Boeing sees cloud over Mid-East orders
By Praveen Menon |
May 9, 2011, Monday
|
Print Edition
Print Edition
PLANE maker Boeing said yesterday that high fuel prices and the social unrest in the Middle East may have an impact on the orders it receives from the region in the short term.
The United States aircraft manufacturer, which has a backlog of 3,445 airplanes, said 345 of the these planes have been ordered by airline customers from the Middle East.
Randy Tinseth, Boeing's vice president of marketing, said the recent events in the region could possibly affect orders placed by airlines.
"It's possible ... but I think fundamental demand is there and I think airlines will order for the long-term view of the market."
He said Boeing had 48 cancellations this year, which are a little higher than average.
He said that 2011 has not been as good for business as 2010.
"Profitability will be down as well (in 2011) because of high fuel pricing and growth is not as dynamic as we saw last year."
Boeing has a total of 47 customers in the region including the three big carriers - Emirates, Qatar Airways and Etihad Airways.
Tinseth said Boeing's annual forecast shows that the Middle East market would require 2,340 airplanes worth US$390 billion by 2029, expanding their fleet by over 150 percent.
He said that the rising fuel prices will be the biggest challenge for the industry.
"Fuel price is the largest expense that airlines have and with the 25 to 30 percent rise we have seen, it is a great challenge and great pressure for airlines," Tinseth pointed out.
The United States aircraft manufacturer, which has a backlog of 3,445 airplanes, said 345 of the these planes have been ordered by airline customers from the Middle East.
Randy Tinseth, Boeing's vice president of marketing, said the recent events in the region could possibly affect orders placed by airlines.
"It's possible ... but I think fundamental demand is there and I think airlines will order for the long-term view of the market."
He said Boeing had 48 cancellations this year, which are a little higher than average.
He said that 2011 has not been as good for business as 2010.
"Profitability will be down as well (in 2011) because of high fuel pricing and growth is not as dynamic as we saw last year."
Boeing has a total of 47 customers in the region including the three big carriers - Emirates, Qatar Airways and Etihad Airways.
Tinseth said Boeing's annual forecast shows that the Middle East market would require 2,340 airplanes worth US$390 billion by 2029, expanding their fleet by over 150 percent.
He said that the rising fuel prices will be the biggest challenge for the industry.
"Fuel price is the largest expense that airlines have and with the 25 to 30 percent rise we have seen, it is a great challenge and great pressure for airlines," Tinseth pointed out.
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