Boeing Forecasts $70 Billion Market for Russia and the CIS

Russia and the Commonwealth of Independent States (CIS) will require 1,060 new airplanes worth about $70 billion over the next 20 years, according to Boeing's updated annual forecast for the commercial airplane market.

This year marks the first year that Boeing has published its forecast for the Russia/CIS region as part of the Current Market Outlook.

According to the report, airplanes in the Boeing 737 size range will account for 44% of all commercial jetliners delivered to Russian and CIS airlines during the next 20 years, amounting to 470 units valued at $30 billion.

11%, or 110 units at a value of $20 billion, will be twin-aisle airplanes like the Boeing 777 and 787.

43% will be smaller regional jets while airplanes of the Boeing 747 size or larger will comprise 2% of the market according to Boeing.

"We will witness significant growth in the demand for air travel as the economies of Russia and the CIS continue to expand," said Craig Jones, vice president of Sales for Russia/CIS, Boeing Commercial Airplanes.

"Both domestic and international air traffic has increased in Russia and the CIS by 36% over the last 10 years. Most indicators point toward continued economic growth for the region."

"We've already seen airlines like Aeroflot and S7 Airlines in Russia, AeroSvit in the Ukraine, Azerbaijan Airlines and Uzbekistan Airways order new single-aisle and twin-aisle airplanes this year. We can expect continued steady demand for new airplanes as airlines look to modernize and grow their fleets," Jones added.

"Liberalization of air traffic regulations, airline consolidation and the reduction or elimination of high tariffs on new airplanes could generate additional demand for new airplanes."

As air traffic increases, newer airplanes such as Boeing's Next-Generation 737, the 787 and the 747-8 Intercontinental as well as Airbus' A380 and A350X will help meet increased demand while also lowering airplane emissions compared to older aircraft.

"Today, aviation represents 2% of global emissions while contributing 8% to the world economy. It's a small percentage, but nonetheless we are committed to continuing to find ways to reduce the environmental impact of our products," Jones said.

Air traffic within Russia and the CIS is expected to grow 6% per year over the next 20 years. Traffic on transatlantic routes between Russia/CIS and North America is projected to increase 4.1% annually.

Worldwide, Boeing estimates the fleet will require 28,600 new jets by 2026 worth about $2.8 trillion.

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