Boeing forecast that the Middle East will require $745bn in aviation services through 2037 to keep pace with growing passenger and freight traffic in the region, according to a new report released by Boeing on Monday.
Boeing’s Services Market Outlook (SMO) 2018-2037 projected nearly 3,000 new commercial airplanes, 218,000 new personnel, including 60,000 pilots, 63,000 technicians, and 95,000 cabin crew will be needed in the Middle East over the next 20
The Middle East would drive 8% of global demand for aviation services, valued at $745bn
Aviation in the Middle East would grow at 4.6% annually
218,000 personnel (including 60,000 pilots, 63,000 technicians and 95,000 cabin crew) would be required in the Middle East by 2038
The growing fleet requires aviation services, including supply chain support (parts and parts logistics), maintenance and engineering services, and aircraft modification.
According to the report, the Middle East will drive more than 8% of global demand for aviation services, representing $745bn, and growing at a projected 4.6% annually.
Boeing highlighted the Middle East’s unique position geographically in the world. The location of the region on the borders of Africa, Asia and Europe gives the region the opportunity to create hubs connecting east, west, north and south, in a way that many other regions simply cannot.
Within eight hours flying time of the Middle East, carriers can reach 65% of the global economy and around 80% of the world’s population. And with fifth freedom flights and new airline partners, Middle East carriers can look forward to literally connecting anywhere with anywhere.
This has led them to estimate the need for 2,990 new aircraft over the next 20 years, an investment that they estimate to be worth $660bn. Taking into account the Middle East’s love for the widebody jet, the split of investment has been predicted at:
70% widebody orders, valued at $460bn
27% single aisle orders, valued at $180bn
<1% regional jet orders, valued at less than $1bn
3% freighter jet orders, valued at $20bn
“The Middle East is an unmatched location to connect the growing markets of Asia, Europe and Africa. This feeds the appetite in the region for new commercial airplanes and the services to operate and maintain those jets,” Ihssane Mounir, senior vice president (Commercial Sales and Marketing) for The Boeing Company.
Boeing has a unique advantage in providing aviation services as it can draw upon the expertise of its commercial airplanes and defence businesses to provide more value to customers.
“Our Middle East customers gain tremendous value when we pair their operational knowledge with our OEM expertise, advanced technologies, and decision support tools to help maximize efficiency in their operations,” said Debra Santos, chief marketing officer (Commercial Services) for Boeing Global Services.
“This gives their passengers a positive flight experience that keeps them coming back.”
Boeing Global Services continues to outpace the aerospace services market growth rate of 3.5% as it broadens its portfolio of solutions to meet customer needs.
Operating as one of Boeing’s three business units, Global Services is headquartered in the Dallas area.
The required aviation services, including supply chain support (parts and parts logistics), maintenance and engineering services, and aircraft modification.