The global commercial aircraft sector is expected to experience slow and stable growth during the period (2013-2023) according new the new market study on ASDReports. According to Boeing’s estimates, airline companies around the world are expected to procure approximately 34000 airplanes during 2011-2031. The commercial aircraft market grows parallel to the civil aviation markets across all the major countries and, with civil aviation improving steadily after the recent economic recession, airline companies are spending significantly to replace their aging aircraft fleets. Additionally, the expansion plans of airlines from major emerging markets in Asia-Pacific, the Middle East, and Europe has initiated a series of contracts for aircrafts of various types during the last few years. Global air traffic has also grown substantially with a surge in the number of passengers preferring air travel. These factors are therefore expected to cumulatively drive the commercial aircraft market during the forecast period.
The global airlines industry has witnessed significant structural and strategic changes during the past decade due to the constantly changing economic environment. North America, being one of the major regions for the commercial aircraft market, was one of the hardest hit during the recent economic recession. The soaring financial difficulties have caused some of the airlines to resort to mergers and acquisitions in order to survive in the industry. For example, Frontier and Midwest Airlines were merged, and Delta Airlines sold its subsidiaries, Compass and Mesaba to Trans States Holdings. A similar scenario can also be seen in European and Asia-Pacific countries, as they were also significantly affected by the recession. This consolidation in the airlines industry has opened doors for newly formed companies to expand significantly both domestically and internationally. Consequently, carriers are placing huge orders to expand their fleet size to be prepared to serve the rapidly growing consumer base.
Large manufacturers, including Boeing and Airbus, are continuously making efforts in the field of research and development in order to compete in the rigorous commercial aircraft market. Fuel is one of the biggest costs for airline companies in the present situation, where the fuel prices are volatile, and have risen explosively during the last two years. Therefore, manufacturers are currently focusing on the development of increasingly fuel efficient planes to be offered to their customers. For example, the Boeing 787 Dreamliner is supposed to save up to 20% of fuel compared to other planes of the same size or class. This has spurred interest among various major carriers to order some of these planes to strengthen their long-haul operations and achieve profits from the fuel economy.
Source: ASDReports - Market Research
Date: May 17, 2013