The Middle East air line industry has been the fastest growing market in the world, averaging more than 12 percent for each of the past five years according to Randy Tinseth, Vice President of Marketing for Boeing Commercial Aiprlanes. Speaking at the Dubai Air Show, Tinseth provided a 2007 current market outlook and a 20 year forecast for commercial airplane demand.

He said the remarkable growth of the Middle East market is getting a boost by a strong economy, liberalization around the world, and strong trade. Also, the airlines have been able to successfully leverage their geographic position in the world to connect passengers between Europe, Asia, Africa, Oceania, and recently, the Americas. With the advent of aircraft that can serve longer routes, Middle East carriers can offer one-stop service to almost anywhere in the world.

Growth is also being driven by the region’s demographics. While typically known for its wealth and high-end passengers, which are well-served by the region’s internation carriers, the region also is home to a large number of Asian laborers who seldom fly because of the high cost. Recognizing the enormous potential of this market, four startup airlines have started in the past four years, Air Arabia, Jazeera Airways, NAS, and Sama. They already carry five percent of the region’s internal traffic.

In terms of a global forecast, Tinseth said the the number of passengers traveling over the next 20 years will increase by 4.5 percent per year, while passenger revenue per kilometer will grow by nearly 5 percent per year. He forecasts the total worldwide demand in 20 years to be 28,600 airplanes for a total investment 2.8 trillion dollars. The largest aircraft market in terms of units will be for single aisle airplanes, which carry between 100-200 passengers.

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