Boeing sees $4 trillion jet sales

 
City A.M. Reporter
PASSENGER jet sales will reach $4 trillion (£2.5 trillion) over the next 20 years, Boeing predicted yesterday as it hiked demand forecasts on the eve of the Paris Air Show.

The US planemaker estimated a total of 33,500 jetliner sales by all manufacturers between 2011 and 2030, led by Asia, which has already toppled North America as the busiest region for air travel and is set to dominate coming decades.

Last year Boeing predicted 30,900 plane sales worth $3.6bn over 20 years up to 2029.

The increase partly reflects a healthier starting point, as the aviation industry has already turned the corner from recession. But it also factors in an eight per cent increase in anticipated demand for single-aisle jets like the Boeing 737 and Airbus A320, a segment of the market worth $2 trillion.

“The world market has recovered and is now expanding at a significant rate,” said Randy Tinseth, vice president of marketing at Boeing’s commercial division.

Boeing’s forecast includes 11,450 new jets for Asia in a confirmation of the region’s transport-intensive growth despite the expansion of high-speed rail networks in China.

“The core of the aviation market has now moved from the US and North America to the Asian-Pacific market place,” Tinseth said.

By the end of 2012, there will be 12,000 km of high-speed rail lines in China, as much as in the rest of the world.

That will curb some demand for air travel but will also promote economic growth that should result in further investment in air travel, with 97 airports set to open in China by 2020, Tinseth said.