Boeing forecasts $1.5 trillion market for new airplanes in Asia Pacific

Boeing says strong passenger growth will be one of the main drivers of new airplane demand in the Asia Pacific region.

 Boeing estimates the region’s airlines will need an additional 11,450 airplanes valued at $1.5 trillion over the next 20 years.

“Asia Pacific is such a strong and dynamic market,” said Randy Tinseth, vice president of Marketing for Boeing Commercial Airplanes during a media briefing before the opening of the Singapore Airshow. “In 2012 we’ll continue to see resilient passenger traffic growth levels above the forecasted world average.”

As a result of the strong demand for air travel over the next 20 years, Tinseth said nearly 80% of Asia Pacific’s new airplanes will be for growth as opposed to replacement.

Boeing’s data projects that passenger airlines will rely primarily on single-aisle airplanes such as the Next-Generation 737 and the 737 MAX, a new-engine variant of the market-leading 737, to connect passengers.

“We’re making solid progress on the 737 MAX,” Tinseth told reporters. “We’ll start wind tunnel testing next week, which is a major design milestone, and sales momentum continues with more than 1,000 orders and commitments from 15 customers.”

For long-haul traffic, Boeing forecasts twin-aisle airplanes such as the 777, which had a record year of orders in 2011, and the 787 Dreamliner will account for 26% of new airplane deliveries.

In the cargo market, Boeing sees a need for 970 new production freighters around the world during the next 20 years.

 Boeing Commercial Airplanes regional director of Cargo Marketing Jim Edgar said the long term prospects for air cargo remain solid despite flat 2011 results.

“We expect positive air cargo traffic growth to return in the latter half of 2012, leading into an average annual growth rate of 5.6% over the 20-year forecast period,” said Edgar. “Our forecast bodes well for the Asia Pacific region, which will continue to be a leader as economic growth drives a tripling of traffic and a near doubling of the world freighter fleet over the next two decades.”