By: Ahmad Awad
Kuwait – Mubasher: The Middle East (ME) region will require 3,310 new airplanes over the next 20 years, worth an estimated $770 billion, president of Boeing Middle East, North Africa, and Turkey, Bernard Dunn, told Mubasher.
Nearly 70% of the demand is driven by the rapid fleet expansion in the ME, the president noted, adding “This growth is fueled by the region’s economic growth and strategic location that provides one-stop connections to 80 percent of the world’s population.”
In an exclusive interview with Mubasher, Dunn said that over the next 20 years, the company expects a growth of 5.9% in passenger traffic each year in the ME region. He added that because of the number of people transiting through the region, Boeing expects airlines to take delivery of the greatest number of large widebody airplanes and the second greatest number of medium widebody airplanes.
“Our backlog remains strong with more than 5,600 airplanes valued at $462 billion,” Dunn clarified.
As of October 2016, Boeing has a current backlog of 551 aircraft for airlines in the ME. “We expect to continue to deliver our range of products to customers across region, some in 2017 and some after. We do not specify specific delivery dates,” the president of the company said.
As oil prices significantly declined, the long-term effects have not been fully realized, Dunn said, highlighting that there is a high demand for Boeing products for commercial aviation as well as humanitarian and security missions throughout the world.
“Boeing projects the e-commerce market will be one of the primary factors driving growth, reaching $3.6 trillion by 2020 globally,” Dunn told Mubasher.
Boeing expects the world air cargo fleet to expand by 70% by 2035, adding a total of 2,370 freighters to the market, he said.
“Boeing products make up more than 90% of the world's dedicated freighter capacity and offers integrated solution for freighter operators, whether they carry express cargo or industrial goods,” Dunn clarified.
He added that Boeing Defense, Space & Security (BDS) has a strong relationship with the ME, expanding its relationships across the region with a focus on Saudi Arabia, the UAE, Kuwait, Qatar, Oman, and Egypt.
“Based on our Memorandum of Agreement with Iran Air announced in June, we applied for a U.S. government license that would allow us to complete the sales anticipated in the MOA. We have received that license and remain in talks with Iran Air based on the MOA. Any final sales agreement would have to adhere to the license we’ve been issued,” Dunn told Mubasher.
Translated by: Ingy ElSafy
