Middle East helps Boeing meet targets
Friday 7 January 2011 7:44 AM
Dubai: US aircraft manufacturer Boeing announced on Thursday that it achieved its delivery target for 2010, with a little help from the Middle East.
The company recorded 462 commercial aircraft deliveries and received 530 net orders, meetings its company guidance of approximately 460 deliveries for the year.
At least 17 aircraft were delivered to Middle Eastern customers, Martin Bentrott, Boeing's vice-president for Middle East and Africa sales, told Gulf News last year.
The 777 led Boeing's twin-aisle programmes in 2010 with 74 deliveries and 46 net orders with the aircraft continuing to rank highly in traveller polls for efficiency and passenger comfort.
Jim Albaugh, President and CEO of Boeing Commercial Airplanes, said: "The 737 is the industry's most in-demand aircraft with 486 net orders as carriers continue to rely on its superior economics, versatility, and continuous performance enhancements."
Last year, Boeing announced a series of production rate increases throughout its product line to meet increasing demand from carriers worldwide.
Boeing said the 777 production rate would rise from five to seven per cent in mid 2011 and grow to 8.3 per month in the first quarter of 2013. However, despite the buoyant message, some analysts are warning that carriers in the Middle East could see their profit margins slashed in 2011.
Worth it
Boeing's relationship with the Middle East goes back more than 60 years. Investment in that relationship is paying off as the region is now one of the world's fastest-growing commercial aircraft markets.
John Siddharth C.P., aerospace and defence analyst at business consultancy Frost & Sullivan, said: "Airlines in the Middle East are expected to see a profit of $700 million [Dh2.5 billion] in 2010; this is primarily due to overall optimism in the sector. The Middle East accounts for about ten per cent of the international passenger market.
"However, the profit margins are expected to dip from $700 million in 2010 to $400 million in 2011. The key reasons for this reduction are intense pricing strategies, an expected rise in oil prices and an uncertain economy. A key challenge for airlines is to implement innovative methods that reduce operational costs and therefore better their profit margins."
The majority of Middle Eastern airlines — including Emirates, Etihad Airways, flydubai and Qatar Airways — have Boeing aircraft on order.
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