Boeing raises forecast for new airplane demand

LE BOURGET, France – Boeing has raised its forecast for new airplane demand, projecting the need for 41,030 new airplanes over the next 20 years valued at $6.1 trillion dollars.

The company’s annual Current Market Outlook (CMO) was released today at the Paris Air Show, with total airplane demand rising 3.6 percent over last year’s forecast.

“Passenger traffic has been very strong so far this year, and we expect to see it grow 4.7 percent each year over the next two decades,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “The market is especially hungry for single-aisle airplanes as more people start traveling by air.”

The single-aisle segment will see the most growth over the forecast, fueled by low-cost carriers and emerging markets. 29,530 new airplanes will be needed in this segment, an increase of almost 5 percent over last year.

The forecast for the widebody segment includes 9,130 airplanes, with a large wave of potential replacement demand beginning early in the next decade. With more airlines shifting to small and medium/large widebody airplanes like the 787 and 777X, the primary demand for very large airplanes going forward will be in the cargo market. Boeing projects the need for 920 new production widebody freighters over the forecast period.

The Asia market, including China, will continue to lead the way in total airplane deliveries over the next two decades. Worldwide, 57 percent of the new deliveries will be for airline growth, while 43 percent will be for replacement of older airplanes with new, more fuel efficient jets.

Boeing’s Current Market Outlook is the longest running jet forecast and regarded as the most comprehensive analysis of the aviation industry. The full report can be found here.

Okay Airways announce order for 15 737 MAX airplanes
Boeing and Okay Airways announced an order for 15 737 MAX airplanes, valued at $1.8 billion at current list prices.

The order consists of eight 737 MAX 10s and seven 737 MAX 8s. Okay Airways becomes one of the launch customers of the 737 MAX 10, the newest member of the MAX family.

The airline also signed a memorandum of understanding for five 787-9 Dreamliners as part of its long-term fleet strategy and expansion.

“We are committed to investing in our aircraft fleet in order to keep growing ahead of the market and enhancing our customers’ flying experience,” said Wang Shusheng, chairman of Okay Airways. “These new airplanes are expected to deliver extraordinary efficiency, reliability and passenger comfort in their segment market, making them very compelling for us in our fleet growth and network expansion.”

“We are very pleased to welcome Okay as a launch customer of the 737 MAX 10 and a new customer of the 787-9 Dreamliner,” said Ray Conner, Vice Chairman of The Boeing Company. “We also appreciate Okay’s reaffirmation of additional 737 MAX 8s, which represents the heart of the single-aisle market. We value our longstanding partnership and look forward to delivering these airplanes to support their ambitious growth plans.”

This order will be posted to the Boeing Orders & Deliveries website once all contingencies are cleared.

Okay Airways is headquartered in Beijing with its main hub at Tianjin Binhai International Airport. Its all-Boeing jetliner fleet includes 17 Boeing 737-800s, four Boeing 737-900ERs and one Boeing 737-300 Freighter, which serves more than 50 domestic and regional destinations.

The 737 MAX 10 will be the most profitable single-aisle airplane, offering the lowest seat costs ever. The entire 737 MAX family has been designed to offer customers exceptional performance, flexibility and efficiency, with lower per-seat costs and an extended range that will open up new destinations in the single-aisle market. The MAX 8 and 9 will be followed in 2019 by the introduction of a smaller, long-range MAX 7 and a 200-seat 737 MAX 8. The MAX 10 will be introduced in the 2020 time frame.

Like Boeing’s other 737 MAX models, the MAX 10 incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets, Boeing Sky Interior, large flight deck displays, and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

The Boeing 787 Dreamliner is a family of super-efficient airplanes with new passenger-pleasing features that bring the economics of large jet transports to the middle of the market. Since entering service in 2011, the 787 family has flown more than 167.6 million people on more than 610 unique routes around the world, saving an estimated 15.6 billion pounds of fuel.

Tibet Financial Leasing announce commitment for 20 737 MAX airplanes
Boeing and Tibet Financial Leasing signed a Memorandum of Understanding (MOU) for 20 737 MAX airplanes at the 2017 Paris Air Show. The airplanes, including 737 MAX 10 and 737 MAX 8 airplanes, are valued at approximately $2.5 billion at current list prices.

“Our intention to purchase the 737 MAX reflects the strong customer feedback we have received,” said Wang Yanjun, President of Tibet Financial Leasing. “It is natural to start our aviation leasing business with the fastest-selling airplane in Boeing history. We are confident that our customers will be satisfied with the efficiency, economics, flexibility and passenger comfort that the 737 MAX promises to deliver.”

Tibet Financial Leasing was established as the first financial leasing company in Tibet Autonomous Region in 2015, with approval from China Banking Regulatory Commission. Tibet Financial Leasing is registered in Lhasa Economic and Technological Development Zone. The existing registered equity capital of Tibet Financial Leasing is RMB 3 billion.

“We are delighted to welcome Tibet Financial Leasing as a new Boeing customer and a launch customer of the newest 737 MAX family member,” said Ihssane Mounir, senior vice president, Global Sales and Marketing, Boeing Commercial Airplanes. “As leasing companies are playing an increasingly important role in the world’s aviation sector, we are proud to support Tibet Financial Leasing’s takeoff and future expansion.”

The 737 MAX is the fastest-selling airplane in Boeing history.

Embraer marks one year of E190 operations in Japan with E190 firm order from JAL
Embraer announced at the 52nd International Paris Air Show, that it has signed an agreement with Japan Airlines for a firm order of an additional E190 after Embraer marks one year of E190 operations in Japan. Japan Airlines’ subsidiary J-AIR made its first E190 revenue flight in May 2016. J-AIR currently operates seven E190s and 17 E170s – 24 E-Jets in total, with an additional eight E-Jets on backlog. The firm order has a value of USD 50.6 million, based on 2017 list prices, and will be included in Embraer’s 2017 second-quarter backlog.

“The E190s have added value to our fleet strategy by enhancing seat capacity and dual-class products on regional routes, stimulating demand and contributing to the revitalization of regional routes,” said Tetsuya Onuki, President of J-AIR Corporation. “In our twelfth month of operations, the E190 fleet has shown a remarkable service reliability of 99.85%, enabling J-AIR to deliver on our on-time promise to customers.”

“J-AIR’s combination of E170s and E190s in its fleet has enabled the airline to sustainably develop new routes and offer better customer convenience and comfort to their customers” said Arjan Meijer, Chief Commercial Officer, Embraer Commercial Aviation. “We are proud to see how the E-Jets add value to JAL’s fleet strategy and we will continue to work hard to exceed their expectations.”

J-AIR’s E190 fleet is based at the airline’s Osaka (Itami) base and features a dual-class arrangement with 95 seats, including the well-received Class J (business class) seats, and Free Video Program services for Wi-Fi devices. J-Air’s E190s currently fly to seven routes in Japan now including service to Niigata from Osaka (Itami) and Sapporo which started from June 8 and network growth will continue to include cities like Tokyo (Haneda).

Azerbaijan Airlines announce commitment for four 787 Dreamliners
Boeing and Azerbaijan Airlines (AZAL) announced a commitment for four 787-8 Dreamliners at the 2017 Paris Air Show. The announcement, valued at $918 million at list prices, will be posted to the Boeing Orders and Deliveries website once finalized.

“The decision to order additional 787 Dreamliners represents significant growth opportunities for Azerbaijan Airlines,” said Jahangir Askerov, president of AZAL. “As one of the leading CIS carriers, we look forward to expanding our network with proven performance capabilities that the 787 provides.”

“Today’s commitment opens a new chapter in our partnership with Azerbaijan Airlines,” said Marty Bentrott, vice president of Sales, Middle East, Turkey, Russia and Central Asia, Boeing Commercial Airplanes. “We are confident that the market-leading efficiency and comfort of their new 787 Dreamliners will contribute to Azerbaijan’s fleet modernization plans and build onto their long-term success for many years to come.”

Azerbaijan Airlines is a major air carrier and one of the leaders of the aviation community of the CIS countries. Total route network of the airline is 40 destinations in 25 countries. In 2016, Azerbaijan Airlines carried over two million passengers. Azerbajjan Airlines currently operates two Boeing 787 Dreamliners as well as a fleet of Boeing 757 and 767 airplanes.

Fuji Dream Airlines orders up to six E175 to its all-Embraer fleet
Embraer announced at the 52nd International Paris Air Show, that it has signed an agreement with Japan’s Fuji Dream Airlines (FDA) for a firm order of three E175s, with purchase rights for an additional three aircraft of the same model. This brings the total potential order to an estimated value of USD 274 million, based on 2017 list prices, if all purchase rights are exercised. The firm order will be included in Embraer’s 2017 second-quarter backlog.

FDA currently operates 11 aircraft – three E170s and eight E175s. In addition, FDA has also extended the agreement for Embraer’s Flight Hour Program (Pool) for up to eight years.

“In 2009, we started our airline operations with two E170s and since then, we have expanded our network within Japan and increased our flight frequency,” said Yohei Suzuki, Chairman and CEO of Fuji Dream Airlines. “Embraer’s E-Jets have been part of this journey and its reliability and performance has been outstanding. Our careful network planning, along with the E-Jets, has enabled us to profitably expand and deliver the best service to our passengers.”

The E175s will be configured in a single-class layout with 84 seats and will be equipped with the Autoland system to perform CAT III approach and landing in limited visual conditions. The E175s feature aerodynamic enhancements such as a new wingtip and other technical improvements that have a proven track record of reducing fuel burn.

“Beyond sales, today’s announcement is also the recognition of the strong partnership that started eight years ago between Embraer and Fuji Dream Airlines,” said John Slattery, President & CEO of Embraer Commercial Aviation. “We have been working together to realize FDA’s dreams of expanding its network in Japan and bringing out the best in the E-Jets in terms of schedule reliability and reduced fuel burn achievements. We will continue to stand with Fuji Dream Airlines as they enter their next phase of growth.”

FDA and Embraer have also signed an extension of the Pool Program to cover its fleet of E170s and E175s, including these new orders. The program includes the advance exchange and repair management for more than 300 essential line replacement units of the aircraft. In 2016, FDA achieved a 12-month schedule reliability of 99.87% – one of the world’s highest among all E170 and E175 operators.

With aircraft based in Nagoya and Shizuoka, FDA operates six to eight flights daily per E-Jet to around 15 cities in Japan such as Fukuoka, Sapporo (Okadama and New Chitose) and secondary cities such as Hanamaki, Yamagata and Matsumoto. FDA’s fleet is instantly recognizable by its brightly colored aircraft, some of which are painted gold, silver, green tea, pink, yellow and purple. FDA is part of the Suzuyo Group which also owns an E-Jets full-flight simulator to provide pilot and fleet training for its staff.

Japan Investment Adviser announce commitment for 10 737 MAX 8 airplanes
Boeing and Tokyo-based Japan Investment Adviser Co., Ltd., (JIA) announced at the Paris Air Show a commitment to purchase 10 Boeing 737 MAX 8s.

The commitment, valued at $1.12 billion at current list prices, will become JIA’s first direct purchase of new airplanes. The order will be reflected on Boeing’s Orders and Deliveries website once it has been finalized.

“With its clear performance advantages, the 737 MAX will make a great addition to our single aisle aircraft assets and will diversify our operating lease portfolio,” said JIA president and CEO Naoto Shiraiwa. “We are proud to be here to deliver this message with Boeing and are convinced that the 737 MAX will provide us with a stronger competitive edge to contribute to our existing and future airline clients as an operating lessor.”

JIA is an innovative Financial Solutions Provider, who is listed on the Tokyo Stock Exchange. Its Group activities include operating a lease business that manages a fleet of around 60 aircraft worldwide through its operating lease arm, JP Lease Products & Services (JLPS). The current managed fleet includes Next Generation Boeing 737s as well as Boeing 777s. 

“We are honored to partner with Japan Investment Adviser on their first direct airplane purchase,” said Ihssane Mounir, senior vice president of Global Sales and Marketing, Boeing Commercial Airplanes. “JIA has been very successful in managing a large fleet of Boeing airplanes through JLPS and we are proud to welcome them into our 737 MAX family as our newest customer. This significant milestone will be the first of many as we look to build on our strong partnership going forward.”

CALC announce order for 50 737 MAXs
Boeing and China Aircraft Leasing Group (CALC) announced an order for 50 737 MAX airplanes at the 2017 Paris Air Show.

The agreement includes an order for 15 of the new 737 MAX 10, which was launched Monday at the show. This order is CALC’s first direct purchase from Boeing, with a value of $5.8 billion at list prices.

“We are delighted to announce this new engagement with Boeing. This large order of one of the newest and most popular aircraft will support the acceleration of CALC’s business expansion,” said Mike Poon, CEO of CALC. “Over the past decade, CALC has grown from being a market leader in China’s aircraft leasing industry to becoming one of the most important players in the global aviation market, and we are proud of the progress made to enhance and significantly sharpen our financing and placing capabilities. CALC now has a strong team in place that is looking to capture global opportunities, and we are actively expanding and diversifying our fleet portfolio to meet the varying needs of airlines customers in this dynamic market. Our strong order book is a valuable asset that is supporting our global expansion strategy, and we will continue to strengthen our future delivery pipeline in collaboration with aircraft manufacturers, among other aviation partners.”

CALC currently owns a fleet of 89 aircraft. With this new order, its outstanding order book now consists of 139 aircraft, putting the company on track to deliver a total of no less than 230 aircraft by 2023.

CALC has explored a variety of financing channels to ensure flexibility for its global expansion. In addition to its long-standing relationship with Chinese and international banks, CALC has been an active player in the bond market, having issued three batches of senior unsecured bonds in the aggregate amount of US$1.1 billion over the past 18 months. The Group has also made disposal of finance lease receivables a recurrent business, enabling it to efficiently utilize equity and debt financing arrangement.

“CALC understands what the 737 MAX will provide to airlines when it comes to economics, reliability and passenger comfort,” said Ihssane Mounir, senior vice president of Global Sales and Marketing, Boeing Commercial Airplanes. “We’re especially proud that CALC is part of the MAX 10 launch, and we’re honored that this is their first direct purchase from Boeing.”

Donghai Airlines announce selection of 10 737 MAX 10 airplanes
Boeing and Donghai Airlines announced the airline’s decision to convert 10 737 MAXs on order to 737 MAX 10s at the 2017 Paris Air Show.

The order, valued at $1.2 billion at current list prices, will be posted to the Boeing Orders & Deliveries website once all contingencies are cleared.

The Shenzhen-based carrier will join the 737 MAX 10 launch customer team as one of the first airlines in the world to introduce the newest member of the 737 MAX family.

“Donghai Airlines is honored to partner in launching the 737 MAX 10, which has increased capacity and the lowest costs ever for a single-aisle airplane,” said Mr. Wong Cho-Bau, Chairman, Donghai Airlines. “We look forward to using the new model to play an important role in enabling us to expand operations and provide outstanding value to our customers.”

Donghai Airlines started freighter operations in 2006 and expanded to offer passenger services in 2014. Donghai Airlines currently has a fleet of 15 Boeing 737-800s serving more than 35 cities across China. With an extended air-route network, the Shenzhen-based carrier plans to start international long-haul flights between 2021 and 2023 and grow its fleet to 100 airplanes by 2025.

“We are delighted to extend our relationship with Donghai Airlines, one of the fastest-growing airlines in China,” said Ihssane Mounir, senior vice president, Global Sales and Marketing, Boeing Commercial Airplanes. “The 737 MAX 10 will bring new levels of efficiency and greater in-flight experience to Donghai’s existing all-Boeing single-aisle fleet.”

Xiamen Airlines sign Memorandum of Understanding for 10 737 MAX 10 airplanes
Boeing and Xiamen Airlines announced the signing of a Memorandum of Understanding (MOU) at the 2017 Paris Air Show today for 10 737 MAX 10 airplanes, valued at $1.2 billion at list prices.

Xiamen Airlines will become one of the launch customers for the 737 MAX 10, the newest member of Boeing’s 737 MAX family.

Xiamen Airlines will work closely with Boeing and relevant stakeholders to finalize the agreement for 10 737 MAX 10 Airplanes, which requires the approval of Xiamen Airlines’ board of directors, the China Southern Airlines Company Limited’s board of directors, as well as the Chinese Government.

Xiamen Airlines is an existing 737 MAX customer and plans to use the new airplanes with their subsidiaries, including Hebei Airlines and Jiangxi Airlines.

“We are honored to have Xiamen Airlines join the new Boeing 737 MAX 10 family and be an important member of the launch customer group,” said Ihssane Mounir, senior vice president of Global Sales and Marketing, Boeing Commercial Airplanes. “The market-leading efficiency and reliability of the 737 MAX family will enable Xiamen Airlines and its subsidiaries to continue expanding both its domestic and regional networks. We are confident that the 737 MAX will complement Xiamen Airlines’ world-class fleet of all-Boeing airplanes for many years to come.”

Xiamen Airlines currently operates an all-Boeing fleet of more than 160 airplanes including nine 787 Dreamliners, 149 Next-Generation 737s and four 757 airplanes. The carrier plans to grow its operational fleet to 280 airplanes by the end of the decade and looks to expand regionally with the new 737 MAX family of airplanes.

Xiamen Airlines is a state-holding subsidiary of China Southern Airlines.

Malaysia Airlines Announce Order for 10 737 MAX 10 Airplanes
Boeing and Malaysia Airlines Berhad (Malaysia Airlines) announced an order for 10 737 MAX 10s, valued at $1.25 billion at list prices, at the Paris Air Show.

The announcement converts 10 of the national airline’s current 737 MAXs on order to the newest version of the 737 MAX family.

“We are very excited to announce our conversion of some of our 737 MAX 8s to 737 MAX 10s,” said Peter Bellew, Managing Director and Chief Executive Officer, Malaysia Airlines. “As competition and our business continue to grow, the superior efficiency and additional capacity of the 737 MAX 10 will allow us to keep differentiating ourselves and offer the best all-inclusive business and economy fares to our loyal passengers.”

Malaysia Airlines has operated almost every derivative of the 737 airplane family and currently operates more than 50 Next-Generation 737s. In 2016, the national carrier announced an order for 25 737 MAXs.

“Boeing has been a proud partner of Malaysia Airlines for more than 40 years and we are honored they are joining the 737 MAX 10 launch group,” said Ihssane Mounir, senior vice president, Global Sales and Marketing, Boeing Commercial Airplanes. “The 737 MAX 10 will be the most profitable single-aisle airplane offering the lowest seat costs ever, and will be a great complement to Malaysia Airlines’ all single-aisle fleet of 737s as they continue to add capacity to their routes.”

Vietjet improves operational efficiency with new SFCO2 agreement
Vietjet has recently signed an agreement with Safran for its SFCO2 fuel efficiency solution at the Paris Airshow 2017 held in Paris, France.

The SFCO2 service contract spans five years, starting in 2017, and covers the entire fleet of the Ho Chi Minh City-based airline. It will help Vietjet improve its operational efficiency by reducing fuel consumption and CO2 emissions. The agreement provides for operational recommendations, along with a special SFCO2 web application that enables the airline to track its progress and potential savings.

The SFCO2 solution combines the expertise of Safran Aircraft Engines, one of the world’s leading aero-engine manufacturers, with the long-standing experience of Safran Electronics and Defense in flight data analysis.

“As an important element of Vietjet’s fuel efficiency program, Safran’s SFCO2® service will enable us to meet our fuel consumption efficiency objectives so that we can combine economic and environmental friendly performance,” said Dinh Viet Phuong, Vietjet Vice President.

“We are proud of winning this contract to support Vietjet’s day-to- day performance and dynamic growth over the next five years. Our selection by Vietjet confirms the effectiveness of our SFCO2 service and provides further recognition of our global expertise in fuel efficiency solutions,” said François Planaud, Safran Vice President of Services & MRO.

Applying advanced technology and environment friendly solutions in daily operation is one of Vietjet’s top priorities. By analysing both operational and maintenance aspects, Safran’s SFCO2 service develops procedures and recommendations to address airlines’ need for greater fuel efficiency. This comprehensive solution would essentially contribute to reducing Vietjet’s fuel consumption by up to 5%. Accordingly, the fuel expense saved yearly is expected to be tens of millions of US dollars.

Ruili Airlines announce Commitment for 20 737 MAXs
Boeing and Ruili Airlines announced the signing of a Memorandum of Understanding for 20 737 MAX airplanes at the 2017 Paris Air Show.

The airplanes, valued at approximately $2.2 billion at current list prices, will be posted to the Boeing Orders & Deliveries website once all contingencies are cleared.

“We are very excited about adding more 737 MAX airplanes to our fleet,” said Xie Jinguo, General Manager, Ruili Airlines. “The 737 MAX’s promised efficiency, reliability and passenger comfort make it a very compelling airplane for us in our domestic and regional network.”

Launched in May 2014, Ruili Airlines operates a fleet of 14 Boeing 737 airplanes on 28 domestic routes with 76 daily departures. The start-up carrier plans to expand its fleet to 40 aircraft by the end of 2020.

“We have been impressed by the remarkable development of Ruili Airlines over the past three years,” said Ihssane Mounir, senior vice president, Global Sales and Marketing, Boeing Commercial Airplanes. “We are honored to continue playing an important role in Ruili’s long-term success with the addition of the 737 MAX. The airplanes will further strengthen Ruili’s network by adding more domestic and regional routes in the years to come.”