Gold jewellery shoppers in Dubai usually opt for a wait-and-watch approach when prices hit record peaks
Randy Tinseth, vice-president of Marketing, Boeing Commercial Airplanes
The US plane maker also announced that the launch of the 777X — arguably the most fuel-efficient aircraft in the world — is imminent. “I can confirm that we are targeting the 777X launch for later this year and we are focusing on bringing the airplane to the market around the end of the decade,” said Randy Tinseth, vice-president of Marketing, Boeing Commercial Airplanes.
“Stay tuned” was his answer when asked if Boeing is bracing itself to clinch more 777X orders at the Dubai Airshow.
“Two years ago, we were here and signed the biggest order in our history with Emirates. It had been a very exciting time after that 777 order. So stay tuned for next week. Could be an exciting time,” Tinseth told Khaleej Times on Thursday.
Asked if “read my lips” is the name of the game, a gleeful Tinseth replied: “We are targeting the launch of the 777X this year, so you know the window is getting smaller.”
“I expect three things out of an airshow: Opportunity to meet our customers. Opportunity to work with our suppliers and, especially this year, the opportunity to highlight product capabilities.”
Asked what is holding back potential customers like Emirates after Lufthansa was convinced about the design and announced its intent to place an order for 34 777-9X, Tinseth said: “For the last several months we have been engaged with a number of airlines around the world. We have been working very hard with them to understand their requirements. We believe that -9X and -10X now have the right designs. We are working hard on our business case to make it work. And I am sure the airlines are working equally hard in their evaluation to determine whether and when to buy the aeroplane.”
Pressed further on the design specifications which the German flag carrier has agreed to and what the Dubai carrier is demanding, Tinseth said Boeing has two 777X variants to address different markets. “Those airplane are going to be the same for all our customers. We are very pleased Lufthansa has committed to the airplane.”
He refused to identify potential customers that Boeing has been in talks with on the new plane, saying: “Look at those airlines that fly the 777 today, those are the customers we are engaging on the 777X. With 1,500 777s sold till today, we hope to sell more with the new launch. It is a great plane and a great opportunity and I am sure our customer will like what they see.”
According to the Boeing Current Market Outlook, long-range, twin-aisle airplanes — such as the Boeing 777 and 787 Dreamliner — will continue to dominate the Middle East’s order books, reflecting the global network priorities and emerging alliances and partnerships of the region’s carriers.
Briefing a group of journalist ahead of the Dubai Airshow, Tinseth predicted that airlines in the Middle East will require 2,610 new airplanes, worth an estimated $550 billion, over the next 20 years.
He said that while one-third of that demand will replace today’s fleets, 66 per cent is expected to be driven by the rapid fleet expansion in the region.
“International traffic growth in the Middle East continues to outpace the rest of the world,” Tinseth said. “The Gulf region benefits from a unique geographic position that enables one-stop connectivity between Europe, Africa, Asia and Australasia. Additionally, over the last decade, we’ve seen a rise in low-cost carriers that have benefitted from a large youthful population, large migrant workforce and trends toward market liberalisation.”
Asked if China’s recent foray into planemaking would impact Boeing’s prospects in the fastest growing Chinese market, Tinseth said he would leave it to the market to decide.
“China needs around 5,000 planes in the next 20 years. They see it as a great opportunity and is looking to build new planes for that marketplace. Fundamentally, I don’t know if they will be successful. When you look at the total market there, we believe there is a place for us. We believe there is a place for Airbus. And we believe there is probably a place for one or two other competitors. The market will determine who those competitors are and when and whether they will be successful.”
According to the Boeing forecast, twin-aisle aircraft will account for more than half of the Middle East’s new airplane deliveries over the 20-year period, compared to 24 per cent globally. Single-aisle airplanes, such as the Boeing 737, will make up 47 per cent of regional deliveries through to 2032, while large airplanes such as the Boeing 747 will account for 10 per cent of forecast demand. Regional jets account for the remaining one per cent of the demand.
Globally, Boeing sees a long-term demand for 35,280 new airplanes, valued at $4.8 trillion over the next 20 years. These new airplanes will replace older, less efficient airplanes, benefiting airlines and passengers and stimulating growth in emerging markets and innovation in airline business models.
For example, Tinseth said the 777X would be the most fuel-efficient aircraft. “When we keep the 787 against comparable aircraft, we improved fuel efficiency by about 20 per cent. When we compare the 777X against the 777-300ER, we are looking at 20 per cent improvement in fuel efficiency.”
“Our first 737 first generation airplane was delivered in December 1997. Over the years we have improved that airplane by six per cent. The first 737 Max that we will deliver in 2017 will be 20 per cent more fuel efficient. So when we bring a new airplane into the market, we are focusing on 15-20 per cent improvement over the plane we are replacing. That is a big step. Twenty per cent reduction in 50 per cent of the operating cost of all airlines is a big deal,” Tinseth explained.
He said the 777X will offer flexible, 10-abreast seating to carry 350 to 400 passengers. Equipped with a larger, fourth-generation composite wing and a new advanced GE engine with Laminar Flow Nacelles, the aircraft will be a marked improvement in reducing community noise. The aircraft will also have an advanced flight deck and a new interior offering improved passenger experience, a commonality with the 787 Dreamliner.
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