28 August 2007

Boeing projects US$ 70 billion market for Russia and the CIS

Russia and the Commonwealth of Independent States (CIS) will require 1,060 new airplanes worth about $70 billion over the next 20 years, according to The Boeing Company's updated annual forecast for the commercial airplane market.

This year marks the first year that Boeing has published its forecast for the Russia/CIS region as part of the Current Market Outlook.


Airplanes in the Boeing 737 size range will account for 44% of all commercial jetliners delivered to Russian and CIS airlines during the next 20 years, amounting to 470 units valued at $30 billion.


Eleven percent -- or 110 units at a value of $20 billion -- will be twin-aisle airplanes like the Boeing 777 and 787. Forty-three percent will be smaller regional jets while airplanes of the Boeing 747 size or larger will comprise 2% of the market.


The flying public's demand for more point-to-point travel options will also stimulate demand for smaller airplanes. In the past, large airplanes like the 747 were the only airplanes able to fly very long distances. This forced large numbers of passengers to make connections through major hubs to get to their ultimate destinations, through what is called the hub-and-spoke system.


As smaller airplanes such as the Next-Generation 737, the 777 and the 787 are much more fuel efficient thanks to advanced technologies and innovation, they are able to fly longer distances with fewer passengers than a 747 and still remain profitable for the airlines that operate them.


Worldwide, Boeing estimates the fleet will require 28,600 new jets by 2026 worth about $2.8 trillion. The Boeing market forecast is widely regarded as the most comprehensive and respected analysis of the commercial aviation market.