|
|
|
|
Boeing Commercial Airplanes CEO Jim Albaugh Interviewed By Robeel Haq {Note: Interview before Dubai Airshow 2011}
The success of international airshows, whether at Paris, Farnborough or Singapore, is traditionally measured by the value of onsite orders. While some attention is paid to exhibitor numbers, attendance levels and even the venue size, ultimately it’s all about the money – in short, the more dollars that are generated in aircraft purchases, the better. It’s hardly surprising, therefore, that airshows have somehow emerged as unlikely battlegrounds, where the likes of Boeing and Airbus compete head-to-head in securing lucrative orders from their airline customers. Most recently, with the countdown to Dubai Airshow 2011 reaching its final minutes, much has been written about potential announcements at the event, mainly focusing on cash-rich players such as Emirates, Qatar Airways and Kuwait-based leasing company ALAFCO.
Until now, the aviation industry has been somewhat divided about whether Boeing or Airbus will walk away with the larger orderbook – a debate that neither manufacturer has been willing to discuss before the five-day exhibition commences on 13th November 2011. “Let’s wait and see,” Boeing Commercial Airplanes CEO Jim Albaugh tells Aviation Business during our exclusive interview at the company’s Seattle headquarters. “We have many great customers in the Middle East and discussions are ongoing about their future requirements. The region has become a very important part of Boeing’s operations and will remain that way for years to come, especially with its location at the all-important crossroads between Asia and Europe.”
The popularity of Middle Eastern carriers has increased in tandem with their purchasing power. Even during the 2009 economic downturn, when markets in other parts of the world contracted, Middle Eastern airlines bucked the downward trend with higher passenger volumes – an achievement that continued the following year too with a 17.8 percent boost in international traffic, more than double the global average of 8.2 percent. This, in turn, led to a multitude of billion-dollar fleet investments across the region, much to the delight of Boeing’s sales team. In fact, the company’s latest market outlook has estimated that 2520 airplanes will be delivered in the Middle East over the coming 20 years, equating to a market value of US$450 billion.
“I’ve been watching how the Middle East market has developed with great interest. If you look back, Europe and the United States accounted for something like 72 percent of the global market, but another 20 years from now and that figure will be reduced to 40 percent,” continues Albaugh. “There has been a noticeable shift to other regions, such as the Middle East, and if you look at some of the airlines there, especially the big three of Emirates, Qatar Airways and Etihad, they are amongst the most innovative and aggressive players in the world right now.”
Indeed, the well-documented capacity growth of Emirates, Qatar Airways and Etihad has been unprecedented over the last decade – collectively around 23 percent each year – and Albaugh is confident that such levels will be maintained in the future too, as the large backlog of new airplanes that have been ordered by ‘the big three’ will provide a competitive advantage over their European and Asian rivals. To highlight the point, Boeing estimates that half of the 885 aircraft on order in the Middle East, including a massive 72 percent of wide-bodies, will either head to Dubai, Doha or Abu Dhabi – the respective homes of Emirates, Qatar Airways and Etihad. “It’s a testament to their growth that these carriers have become more and more involved in working with Boeing to ensure our aircraft configurations are correct,” states Albaugh.
CLICK HERE FOR PART 2 OF THE INTERVIEW
 |
Site Map
 |
 |
 |
 |
|  |
| Articles | |
| Companies | |
 |
FEATURED COMMENT
Please click here to comment on this article