strong domestic growth in China, India and other emerging Asian nations will contribute to high demand. The Asia Pacific fleet will nearly triple from 3,910 to a total of 11,170 airplanes.

Boeing's projection shows the Asia Pacific region as a growth leader in the long-term global air cargo market.

"Despite an unprecedented contraction during 2008 and 2009, we remain confident in the strength of the global air cargo market over the long haul," said Jim Edgar, regional director, cargo marketing, Boeing commercial airplanes.

Asian carriers are expected to add about 750 freighters to the region's fleet to accommodate growth and airplane retirements, about 27 percent of the world requirement -- second only to the more mature, but slower growing, North America market.

Contact Thomas L. Gallagher at tgallagher@joc.com.