Demand for aircraft steady

Boeing does not see any impact of falling oil prices on new plane orders

Dubai — Demand for new aircraft to rejuvenate ageing fleets in the Middle East is running steady despite falling oil prices, according to Boeing Senior Vice President of International Sales Marty Bentrott.

“To date, up to this point in time, we haven’t seen any backing off from the marketplace in terms of the demand for new products and new airplanes,” he said.

“Our airline customers are acquiring airplanes for two principal reasons,” he continued. “One is to replace existing airplanes that are getting older. That’s going to have to continue.”

“The other is for growth, and growth is driven by economic expansion. If due to reduction in oil prices certain parts of the world contract economically then there could be some tapering,” he added. “But in the short term it’s not an impact.”

“Our customers are constantly encouraging us to deliver to them more value,” he said. “More value is better efficiency. The 777X is going to deliver about 20 per cent more efficiency.”Bentrott noted that the new Boeing 777X aircraft will be in service as of 2020, and that orders from Emirates and Qatar Airways will be delivered over the next decade.

“It’s going to burn less fuel, it’s going to be able to fly further, it’s going to be able to carry additional passengers,” he said. “Those are the capabilities that they (Gulf carriers) are looking for.”

Bentrott also weighed in on recent lobbying from several American airlines to renegotiate or remove Open Skies agreements with Gulf carriers whom they allege have received over $40 billion in subsidies. “We at Boeing believe that Open Skies is important for the global transportation industry,” he said.

“We believe that it’s also important for the consumer, because people need to be able to have choice. Choice about what airline they want to fly on, what services that airline offers, and where that airline flies to.” “This is all goodness for the consumer. It’s goodness for economic development,” he added.

“We believe that’s a fundamental key milestone in terms of the global aviation market.” Looking to the future, Bentrott noted that new technologies — such as 3D printing — may well change the way aircraft are designed.

“We’re very much involved in looking at the application of that technology to the design of airplane parts, components, and, essentially, the airplane,” he said. “It could allow us to become more efficient in that design process. We’re taking that very seriously.”

— bernd@khaleejtimes.com