“Boeing Co. (BA) raised its 20-year forecast for commercial jet demand by 3.8 percent as air traffic outstrips global economic growth and airlines refresh their fleets with $4.8 trillion in new planes.
Airliner sales will total 35,280 new jets during the next two decades, compared with a 2012 projection of 34,000 planes, Boeing said today in Paris before next week’s Paris Air Show. All the gain will come from purchases of the single-aisle models that are the workhorses of carriers’ fleets, Boeing said.
Boeing is betting on the durability of that expansion as it considers boosting output beyond the record pace already set for narrow- and wide-body planes. There’s no sign of a bubble, Randy Tinseth, marketing vice president for commercial airplanes at Chicago-based Boeing, said in a briefing ahead of the forecast.
“Passenger traffic has been very resilient,” Tinseth said. “Every indicator that we see in the market says that demand is real and there’s a need to increase production.”
Boeing’s order estimate is more important than the projected gain in value — up 8.3 percent from last year’s estimate — because that tally is based on list prices typically subject to discounts. The planemaker’s rivalry with Airbus SAS will change over the coming decades with the arrival of new models such as Bombardier Inc. (BBD/B)’s CSeries and Commercial Aircraft Corp. of China’s C919….”
If you enjoy the content at iBankCoin, please follow us on Twitter
