Global demand for new aircraft over the next two decades is forecast in the 40,000–43,000 range, signaling a major upcycle in deliveries as the fleet expands and modernizes.

Single-aisle jets will dominate this growth, with the single-aisle market projected to reach $222.20 billion by 2030 at a 12.5% CAGR, driven by airlines prioritizing fuel-efficient and environmentally friendly aircraft.

North America remains one of the largest demand centers with about 9,160–9,310 deliveries expected, underpinning sustained replacement and growth cycles in the region.

Asia-Pacific is set to be the pivotal growth engine, with China alone expected to account for roughly one-fifth of global demand and about 8,500 new aircraft over 20 years.

Regional forecasts also show the Pacific at 920 new aircraft by 2043 and a broader Asia-Pacific requirement of 17,620 aircraft by 2043 as passenger traffic rises.

South Asia leads global growth at 6.2% annually, with India driving the region’s fleet to 2,600 aircraft by 2041.

The Middle East is expected to need around 3,000 new commercial aircraft over 20 years, including significant widebody demand, reflecting strong traffic and cargo expansion.

Globally, the civil aviation fleet is projected to surpass 49,000 aircraft by 2040, with single-aisle models representing nearly 64% of the passenger fleet.

Sustainability and efficiency imperatives are central to fleet decisions, with emissions targets and fuel costs driving demand for next-generation, fuel-efficient aircraft and sustainable aviation fuels.

The SAF market is forecast to reach about USD 2.99 billion by 2027, with Asia-Pacific and Europe poised for strong growth as airlines seek decarbonization pathways.

Airlines’ focus on fuel burn and emissions reduction aligns with expectations that new aircraft will lift fleet fuel efficiency by roughly 2% annually as demand fully recovers by 2027.

Cargo remains a structural growth pillar, with an expected 2,510 cargo aircraft deliveries and the global cargo fleet rising to 3,610 by 2041, supported by e-commerce trends.

Boeing and Airbus are best positioned to capitalize on this cycle, given their product lineups, global customer bases, and deep investments in sustainable technologies.

Boeing’s long-term outlook calls for 41,170 new aircraft globally in 20 years, including approximately 8,500 in China, and the company continues to invest in advanced programs and regional initiatives.

Boeing and NASA’s $1.15 billion sustainable aircraft project underscores a push toward lower fuel consumption and emissions via new designs and technologies.

Boeing’s partnerships on SAF and climate neutrality goals, including collaborations with Masdar and a 2050 target, reinforce its sustainability roadmap.

GE Aerospace is investing in SAF testing, hybrid electric, and hydrogen combustion technologies that support the next wave of lower-emission aircraft.

United Airlines’ $100 million SAF-focused fund, which includes Boeing and GE among its partners, indicates growing airline-manufacturer-financier alignment on decarbonization.

Airbus also stands out via a comprehensive sustainability strategy, including a partnership with Neste to scale SAF and a goal to enable 100% SAF use by decade’s end.

Airbus has unveiled zero-CO2 concept aircraft and is pursuing electric and hydrogen propulsion with Rolls-Royce, aiming to revolutionize civil aviation by mid-2030s.

Airbus maintains strong momentum in China with a 55% share in the single-aisle trunk market and a deal for 292 A320neo aircraft, while Boeing’s sales there have slowed.

Airbus has delivered 47 planes to China this year versus one for Boeing, reflecting near-term market dynamics and geopolitical headwinds.

COMAC is an emerging competitor with the C919 positioned against the A320 and 737 families, supported by over 1,000 firm orders and a near-1,700 aircraft backlog.

COMAC targets ramping C919 output toward 150 aircraft annually within several years, but current production and certification constraints limit near-term global penetration.

The C919’s pricing is more than 10% cheaper than comparable Western models and production costs are lower, yet heavy reliance on Western suppliers and lack of EU/US certification cap export prospects.

COMAC could capture around 8% of China’s single-aisle market by 2030 if ramp-up and regulatory milestones are achieved, leveraging China’s large domestic demand.

Japan’s planned $33 billion investment in hydrogen-fueled aviation by 2035 points to longer-term propulsion shifts that could reshape competitive dynamics.

Regionally, North America remains a core replacement market, Asia-Pacific leads growth and fleet expansion, South Asia accelerates fastest, and the Middle East combines passenger and cargo tailwinds with widebody needs.

Fuel and sustainability trends underpin the fleet mix, with airlines prioritizing eco-efficient single-aisles and newer widebodies, driving a replacement wave of about 17,170 older aircraft by 2042.

Supply chain resilience and digitalization are strategic differentiators, with Airbus leveraging IoT and AWS to manage a 15,000-supplier network amid persistent constraints.

3D printing and connected aircraft technologies are gaining traction to improve logistics, maintenance, and real-time operations, though high integration costs remain a challenge.

On balance, Airbus and Boeing are the likely long-term winners given their scale, backlogs, and sustainability investments, with Airbus currently advantaged in China and Boeing strong in North America and poised for Middle East opportunities.

COMAC should be watched as a domestic share gainer and potential third force over time, pending certification progress, supply chain localization, and sustained production ramp-up.

Investors should also monitor cargo conversions and freighter demand, as Boeing builds global conversion capacity and the freighter fleet is set to expand materially through 2042.

Overall, the aerospace market is entering a multi-decade upgrade cycle centered on fuel efficiency, SAF adoption, and regional growth led by Asia-Pacific, with established OEMs best placed and new entrants scaling from strong home markets.

Global demand for new aircraft over the next two decades is forecast in the 40,000–43,000 range, signaling a major upcycle in deliveries as the fleet expands and modernizes.

Title:

Content: Europe ’ s airports are in chaos: what is the current state of the aviation industry?
| Economic Horizontal | DW | 22.06.2022
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Europe ’ s airports are in chaos: what is the state of the aviation industry?
The summer vacation period has begun.
However, the journey of how many people to the land of their dreams begins at the chaotic airport, from hours of queues, flight delays to temporary cancellations, frustration and trouble.
As this year ’ s International Air Show (ILA) in Berlin approaches, let ’ s take a look at the current state of the aviation industry.
Traveling in May and the first few weeks of June is enough to give an accurate sense of what the summer might be like at European airports.
In the coming weeks, passengers will need to carry one of the most necessary “baggage ”: patience.
At German airports, queues at check-in counters are getting longer and longer.
The main reason for this is that there is an acute shortage of staff in the airport services: both security personnel and baggage handlers on the tarmac.
Just recently, easyjet, a low-cost airline, announced that it would cancel thousands of flights in the coming weeks due to a lack of staff.
During the height of the pandemic, many service providers laid off staff.
The client then tends to try to find a better-paid job.
Ralph Beisel, chief executive of the German Airports Association (ADV), explained that if people want to return to work, they first have to go through a lengthy security review.
At present, the airport is short of about one-fifth of its staff.
He therefore called for the review process to be expedited so that people could be hired more quickly: “The security review cannot take eight weeks, because then the summer vacation can be over ”.
We're short of manpower.
It's not just the lack of staff on the ground.
There are also "bottlenecks" in the air.
Lufthansa, for example, will have to cancel hundreds of flights in July because of a shortage of staff.
The union feels its position has been confirmed.
"It has long been clear that radical layoffs in many sectors of the airline industry will have a negative impact on recovery," said Stefan Herth, president of Cockpit.
Finding enough pilots quickly, however, is no easy task -- globally. Heinrich Großbongardt, an aviation expert in Hamburg, points out that in the United States, regional traffic pilots are now employed on even better terms than previously thought to be the best.
As a result, labour rights are on the increase.
Lufthansa may even face a pilot strike because management intends to reduce the number of its parent company ’ s airliners and move them to a cheaper subsidiary, Eurowings, to help achieve the cost-cutting that must be done.
Lufthansa, which was battered during the pandemic, is now trying to reposition itself and hopes to offer services to passengers quickly again.
But it's difficult.
Last month, Lufthansa chairman Carsten Spohr admitted: "I have had to apologise repeatedly to our customers for weeks; I am afraid I will have to do so after the summer."
Long range, expensive fuel.
Then, there are other problems: fuel prices have skyrocketed due to the war in Ukraine; aircraft flying to the Far East have had to make a detour due to the closure of Russian airspace, which has led to a sharp increase in flight costs.
Aviation expert Gros Bangat warned that high costs could leave some airlines in trouble and lead to bankruptcies — for example, small state-owned airlines that are largely state-funded but can ’ t be truly profitable.
They are also unlikely to be sheltered by connected aviation tycoons such as Lufthansa, British Airways or Air France / KLM.
On the contrary, Lufthansa is intent on swallowing smaller airlines such as ITA Airways, the successor to Alitalia.
Grosspungart suspects that Swedish airline SAS may soon be one of the targets of the acquisition.
Berlin Mayor Franziska Giffey and Brandenburg Governor Dietmar Woidke at the Berlin International Aerospace Biennale 2022
Against this backdrop, the International Air and Space Biennale (ILA) opened on Wednesday at Berlin-Schönefeld Airport.
Due to the pandemic, the 2020 session was not held.
Due to the war in Ukraine, military aviation may be more of a concern than before.
Environmental protection will also be a major issue.
There are still huge losses this year.
This has actually given momentum to aircraft manufacturers, first Airbus and Boeing.
After all, using more fuel-efficient aircraft helps airlines meet their emissions targets.
Airbus, for example, expects that 39,000 aircraft will be needed globally by 2040 to replace older, less fuel-efficient aircraft.
Boeing estimates that annual air traffic in Europe alone will grow by 3.1% by 2040.
However, aviation expert Carlos Bongat said the forecast was too optimistic.
He believes that given the large number of problems that still exist, especially due to rising costs and rising ticket prices, it is difficult to achieve the relevant forecasts.
After two consecutive years of losses from the pandemic, the airline industry has some reason for optimism.
Willie Walsh, director-general of the International Air Transport Association (IATA), said at the Doha conference on Monday that it is fully on track to turn a profit in 2023.
However, for this year, the airline industry still expects a loss of 9.7 billion dollars.
Not a small number, of course, but much less than the two pandemic plague years of 2020 and 2021: the total losses for those two years were $138 billion and $42 billion, respectively.
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Content: The leaders of demand growth are expected to be Asian companies, mainly Chinese and Indian.
The total demand for aircraft in 2023-2042 will be 40,85 thousand units, including 32,630 thousand for narrow-body liners, 8,220 thousand for wide-body liners, Airbus predicts.
It is expected that in the next 20 years, the world ’ s airlines will replace about 17,17 thousand old aircraft with new, more energy-efficient liners.
In the future, the demand for aircraft will increasingly be determined by the need to replace the old generation, given that the aviation sector sets itself sustainable development goals, according to the Global Market Forecast 2023 review.
Demand for cargo aircraft in 2023-2042 is expected to reach 2,510 thousand units.
According to the forecast of Airbus, by 2042, the global fleet of aircraft will be 46,560 thousand, including 3,23 thousand cargo ships.
The average growth rate of passenger traffic in the world 2019-2042 will be 3.6%, freight - 3.2%, Airbus expects.
Last year, the aerospace corporation predicted total demand for aircraft in the next 20 years at 39,490 units.

Title:

Content: China surging news reported on the 15th, the United States Boeing released the 2021 version of the "Civil Aviation Market Forecast" report on the 14th, noting that basically, the global market is recovering according to the company's 2020 expectations.
The recovery in domestic air travel demand is leading the trend, with the interregional market expected to recover with the relaxation of hygiene and travel restrictions, and eventually remote international travel will return to pre-pandemic levels in 2023-2024.
In the next 20 years, the demand for new aircraft will reach 43,610, the highest in the North American market is 9,160, and the demand in China is 8,700.
The report pointed out that the economic recovery has laid the foundation for a rebound in air passenger traffic, and the future prospects for air passenger traffic will remain stable.
Looking forward to 2025, GDP will increase by more than 15% compared to 2019, and GDP per capita will increase by about 10%.
The 21-year average passenger flow growth from 2019 to 2040 is expected to be 4%, in line with last year ’ s forecast, indicating that the basic global demand for air transport has not changed.
The report predicts that due to cyclical and structural market dynamics, the future air cargo market demand is strong, and full cargo aircraft is a significant growth area, including original cargo aircraft and modified cargo aircraft are forecast to increase from the previous year.
Thanks to the growth of e-commerce and the speed and reliability of air cargo, the world cargo fleet will increase from about 2,000 in 2019 to about 3,400, and the sustainable demand for air cargo will increase the global cargo fleet by more than 70% compared to the pre-pandemic size by 2040.
Notably, the report predicts that the world will need 19,000 civilian aircraft worth $3.2 trillion in the next 10 years, and demand for more than 43,500 new aircraft worth $7.2 trillion in the 20-year period to 2040, an increase of about 500 over the previous year ’ s forecast.
Among them, as of 2040, the demand for regional jets is 2,390, single-aisle aircraft 32,660, wide-body aircraft 7670, wide-body cargo aircraft 890, and aircraft demand totals 43,610.
The North American market has the highest demand, at 9,160, and the Chinese demand is 8,700.
This demand will lead to a 3.1% annual growth in the global active fleet, with the global civil aviation fleet set to surpass 49,000 by 2040, China, Europe, North America and Asia Pacific each accounting for 20% of new aircraft deliveries, with the remaining 20% going to emerging markets.
Traffic disruptions have a significant impact on aircraft deliveries and active fleets due to the pandemic. The report anticipates that the civil aviation industry will need more than 7,500 new wide-body aircraft by 2040 to meet fleet renewal and long-term growth in demand in the remote passenger and cargo market.
These demand increased slightly from the previous year, but decreased by 8% from 2019.
At present, single-aisle aircraft account for nearly 64% of the global passenger fleet, and single-aisle aircraft account for the largest proportion of new aircraft deliveries, roughly in line with pre-pandemic forecasts, accounting for 75%, and demand for more than 32,500 aircraft over the next 20 years.
The report notes that global demand for new single-aisle aircraft is driven by the size and flexibility of single-aisle aircraft.
In the future, these new single-aisle aircraft will continue to promote the development of low-cost airlines and provide the needed alternatives for older, less efficient aircraft.
The three regional markets for the new single-aisle aircraft are Asia Pacific, Europe and North America, which account for more than 80% of global low-cost airline capacity in 2019 and throughout the forecast period.
In addition, the report predicts long-term growth in the short-haul market, especially in emerging markets, and predicts that intra-regional short-haul travel accounts for more than half of the industry ’ s total growth demand, with inbound travel alone accounting for 17% of the industry ’ s new capacity.
Historically, excursions have been spurred by improved services, such as new direct routes and lower fares through low-cost airlines.
The report predicts that the share of Asian airlines in the global market will continue to increase, with China ’ s passenger share expected to grow from 15% in 19 years to 20% in 2040, and Asia Pacific ’ s passenger share expected to grow from 18% in 19 years to 21%.
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The potential of the Chinese aircraft market after the epidemic.
According to Tang Rui, director of marketing for China at Boeing Civil Aircraft Group, global airlines will need 41,170 new aircraft in the next 20 years, and China will need 8,500 new aircraft, accounting for about a fifth of the total.
Torre noted that more than half of the world ’ s new aircraft are used to meet growth demand.
Among them, single-aisle passenger aircraft accounted for 75%, feeder jets accounted for 5%, wide-body technology accounted for 18%, and freighters accounted for 2%.
In addition, the global fleet is nearly doubling in size, with half delivered to replace older aircraft.
Earlier, according to the China News Agency, Boeing China President Sherry Carbary said in an interview that Boeing has delivered more than 2,000 aircraft to airlines and leasing companies in China.
At the same time, according to Boeing's latest Civil Aviation Market Outlook 2022, it is predicted that China's civil aviation industry will need to introduce nearly 8,500 new civil aircraft in the next 20 years.
More than $545 billion worth of civil aviation services will be needed to support the huge growth of the civil aviation fleet.
Celia also mentioned that China Aviation Manufacturing is involved in the production of all Boeing ’ s civilian aircraft models, including the 737, 747, 767, 777 and 787 Dreamliner.
At present, more than 10,000 Boeing aircraft flying around the world use Chinese-made parts and components.
Chinese civil aviation is expected to gradually recover from the epidemic.
The Civil Aviation Administration of China (CAAC) said on the 26th that CAAC will implement the flight plan for the 2022 / 23 winter and spring season from October 30, 2022 to March 25, 2023.
There are 840 international passenger flights per week, an annual increase of 105.9%.
In addition, in the first nine months of this year, the total investment of 79.85 billion yuan in infrastructure construction of the entire civil aviation industry was completed.
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Single-aisle jets will dominate this growth, with the single-aisle market projected to reach $222.20 billion by 2030 at a 12.5% CAGR, driven by airlines prioritizing fuel-efficient and environmentally friendly aircraft.

Title:

Content: Friday, 08 September 2023 05:25 GMT

Global Single-Aisle Aircraft Market Is Projected To Reach The Value Of $222.20 Billion By 2030 X Herald

(MENAFN- Ameliorate Digital Consultancy) According to the latest report by Virtue Market Research, in 2022, the Global Single-Aisle Aircraft Market was valued at USD 86.6 billion and is projected to reach a market size of USD 222.20 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 12.5%.

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A prominent long-term driver for the Single-Aisle Aircraft market is the growing global demand for air travel. Even though the COVID-19 pandemic had a severe impact on the aviation industry, the long-term trend remains robust. The demand for single-aisle aircraft is fueled by several factors, including the expansion of low-cost carriers, increasing urbanization, and rising middle-class populations in emerging economies.

The COVID-19 pandemic had an unprecedented impact on the aviation sector, leading to grounded fleets, reduced passenger demand, and financial strain on airlines. This setback prompted airlines to rethink their fleet strategies, with some deferring aircraft orders and retiring older aircraft to cut costs. Additionally, the pandemic accelerated the adoption of safety and hygiene measures in aircraft cabins, leading to increased investments in cabin air filtration and touchless technologies.

A notable short-term driver for the Single-Aisle Aircraft market is the rebound in domestic and regional air travel. As countries reopen their borders and vaccination efforts progress, there is a growing preference for shorter flights, leading to increased demand for single-aisle aircraft. Airlines are reactivating grounded aircraft and placing orders for new, fuel-efficient models to meet this surge in regional travel.

An exciting opportunity in the Single-Aisle Aircraft market is the development of next-generation, fuel-efficient aircraft. With a growing emphasis on sustainability and reducing carbon emissions, aircraft manufacturers are investing in research and development to create more eco-friendly models. This includes the use of advanced materials, aerodynamic improvements, and more efficient engines. Airlines that invest in these next-gen aircraft can not only reduce their environmental footprint but also benefit from lower operating costs in the long run.

One of the prominent trends observed in the Single-Aisle Aircraft industry is the rise of digitalization and connectivity. In-flight Wi-Fi, entertainment systems, and integrated passenger services are becoming standard features in modern single-aisle aircraft. Airlines are leveraging these trends to enhance the passenger experience and gain a competitive edge. Additionally, digitalization plays a crucial role in aircraft maintenance and operations, helping airlines optimize their fleet performance and reduce downtime.

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Segmentation Analysis:

The global Single-Aisle Aircraft Market segmentation includes:

By Type of Aircraft: Narrow-Body, Wide-Body, Regional Aircraft

Among these, the Narrow-Body aircraft category stands out as the largest segment. These aircraft are designed for short to medium-haul flights and are favored by airlines for their versatility and cost-efficiency. Narrow-Body aircraft are well-suited for both domestic and international routes, making them the preferred choice for many carriers.

In terms of growth, the Narrow-Body segment takes the lead yet again. The market for Narrow-Body aircraft is witnessing significant expansion due to the increasing demand for regional and domestic travel. Airlines are looking to replace older aircraft with more fuel-efficient and environmentally friendly Narrow-Body models, driving the growth of this segment.

By Engine Type: Turbofan, Turboprop

Among these categories, Turboprop engines are the largest segment. These engines are commonly found in regional aircraft that operate shorter routes and require a different set of performance characteristics compared to their Turbofan counterparts. Turboprop engines are known for their fuel efficiency and reliability, making them a preferred choice for regional carriers.

However, when it comes to growth, Turbofan engines take the lead. The demand for Turbofan-powered Single-Aisle Aircraft is on the rise, driven by the need for higher efficiency, reduced emissions, and greater operational range. Airlines are increasingly opting for Turbofan engines in their narrow-body aircraft to meet the growing demand for longer-haul regional and international flights.

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Regional Analysis:

The Single-Aisle Aircraft market spans across variregions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Each of these regions has its unique characteristics and influences on the market.

Asia-Pacific emerges as the largest region in this segment. This region encompasses numerfast-growing economies, a burgeoning middle class, and a robust travel and tourism industry. As a result, airlines in Asia-Pacific have been expanding their fleets to meet the increasing demand for air travel. With a foon domestic and regional routes, narrow-body aircraft have been particularly favored in this region, contributing to its leadership in the Single-Aisle Aircraft market.

In terms of growth, Europe takes the lead. Despite being a mature aviation market, Europe is experiencing a surge in demand for narrow-body aircraft, primarily due to the need for more fuel-efficient and environmentally friendly options. European airlines are increasingly looking to modernize their fleets with state-of-the-art single-aisle aircraft, thereby driving the growth of this segment in the region.

The Middle East & Africa region also shows promise in terms of growth, driven by the emergence of airlines in the Middle East as major global players. These airlines are expanding their networks and investing in modern, fuel-efficient narrow-body aircraft to meet the growing demand for long-haul travel.

North America, with its well-established aviation industry, continues to be a significant market for single-aisle aircraft. While it may not be the fastest-growing region, North America remains a stable and vital market for these aircraft, catering to both domestic and international routes.

South America, although a smaller market compared to the other regions, also contributes to the demand for single-aisle aircraft. Airlines in South America are focusing on modernizing their fleets to enhance operational efficiency and reduce emissions.

Latest Industry Developments:

  • One of the key strategies adopted by companies is a strong emphasis on fuel-efficient and environmentally friendly aircraft. With the aviation industry facing increasing pressure to reduce carbon emissions, manufacturers are investing in the development of next-generation single-aisle aircraft with improved fuel efficiency. This includes the use of advanced materials, aerodynamic design enhancements, and the incorporation of more fuel-efficient engines. Furthermore, there is a growing trend towards the electrification of aircraft systems, including electric taxiing systems and more electric aircraft architectures. These innovations aim to reduce the overall carbon footprint of single-aisle aircraft, aligning with global sustainability goals.
  • To enhance their market share, aircraft manufacturers are expanding their global reach and customer base. They are targeting emerging markets with fast-growing air travel demand, such as Asia-Pacific and the Middle East. These regions represent significant opportunities for fleet expansion, especially with narrow-body aircraft designed for short- to medium-haul routes. Another trend is fleet modernization. Airlines, particularly in mature markets like North America and Europe, are retiring older aircraft and replacing them with state-of-the-art single-aisle aircraft. This trend is driven by the need to improve operational efficiency, reduce maintenance costs, and enhance passenger comfort. Manufacturers that offer the latest technology and fuel-efficient options have a competitive advantage in this regard.
  • Connectivity and digital solutions are becoming increasingly important in the aviation industry. Airlines are seeking aircraft equipped with advanced connectivity options to enhance the passenger experience, provide in-flight entertainment, and enable seamless inteaccess. Manufacturers are responding by integrating cutting-edge connectivity solutions into their single-aisle aircraft offerings. Additionally, the use of data analytics and predictive maintenance has gained prominence. Airlines are leveraging data from their aircraft to optimize operations, reduce downtime, and lower maintenance costs. Aircraft manufacturers are incorporating these features into their products to meet the demand for data-driven solutions.

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Virtue Market Research stands at the forefront of strategic analysis, empowering businesses to navigate complex market landscapes with precision and confidence. Specializing in both syndicated and bespoke consulting services, we offer in-depth insights into the ever-evolving interplay between global demand and supply dynamics. Leveraging our expertise, businesses can identify emerging opportunities, discern critical trends, and make decisions that pave the way for future success.

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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

North America remains one of the largest demand centers with about 9,160–9,310 deliveries expected, underpinning sustained replacement and growth cycles in the region.

Title:

Content: Aircraft manufacturing giant Boeing recently released the 2022 "Civil Aviation Market Outlook" on the 18th local time.
In terms of the latest market demand forecast for the next 20 years, except for the increase in demand in North America compared to 2021, China, Europe, Latin America and other regions have decreased.
Among them, the report predicts that 9,310 will be delivered in North America from 2022 to 2041, an increase of 150 compared to the previous year.
China saw a decrease of 215 aircraft, or 2.5%, from 8,485 aircraft; Europe saw a decrease of 155 aircraft, or 1.78%, from 8,550 aircraft; and Latin America saw a decrease of 290 aircraft, or 11.46%, from 2,240 aircraft.
According to the report, the South Asian fleet continues to lead global growth at an average annual rate of 6.2%.
Led by India, the region ’ s fleet size is expected to reach more than 2,600 by 2041, nearly four times the 700 in 2019.
Southeast Asia is expected to experience the second fastest growth in the world, with its fleet expected to nearly double to 4,500 aircraft.
# South Asia # Global # Europe # Fleet # China

Asia-Pacific is set to be the pivotal growth engine, with China alone expected to account for roughly one-fifth of global demand and about 8,500 new aircraft over 20 years.

Regional forecasts also show the Pacific at 920 new aircraft by 2043 and a broader Asia-Pacific requirement of 17,620 aircraft by 2043 as passenger traffic rises.

Title:

Content: Airbus: Pacific will need 920 new aircraft in two decades - Sunrise Gate
Monday 27 February 2023 3: 14 PM Cairo Cairo 24 °
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Airbus says Pacific will need 920 new aircraft in two decades
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Published on: Monday 27 February 2023 - 2: 35 PM | Last updated on Monday 27 February 2023 - 2: 35 PM
European aerospace giant Airbus says airlines in the Pacific will need to take delivery of 920 new aircraft over the next 20 years.
This was based on a study conducted by Airbus on demand.
Airbus expects global demand to reach 39,490 new aircraft over the next two decades, including 17,620 in the wider Asia-Pacific region.
According to Airbus ’ global market outlook, demand in the Pacific will be driven by growth in passenger traffic in the region, which averages 3.2% per year.
The projected demand will be about 750 single-aisle aircraft, such as the A220 and A320 classes, and about 170 wide-body aircraft, such as the A330neo and A350, it said.
About 55 per cent of these aircraft are for growth, and 45 per cent are for replacement aircraft currently in service.
Stephen Forshaw, Airbus ’ chief representative for Australia, New Zealand and the Pacific, reviewed the study on the eve of the Avalon Air Show, which is scheduled to start tomorrow, February 28, and run until March 5, in Melbourne.
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What is Airbus' prediction of the market of aircraft in the Pacific region?

The region will need to receive 920 new aircraft over the next 20 years.

South Asia leads global growth at 6.2% annually, with India driving the region’s fleet to 2,600 aircraft by 2041.

The Middle East is expected to need around 3,000 new commercial aircraft over 20 years, including significant widebody demand, reflecting strong traffic and cargo expansion.

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$765 billion over 20 years.
Boeing says Middle East will need 3,000 commercial planes
Boeing has revealed that passenger traffic in the Middle East and commercial aviation fleet traffic in the region is expected to more than double over the next two decades as it announces its 20- year forecast for the commercial aviation market for 2022.
Airlines in the Middle East have been able to successfully deal with the challenges caused by the pandemic by
Modify its business models and increase the use of cargo planes to raise revenue.
Looking ahead, Boeing expects the region ’ s fleet to expand to 3,400 aircraft to serve fast-growing passenger traffic, as well as growing air freight demand.
Randy Haysey, Boeing Commercial Airplanes ’ Marketing Director for the Middle East, Africa, Russia and Central Asia, said: “The Middle East is gaining ground as a leading hub for international travellers, and the Middle East economy is growing to be the starting point and final destination for business, tourism and leisure travellers.
The demand in the region for a versatile fleet will continue to meet the requirements of the business model of all commercial airlines and air cargo. ”
Boeing forecasts that the Middle East will require 2,980 new aircraft, valued at $765 billion, for passenger and commercial services.
More than two-thirds of demand will enable growth in the region, while the remaining third will replace older aircraft with more fuel-efficient models such as the 737 MAX, 787 Dreamliner and 777X.
It is worth noting that air cargo operations by Middle East carriers have continued to grow substantially in recent years, with the region operating two of the world ’ s top five carriers.
To meet future demand, the Middle East ’ s cargo fleet is expected to reach 170 carriers by 2041, double the pre-pandemic fleet.
Boeing ’ s Middle East Commercial Aviation Market Report 2022 also includes the following projections through to 2041:
♪
Passenger traffic is expected to grow by 4% annually.
♪
Demand for wide-body aircraft continues with 1,290 deliveries to support the growing network of international airlines.
♪
The single-aisle aircraft market in the Middle East will more than double to 1,650 aircraft serving regional and international destinations.
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The demand for commercial after-sales services, including maintenance and repair, has reached a value of about $275 billion.
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The Boeing Pilot and Technical Report 2022 predicts that the region will need 202,000 aviation personnel, including 53,000 pilots, 50,000 technicians and 99,000 crew members, over the next 20 years.
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Globally, the civil aviation fleet is projected to surpass 49,000 aircraft by 2040, with single-aisle models representing nearly 64% of the passenger fleet.

Sustainability and efficiency imperatives are central to fleet decisions, with emissions targets and fuel costs driving demand for next-generation, fuel-efficient aircraft and sustainable aviation fuels.

Title:

Content: Global sustainable aviation fuel market size to reach USD 2987.5 million valuation by 2027

The latest business intelligence report on ‘global sustainable aviation fuel market’ presents an unbiased analysis of the industry augmentation history and forecast statistics for 2021-2027.

Pune, INDIA

Pune, India, Oct. 28, 2021 (GLOBE NEWSWIRE) -- According to credible sources, global sustainable aviation fuel market size was remunerated at USD 66 million in 2020 and is estimated to record a strong CAGR of 72.4% over 2021-2027, eventually reaching a valuation of USD 2987.5 million by the end of study period.

Proceeding further, the research literature studies the market from the perspective of fuel type, biofuel blending capacity, biofuel manufacturing technology, platform, and geographies to highlight the key areas for investment during the forecast period. Moreover, it explicates the competitive landscape on the basis of the strategies, financials, and recent developments of the leading players in this business sphere.

With increasing environmental awareness, the aviation sector is looking to reduce carbon footprints and lower GHG emissions, hence adopting alternative solutions like renewable jet fuels, hybrid-electric and all-electric aircraft, enhancing aero-engine efficiency through design adjustments, and many more.

Request Sample copy of this Report @ https://www.marketstudyreport.com/request-a-sample/4219606/

However, when compared to other solutions, adoption of sustainable aviation fuels like synthetic fuels, e-fuels, bio jet fuels, green jet fuels, and hydrogen fuels is one of the most practical alternative solutions when it comes to socio-economic benefits and contributes notably to mitigating current and future aviation environmental impacts.

Moreover, airlines across the aviation sector are extending their commercial fleets due to increase in air travel. These factors are majorly driving global sustainable aviation fuel market growth.

For instance, Gevo, Inc. and Trafigura Trading LLC, entered into a binding renewable hydrocarbon purchase and sale agreement in August 2020. Trafigura will be capable of providing SAF to both domestic as well as foreign clients, having rising demand for low-carbon jet fuel.

Geographical outlook

Analysts cite that North America is likely to serve as a lucrative growth avenue for the worldwide sustainable aviation fuel industry participants throughout the study period, as countries such as the U.S. and Canada, are focusing on various programs to use renewable aviation fuel to assist in reducing carbon footprints due to increased air traffic and flying passengers.

Commercial Aviation Alternative Fuel Initiative (CAAFI), Canada's Biojet Supply Chain Initiative, and Midwest Aviation Sustainable Biofuels Initiative (MASBI) are some of the sustainable aviation fuel efforts that are undertaken by countries including the U.S. and Canada.

Moreover, North American market is one of the robust demand areas for sustainable aviation fuel owing to supportive regulations and measures to reduce aviation emissions.

To access a sample copy or view this report in detail along with the table of contents, please click the link below:

https://www.marketstudyreport.com/reports/global-sustainable-aviation-fuel-market-size-research

Global Sustainable Aviation Fuel Market, by Fuel Type (Revenue, USD Million, 2018-2027)

  • Biofuel
  • Hydrogen Fuel
  • Power to Liquid Fuel

Global Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology (Revenue, USD Million, 2018-2027)

  • Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)
  • Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
  • Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
  • Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)
  • Alcohol to Jet SPK (ATJ-SPK)
  • Catalytic Hydrothermolysis Jet (CHJ)

Global Sustainable Aviation Fuel Market, by Biofuel Blending Capacity (Revenue, USD Million, 2018-2027)

  • Below 30%
  • 30% to 50%
  • Above 50%

Global Sustainable Aviation Fuel Market, by Platform (Revenue, USD Million, 2018-2027)

  • Commercial Aviation
  • Military Aviation
  • Business & General Aviation
  • Unmanned Aerial Vehicle

Global Sustainable Aviation Fuel Market, Regional Terrain (Revenue, USD Million, 2018-2027)

Asia Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific

Latin America

  • Mexico
  • Brazil

North America

  • U.S.
  • Canada

Europe

  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe

Rest of the World

Global Sustainable Aviation Fuel Market, Competitive Dashboard (Revenue, USD Million, 2018-2027)

  • S.G. Preston Company
  • Red Rock Biofuels LLC
  • Aemetis Inc.
  • Velocys plc
  • Fulcrum BioEnergy Inc.
  • SkyNRG BV
  • World Energy LLC
  • Eni S.p.A.
  • Gevo Inc.
  • Neste Oyj

Table of Content:

Chapter 1. Executive Summary

1.1.         Market Snapshot

1.2.         Global & Segmental Market Estimates & Forecasts, 2019-2027 (USD Million)

1.2.1.     Sustainable Aviation Fuel Market, by Region, 2019-2027 (USD Million)

1.2.2.     Sustainable Aviation Fuel Market, by Fuel Type, 2019-2027 (USD Million)

1.2.3.     Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology, 2019-2027 (USD Million)

1.2.4.     Sustainable Aviation Fuel Market, by Biofuel Blending Capacity, 2019-2027 (USD Million)

1.2.5.     Sustainable Aviation Fuel Market, by Platform, 2019-2027 (USD Million)

1.3.         Key Trends

1.4.         Estimation Methodology

1.5.         Research Assumption

Chapter 2. Global Sustainable Aviation Fuel Market Definition and Scope

2.1.         Objective of the Study

2.2.         Market Definition & Scope

2.2.1.     Scope of the Study

2.2.2.     Industry Evolution

2.3.         Years Considered for the Study

2.4.         Currency Conversion Rates

Chapter 3. Global Sustainable Aviation Fuel Market Dynamics

3.1.         Sustainable Aviation Fuel Market Impact Analysis (2019-2027)

3.1.1.     Market Drivers

3.1.1.1. Rising need for reduction in GHG emissions in aviation industry

3.1.1.2. Growing air passenger traffic

3.1.1.3. High fuel efficiency of SAF

3.1.2.     Market Challenges

3.1.2.1. Price difference between SAF and conventional jet fuel

3.1.3.     Market Opportunities

3.1.3.1. Increasing demand for SAF by airlines over the world

3.1.3.2. Sustainable marine fuel

3.1.3.3. Government initiatives

Chapter 4. Global Sustainable Aviation Fuel Market Industry Analysis

4.1.         Porter's 5 Force Model

4.1.1.     Bargaining Power of Suppliers

4.1.2.     Bargaining Power of Buyers

4.1.3.     Threat of New Entrants

4.1.4.     Threat of Substitutes

4.1.5.     Competitive Rivalry

4.1.6.     Futuristic Approach to Porter's 5 Force Model (2018-2027)

4.2.         PEST Analysis

4.2.1.     Political

4.2.2.     Economical

4.2.3.     Social

4.2.4.     Technological

4.3.         Investment Adoption Model

4.4.         Analyst Recommendation & Conclusion

Chapter 5. Global Sustainable Aviation Fuel Market, by Fuel Type

5.1.         Market Snapshot

5.2.         Global Sustainable Aviation Fuel Market by Fuel Type, Performance - Potential Analysis

5.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Fuel Type 2018-2027 (USD Million)

5.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

5.4.1.     Biofuel

5.4.2.     Hydrogen Fuel

5.4.3.     Power to Liquid Fuel

Chapter 6.vGlobal Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology,

6.1.         Market Snapshot

6.2.         Global Sustainable Aviation Fuel Market by Biofuel Manufacturing Technology, Performance-Potential Analysis

6.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Biofuel Manufacturing Technology, 2018-2027 (USD Million)

6.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

6.4.1.     Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)

6.4.2.     Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)

6.4.3.     Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)

6.4.4.     Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)

6.4.5.     Alcohol to Jet SPK (ATJ-SPK)

6.4.6.     Catalytic Hydrothermolysis Jet (CHJ)

Chapter 7. Global Sustainable Aviation Fuel Market, by Biofuel Blending Capacity,

7.1.         Market Snapshot

7.2.         Global Sustainable Aviation Fuel Market by Biofuel Blending Capacity, Performance-Potential Analysis

7.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Biofuel Blending Capacity, 2018-2027 (USD Million)

7.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

7.4.1.     Below 30%

7.4.2.     30% to 50%

7.4.3.     Above 50%

Chapter 8. Global Sustainable Aviation Fuel Market, by Platform,

8.1.         Market Snapshot

8.2.         Global Sustainable Aviation Fuel Market by Platform, Performance-Potential Analysis

8.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Platform, 2018-2027 (USD Million)

8.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

8.4.1.     Commercial Aviation

8.4.2.     Military Aviation

8.4.3.     Business & General Aviation

8.4.4.     Unmanned Aerial Vehicle

Chapter 9.   Global Sustainable Aviation Fuel Market, Regional Analysis

Related Report:

Aviation Fuel Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

Global Aviation Fuel Market is expected to exceed USD 325 billion by 2026. The rising construction and expansion of airports coupled with rising production and delivery of aircrafts are driving the market share. Latin America and Middle East & Africa will witness healthy growth in the aviation fuel market share owing to increasing tourism. Recovering economy in Latin America with cross border merger of the airliners will further fuel the industry demand. Steady growth in air traffic will positively influence the product penetration. Increasing demand of business jets in the MEA is the prime factor driving the regional growth. Few of the major players operating in the aviation fuel market include Shell, BP, Chevron, Gazprom, Reliance Petroleum, and IOCL among others. Industry players are entering into strategic agreements and partnerships for expanding their business share. For instance, in November 2019, BP signed a strategic technical services agreement with Sonangol for expanding its business in Angola.

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Title:

Content: Cirium expects 45,000 more fuel-efficient aircraft to be delivered by 2040, worth $2.9 trillion
Cirium predicts that over the next 20 years, the world will spend $2.9 trillion on about 45,000 new aircraft.
• New aircraft expected to be delivered will replace the ageing fleet to meet projected annual growth of 3.7% in air passenger traffic
Single-aisle jets are expected to account for 70% of passenger aircraft deliveries by 2040
• China is expected to top the list with a 20% share in aircraft deliveries – the region ’ s air passenger growth is expected to exceed 6%
• Around 80% of existing passenger aircraft will be retired between 2021 and 2040
Over 3,500 freighter deliveries over the next 20 years – including new freighters and modified airliners
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An estimated 45,000 aircraft worth U.S. $2.9 trillion to be delivered by 2040.
Revealed in Cirium's new Fleet Forecast.
LONDON -- The newly released 2021 Cirium Fleet Forecast shows that around 45,000 new, more fuel-efficient aircraft will be purchased globally over the next 20 years, with an estimated $2.9 trillion in aircraft purchases.
According to the Cirium Fleet Forecast released by Ascend by Cirium, a consulting firm of aviation analytics firm Cirium, global cumulative aircraft deliveries for the next 20 years will be 4% higher than predicted a year ago by 2040.
The report outlines the positive outlook for the aviation industry and its recovery from the COVID-19 pandemic.
The COVID-19 pandemic has severely affected air travel, as well as aircraft deliveries.
Global aircraft deliveries fell by 43% - or 600 aircraft - in 2020.
Aircraft deliveries recovered somewhat in 2021, but are still 25% below 2019 levels.
Air travel is reopening as global vaccination programs become more widespread, leading to an increase of 300 aircraft deliveries in 2021 — a feat achieved when Boeing 787 was found to be problematic.
Rob Morris, Global Advisory Director, Ascend by Cirium, said: “The Cirium Fleet Forecast 2021 presents an optimistic long-term outlook for the aviation industry, which will return to a more traditional growth trajectory after 2024, although structurally different from before.
Air passenger traffic is expected to grow at an annual rate of 3.7%, so the global passenger fleet will need to increase by almost 22,000 aircraft.
“If the above projections are realized, the global passenger fleet will reach the size of about 47,200 aircraft by the end of 2040. ”
The projected delivery of new aircraft will not only meet the growing demand for air transport, but will also replace older aircraft that are less fuel efficient. "
China leads in aircraft deliveries
The number of aircraft deliveries will vary depending on the region where the airline is located, and the Asian market is expected to be the growth engine.
China is expected to lead the world with more than 6% growth in air passenger traffic – also topping the list in aircraft deliveries, accounting for 20% of the world ’ s total.
China ’ s delivery figures are significantly ahead of all other Asia-Pacific countries, which together account for 22% of the total.
North American carriers are expected to account for 20 percent, while European carriers will account for 17 percent.
The Middle East is estimated to account for 7% of the share, but because the region will deliver a large number of twin-aisle aircraft, it will account for 11% in terms of aircraft value.
Latin America, which is similar to the Middle East, will also account for 7%.
Russia and the Commonwealth of Independent States (CIS) accounted for 4%, and Africa accounted for 3%.
Most of the new deliveries will be single-aisle jets
The fleet forecast report shows that over the next 20 years, single-aisle jets will account for 70% of total aircraft deliveries and 55% of total delivery value.
The total value of newly delivered single-aisle jets is $1.6 trillion.
The mainstream model will still be the 150-seat aircraft, represented by the Airbus A320neo and Boeing 737 Max 8, which will account for 50% of deliveries.
Popular models with more than 180 seats include the A321 neo and the B737 Max 10, which will have an increasing share each year and will account for 40% of deliveries over the next 20 years.
Airbus and Boeing are expected to develop a new generation of single-aisle aircraft in the early to mid-2030s.
The $1.1 trillion dual-aisle aircraft market will be dominated by the B787 and A350 models, with 250-300-seat “medium ” aircraft accounting for about 65% of the total value delivered.
The large passenger aircraft market will be contested by the A350-1000 and the B777-9.
Aircraft deliveries in regional markets are expected to reach a scale of $150 billion.
About a third of them will be turboprop aircraft, based on 70-seat models.
Starting in 2030, a larger 90-seat model will enter the market.
Future new aircraft projects in the market include the MA700 from China and an expected new line of aircraft from Embraer.
Older models will be replaced by a new generation of aircraft.
It is predicted that about 80% of current passenger aircraft will be out of passenger service between 2021 and 2040.
As the airline industry begins to focus on driving down carbon emissions and focusing on sustainability, it will become increasingly important to replace these older, more fuel-efficient aircraft with new models.
Overall, in addition to several relatively new aircraft that are being phased out earlier, around 19,000 aircraft in the global passenger fleet will be phased out by the end of 2020.
According to analysis by Ascend by Cirium, the average economic life expectancy for single-aisle aircraft is 22 years and for twin-aisle aircraft is 20 years.
The number of freighters is growing: including new freighters and refitted freighters
As the global freight industry continues to perform strongly, freighter capacity (based on available tonnage kilometres) is expected to grow by 3.3% over 2019, with a projected supply of around 3,500 freighters over the next 20 years.
Of this total, it is expected that 30 per cent will be new freighters and 70 per cent will be converted from passenger aircraft.
About 1,050 new freighters are expected to be shipped, valued at $121 billion.
More online shopping during the epidemic period has promoted the development of e-commerce, and the growth of e-commerce has promoted the conversion of airliners to freighters.
Modification projects are focused on newer models such as the A321, B737-800, A330 and B777-300ER.
The Cirium Fleet Forecast is an independent outlook report on the global commercial passenger and cargo aircraft market, based on the industry ’ s premier combination of data and years of expertise.
Click here to download the executive summary of the Cirium Fleet Forecast 2021.
About Cirium
Cirium is a company that combines powerful data and analytics services to drive the world ’ s continued growth. With decades of industry experience, Cirium provides clients with expert insights to help companies, aircraft manufacturers, airports, airlines and financial institutions make informed business decisions that shape the future of the travel industry, improve business returns and improve customer experience. RELX PLC is the world ’ s leading provider of information and data analytics to professional and commercial customers across a wide range of industries.
Shares of parent company RELX PLC are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX.
Visit cirium.com for more information or follow Cirium ’ s LinkedIn account and WeChat account, CiriumCN.
Disclaimer: The original version of this announcement is the official authorized version. The translation is for convenience only. Please refer to the original version, the original version is the only version with legal effect.
Contacts
For media inquiries, please contact:
Cirium Media Team
Rachel Humphries / June Lee
media @ Cirium.com
The PC Agency
Paul Charles / Michael Johnson / Callum McGoldrick
Cirium @ pc.agency
Contacts
For media inquiries, please contact:
Cirium Media Team
Rachel Humphries / June Lee
media @ Cirium.com
The PC Agency
Paul Charles / Michael Johnson / Callum McGoldrick
Cirium @ pc.agency

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

What is the main objective of the ReFuelEU Aviation initiative?

To increase demand and supply for sustainable aviation fuel

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

What is the main objective of the ReFuelEU Aviation initiative?

To increase demand and supply for sustainable aviation fuel

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

What is the main objective of the ReFuelEU Aviation initiative?

To increase demand and supply for sustainable aviation fuel

The SAF market is forecast to reach about USD 2.99 billion by 2027, with Asia-Pacific and Europe poised for strong growth as airlines seek decarbonization pathways.

Airlines’ focus on fuel burn and emissions reduction aligns with expectations that new aircraft will lift fleet fuel efficiency by roughly 2% annually as demand fully recovers by 2027.

Title:

Content: Oil prices
Flight tickets are flying...
Why didn ’ t prices drop due to the low price of jet fuel?
Faisal Al-Fayeq
Posted in: Last Updated:
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Demand for jet fuel has not yet returned to pre-COVID-19 levels.
The aviation sector consumes nearly 8 percent of the world ’ s refined petroleum products, or 8 million barrels per day.
The United States leads aviation fuel consumption at 1.4 million barrels per day, followed by China, which consumes about 400,000 barrels per day.
The COVID-19 pandemic crippled global air traffic, cutting fuel consumption by almost half.
Even if the pace of recovery in the international air travel industry varies from region to region, international seat capacity is currently 10 percent below 2019 levels, so a full recovery in aviation fuel demand to previous levels of 8 million barrels per day is not expected until 2027, especially as the International Air Transport Association (IATA) expects new aircraft to increase aviation fuel efficiency by about 2 percent annually, after the aviation industry witnessed a large-scale campaign. Replacement of old aircraft.
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Jet fuel prices in the United States have recently dropped to nearly $2 a gallon from about $4 a gallon a year ago, a significant drop of almost half from last year, and reached record levels of about $5 a gallon in April 2022.
The new aircraft are expected to raise aviation fuel efficiency by about 2 percent a year, after the aviation industry saw a widespread campaign to replace older aircraft.
Reuters reports that the average price of jet fuel in 2019 was $2 a gallon, meaning airlines spent $56 billion on jet fuel in 2022, up from $36 billion in 2019.
Standard & Poor ’ s Global expects global jet fuel demand to remain below 2019 levels for the time being due to a slow recovery in long-haul flights and a reduction in rising jet fuel consumption, especially in Asia.
Why didn ’ t the prices go down?
Jet fuel prices have fallen dramatically, unlike ticket prices that have kept rising.
What are the reasons?
There are several factors that contribute to this situation:
First, fuel costs represent a relatively small portion of total airline expenses and typically account for about 20 to 25 percent of total operating costs.
Therefore, lower jet fuel prices may not necessarily translate into a relative drop in ticket prices.
Second, airlines often pre-hedge their fuel purchases to protect against price fluctuations, meaning they may have stored fuel at higher rates before the current decline.
As a result, any drop in fuel prices may not directly affect the adjustment of airline profits.
The COVID-19 pandemic caused a major disruption to the aviation industry, reducing demand for air travel during 2020 and 2021, and inflicting heavy losses on airlines, at a time when the majority of global airlines had purchased new aircraft or were awaiting delivery of already funded orders.
To compensate for that loss, airlines had to take cost-cutting measures, such as reducing capacity and cancelling some flights, which resulted in ticket prices rising depending on supply and demand.
The most important factor contributing to the rise in airline ticket prices is the need for airlines to generate revenue and recover from financial losses incurred during the pandemic.
Is the aviation industry booming this summer?
Global demand for air travel after the pandemic remains marginal, and the chance of a major recovery in international air traffic this summer is fading by the day, with air travel in the United States still 22 percent below pre-pandemic levels in June, with a slight improvement in May, IATA data shows. It's a big list.
Travel and transportation are part of the economic recovery.
However, there is currently no balance between the demand for jet fuel and the actual supply, so ticket prices remain high as airlines no longer use all of their aircraft and are not fully operational.
It will also not commit to using all of its aircraft in the foreseeable future because the overall demand for air travel does not yet require it.
This may threaten the supply of jet fuel to be a victim of economic pressure and inflation, and is often seen as the product of relatively high-value jet fuel refineries, but subject to demand, so that refining is redirected to gasoline or diesel according to refinery profit margins.
The gradual rise in demand for gasoline and diesel after the pandemic has also increased incentives to operate refineries, contributing to increased jet fuel production and, consequently, higher inventory levels.
* Quote from "Magazine".
Disclaimer: All published articles represent the opinion of their authors only.
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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

Cargo remains a structural growth pillar, with an expected 2,510 cargo aircraft deliveries and the global cargo fleet rising to 3,610 by 2041, supported by e-commerce trends.

Title:

Content: Boeing cuts its forecast for commercial aircraft demand
Despite widespread concerns, demand for cargo planes remains strong
Ayman Azzam
8: 47 PM, Sunday, 17 Jul 22
Boeing has cut its forecast for commercial aircraft demand for the coming decades as deliveries are weighed down by the prospect of slowing global economic growth and uncertainty about Russia.
In its latest long-term market estimate, Boeing expects manufacturers to deliver about 41,170 new aircraft to customers through 2041.
This is a slower pace than forecast a year ago, when the company estimated 43,610 deliveries over a 20-year period to 2040 (a 5.5% decline).
Boeing also cut its forecast for annual passenger traffic growth over the next 20 years from 4% to 3.8%.
The discounted outlook sheds light on how geopolitical and economic disruptions are permanently affecting the commercial aviation industry.
Boeing ’ s rival Airbus similarly lowered its forecast for travel demand for the next two decades, citing rising energy costs as a key factor behind the decline.
Reduced demand for new aircraft
Darren Holst, Boeing ’ s vice president of commercial marketing, said his company also expects lower global economic growth until 2041 than last year ’ s forecast, which also translates into lower demand for new aircraft.
The latest forecast by the U.S. planemaker rules out any possible future deliveries to buyers from Russia, which has already been excluded from the global aviation market due to sweeping sanctions imposed by the United States and other countries following its invasion of Ukraine.
Boeing predicted last year that Russian customers would make up about 1,500 aircraft sales over the next two decades.
Holst told reporters before issuing the forecast: “Russia is not a viable market for us. ”
Demand for commercial aircraft
Despite widespread concerns, demand for cargo aircraft remains strong, with the global fleet expected to grow to 3,610 aircraft in 2041, from 2010 aircraft in 2019.
Sales of new aircraft are expected to be strong over the next decade, as airlines strengthen their fleets to meet the burgeoning demand for air travel after the coronavirus pandemic.
Based on this estimate, Boeing estimates that airlines will need 19,575 new aircraft by 2031, compared to 19,330 by 2030 as projected last year.
Holst said: “There is a huge amount of airport runways waiting for the travel industry to return to normal levels. ”

Boeing and Airbus are best positioned to capitalize on this cycle, given their product lineups, global customer bases, and deep investments in sustainable technologies.

Title:

Content: The Royal Air Force has adopted a new "zero carbon emission" training aircraft, proving that "environmentally friendly flying" is an irreversible trend.
The British Air Force will purchase a new zero-emission trainer to replace the T1 homeschooling model in the photo ｜ Photo Credit: AP / Dazhi
What we want you to know is
Lieutenant General Turner, deputy commander of the Royal Air Force, said in an online forum that a new zero-emission trainer would be purchased to replace the current T1 tutor, Turner also said that the Royal Air Force would change the grass around the runway to moss, because moss has 800 times the carbon sequestration capacity of ordinary plants, which can effectively reduce the environmental pollution caused by aircraft take-off and landing.
Due to the impact of the new coronavirus, Farnborough International Airshow, which was supposed to be held in the UK last year, was cancelled and replaced with the online version of FIA Connect.
Originally held every two years, the Farnborough Airshow, perhaps because the launch of the Internet version of the cost of the physical air show is much cheaper, but by the launch of a FIA Connect in July this year, it has become a year, for aviation fans also known as the blessing of the disaster.
The main reason for the launch of FIA Connect for two consecutive years is that the aviation market has not completely disappeared despite a sharp decline in the impact of the virus.
Always keep a platform where aircraft or aviation peripherals can continue to deal with buyers.
Coupled with the signs of improvement in the epidemic this year, the organizers made the decision to hold another FIA Connect in order to help sellers and buyers prepare for the return of the physical air show next year.
But around the theme of this air show, we know that a trend in aviation that began before the epidemic is still developing, and it is not affected by the virus.
At this year ’ s FIA Connect, almost all exhibitors revolve around one theme: how to make flying more environmentally friendly.
Boeing, Airbus, GE, Safran, Rolls-Royce and Raytheon, whether from the United States or Europe, make aircraft, engines, or other components.
The most eye-popping is Lieutenant General Andrew Turner, deputy commander of the Royal Air Force, who pointed out in an online forum on the 13th that the Royal Air Force will purchase a new zero-emission trainer.
In addition to researching a new zero-emission junior trainer to replace the existing T1 Grob Tutor, Turner said the RAF would change the grass around the runway to moss because moss has 800 times more carbon sequestration than ordinary plants, which can effectively reduce the environmental pollution caused by aircraft take-off and landing.
In addition, moss is less attractive to birds than weeds and other plants, which can save the labor and financial resources of British Royal Air Force officers and soldiers in weeding, and is less likely to attract birds to the base.
It is no longer necessary for officers and soldiers to expel, capture and even kill birds for flight safety, and can achieve a more harmonious balance with nature.
Why is the military involved in this environmental movement?
On this point, we still want to start with the point that the aviation industry brings pollution to the environment.
(The Royal Air Force's T1 tutor, Grob Tutor)
Environmental issues that come with flying
The negative impact of the aviation industry on nature comes first from the carbon dioxide emitted by aircraft engines during flight, and excessive carbon dioxide emissions are the main cause of global warming.
Although the carbon dioxide emitted by aircraft accounts for only 3.5% of the total CO2 emissions, as aviation technology continues to evolve, the pollution caused by aircraft to the environment has increased.
From 1940 to 2018, the proportion increased from 0.7% to 2.65%.
According to research from Europe, the CO2 emissions from the aviation industry accumulated to 1 billion tonnes in 2018, with airlines in the United States accounting for more CO2 emissions than more than a dozen other countries combined.
Considering that only 1% of the world ’ s population has flown, environmentally-conscious Europeans have had to target the United States and the aviation industry. The increase in fuel efficiency of jet aircraft has led to a significant reduction in ticket prices, but the problem of carbon dioxide emissions has not been solved.
So before the virus broke out, Greta Thunburg, an environmental girl from Sweden, launched a “No Fly ” campaign, calling on Europeans to reduce their CO2 emissions by travelling by train or other means of land or sea transport.
Considering that transportation in continental Europe and even Eurasia can easily be completed by rail, this movement will cause a lot of damage to the United States, which is isolated from the old continent by the Atlantic and Pacific Oceans.
Not to mention, although the aviation industry originated in the United States, it is not only the United States that is engaged in the aviation industry.
Today, when the 737 Max was grounded and Airbus passenger aircraft sales gradually surpassed Boeing ’ s, the “no fly ” campaign has hurt the European industry no less than the United States.
This has prompted both Boeing and Airbus to invest heavily in developing more environmentally friendly aircraft.
For example, the Boeing 737 Max mentioned earlier has reduced carbon dioxide emissions by 20% compared to the classic 737 aircraft.
The 737 Max is also only responsible for short- and medium-haul, single-aisle narrow-body aircraft on short and medium-haul routes.
In addition, the 787 double-aisle wide-body aircraft launched by Boeing also emit 20% less carbon than the earlier 777 aircraft.
It is worth noting that the four-engine 747 Big Mac, which has been flying for more than half a century, is also due to the fact that the twin-engine 777 emits far less than the 747.
Just from the development of Boeing aircraft launched in recent years, it can be seen that the civil aviation industry is paying more and more attention to environmentally friendly flying.
The EU ’ s 2050 “carbon neutral ” target
Europe, which has always been more left-leaning than the United States, attaches more importance to environmental protection than the United States, and European Airbus is no exception.
Whether it ’ s the two-aisle A350XWB, or the single-aisle A318neo, A319neo, and A320neo, all seek to reduce CO2 emissions by 20% to 25% compared to the previous generation.
In September last year, after the outbreak of the new coronavirus crisis, Airbus was one step ahead of Boeing in the launch of three zero-CO2 concept aircraft, hoping to bring revolutionary changes to the civil aviation ecology.
It can be seen that although the outbreak of the virus has seriously frustrated the global travel industry, how to make flying more environmentally friendly is always a problem that European and American aviation giants cannot avoid.
In fact, the outbreak of the virus may also strengthen the international community's attention to environmental protection, because we are not only one planet, everyone has only one body.
The health of the human body is as important as the health of the planet in the eyes of advanced countries in Europe and the United States.
With the birth of vaccines and the gradual recovery of the civil aviation industry, the EU 27 countries decided to promulgate new policies to ensure that future flights are more environmentally friendly.
Under the Paris Agreement, adopted in 2015, world leaders may be able to keep the earth ’ s temperature below 2 degrees Celsius by the end of the 21st century.
To achieve this goal, the world must achieve carbon-neutral, net-zero emissions of carbon dioxide, by 2050.
Compared to the United States, which withdrew and then returned to the Paris Agreement, the European Union has always positioned itself as the urgent vanguard of the global environmental movement.
On 14 July this year, the European Commission launched 12 climate change plans, including a tax on aviation kerosene, with the aim of reducing emissions by 55% by 2030 and returning to 1990 levels.
Carbon neutrality is the use of afforestation or carbon capture technology to bury carbon dioxide produced by aircraft, cars or other industries underground.
This has been mentioned earlier by Deputy Commander Turner to ensure the environmental protection of the airport perimeter by planting moss.
Today, the Royal Air Force announced that it will develop a primary trainer to reduce carbon dioxide emissions, which is also a major breakthrough for the development of military aviation worldwide.
The author cannot confirm whether the Tempest, the sixth generation fighter currently being developed in the UK, will also develop in this direction, and there are no plans for the US Air Force, Navy or Marine Corps to follow up, but the Royal Air Force is enough to prove that environmentally friendly flying is an irreversible trend.
Geopolitics in Environmental Flight
After President Joe Biden announced the United States ’ return to the Paris Agreement, I believe that Boeing, like Airbus, will become more involved in the aviation industry ’ s environmental movement.
Only by fully engaging in the aviation zero pollution campaign can the United States avoid the isolation of its European allies in the future world and prevent Airbus from dominating the entire civil aviation market.
Airbus ’ three concept aircraft are expected to arrive in 2035.
The addition of Boeing will further outline the blueprint for human civil aviation for the next 20 years.
However, the United States will not be the only country affected by this trend, and the other two countries that are fully committed to entering the civil aviation market, namely, China and Russia, will face major challenges.
The development of civil aviation between China and Russia has long been left behind by the United States and Europe.
Russia has technology and no money, and China has money and no technology.
Until 2015, Beijing and Moscow decided to jointly launch a two-aisle wide-body aircraft to challenge the civil aviation hegemony of Boeing and Airbus.
Subsequently, engine technology was provided in Moscow and funding from Beijing led to the birth of the CR929, which is expected to enter the market in 2025.
However, 10 years after the CR929 entered the market, the European and American aircraft industry is entering the era of zero emissions.
Technology has already lagged behind the United States and Europe, China and Russia, can catch this new era of trains, so that their products more popular with airlines, I am deeply doubtful.
In particular, if the zero-emission aircraft is finally successfully launched by the two largest civil aviation leaders in Europe and the United States, it may make the CR929 more crowded in the market.
In European countries that attach importance to environmental issues, there will be considerable resistance.
In a short period of time, neither China nor Russia has been able to achieve a technological breakthrough on the issue of carbon dioxide emissions.
Even reaching the 787, 777X and A350XWB levels may depend on technical assistance from European and American countries.
This development is bound to further widen the gap between the CCP and Russia in the development of civil aviation and the West.
China and Russia ’ s only countermeasure may be to give up the undesirable investment in passenger aircraft such as the CR929 or C919 and fully develop high-speed railways.
Together with Samberg ’ s “Refuse to Fly ” movement, the development trend of land and air power confrontation has been formed.
The confrontation between the two kinds of thinking will not only reflect the development of military technology, but also show how people choose to travel.
Extended reading
Editor-in-Chief: Peng Chen-hsuan
Editor ： Weng Shihang
Tags:

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

Boeing’s long-term outlook calls for 41,170 new aircraft globally in 20 years, including approximately 8,500 in China, and the company continues to invest in advanced programs and regional initiatives.

Boeing and NASA’s $1.15 billion sustainable aircraft project underscores a push toward lower fuel consumption and emissions via new designs and technologies.

Title:

Content: Friday 20 January 2023 Abu Dhabi UAE
Prayer times
News Highlights
Today 's Issue
Today 's Issue
Dunya
NASA and Boeing are developing a sustainable aircraft.
NASA and Boeing are developing a sustainable aircraft.
January 20, 2023 01: 54
Washington (dpa)
NASA and Boeing are planning to collaborate on a new passenger jet that is less fuel-efficient and emissions-producing.
NASA Administrator Bill Nelson said: “From the very beginning, NASA is with you when you fly.
NASA has the courage to fly farther, faster and higher.
In doing so, NASA is making aviation more sustainable and dependable.
It ’ s part of our core. ”
Over a seven-year period, NASA will invest $425 million to produce and test a complete prototype of the new aircraft, with Boeing and its partners contributing the remaining $725 million in project funding.
All rights reserved to Al Ittihad Newspaper 2023 ©

What does NASA want to do with Boeing in aviation industy?

It wants to build, test, and fly a single-aisle aircraft to reduce emissions before the end of the decade.

Boeing’s partnerships on SAF and climate neutrality goals, including collaborations with Masdar and a 2050 target, reinforce its sustainability roadmap.

Title:

Content: Masdar and Boeing join forces to support sustainable aviation fuel development
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Abu Dhabi Future Energy Company (Masdar) has signed a Memorandum of Understanding (MoU) with Boeing to support the development of a sustainable aviation fuel sector in the UAE and globally, contributing to efforts to achieve climate neutrality for the commercial aviation sector by 2050.
The MoU was signed by Mohamed Abdulkader Al Ramahi, CEO of Masdar ’ s Green Hydrogen Department, and Colgate Gata Aura, President of Boeing Middle East, Turkey and Africa, on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023.
Masdar and Boeing will work together to promote and support the development and adoption of sustainable aviation fuel policies in the UAE and beyond.
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Title:

Content: • Agreement between the two leading companies to support the development of sustainable aviation fuel and explore accounting mechanisms for the sustainable aviation fuel sector
• The agreement comes ahead of COP28 and reflects Masdar and Boeing ’ s commitment to building international partnerships to support climate neutrality for commercial aviation by 2050
Abu Dhabi, United Arab Emirates: Masdar, one of the world ’ s leading renewable energy companies and a global leader in green hydrogen, has signed a Memorandum of Understanding (MoU) with Boeing, the world ’ s leading aerospace company, to support the development of sustainable aviation fuels in the UAE and the world.
The MoU was signed by Mohamed Abdulkader Al Ramahi, CEO of Masdar ’ s Green Hydrogen Department, and Colgate Gata Aura, Boeing ’ s President for the Middle East, Turkey and Africa, on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023.
Masdar and Boeing will work together to promote and support the development and adoption of sustainable aviation fuel policies in the UAE and beyond.
The two companies will also explore ways to develop accounting principles for the sustainable aviation fuel sector, which will enable the sector to overcome geographical barriers as it expands.
Sustainable jet fuel is produced from sustainable sources such as green hydrogen and can reduce carbon emissions over the fuel lifecycle by up to 85% compared to petroleum-based aircraft.
Sustainable aviation fuel is now widely accepted as a direct replacement for 50% of the conventional fuel used in current aircraft, and is the most carbon-reducing fuel in the next 30 years in all fields of aviation.
Mohamed Abdelkader Al Ramahi, Chief Executive Officer of Masdar ’ s Green Hydrogen Department, said: “Achieving the climate neutrality goals by 2050 depends on strengthening partnerships at the international level and supporting innovation.
As a leading UAE company in the field of clean energy, Masdar is proud to partner with leading aerospace company Boeing to support the development of sustainable aviation fuel projects, and together we will support the development of policies to advance this vital sector.
As the UAE prepares to host COP28, we will continue to harness our knowledge, expertise and tireless efforts to support businesses to build a more sustainable future for all. ”
Colgate Gata Aura, President, Middle East, Turkey and Africa, Boeing, said: “We look forward to working with Masdar to play a leading role in the development of sustainable aviation fuel locally and globally, creating new jobs, supporting economic development and creating significant business opportunities.
Reliance on sustainable jet fuel will be the most effective way to decarbonize the sector.
Boeing and the UAE have been collaborating for more than a decade on sustainable aviation, and we share the same goal of achieving climate neutrality by 2050. ”
Earlier this year, during Abu Dhabi Sustainability Week, Masdar announced that its initiative focused on the use of green hydrogen in the production of sustainable aviation fuel is working to obtain the necessary licenses to certify a new route for the production of sustainable aviation fuel from methanol.
# Company Data
- Done.

GE Aerospace is investing in SAF testing, hybrid electric, and hydrogen combustion technologies that support the next wave of lower-emission aircraft.

Title:

Content: Aviation industry calls for accelerated support to achieve zero emissions by 2050
The survey showed that participants are unanimous in achieving and investing in sustainability
Praying for Mahmood
3: 23 PM, Thursday, 15 Jun 23
GE Aerospace has conducted a survey of 325 aviation decision-makers from six countries, including the UAE, as the aviation sector prepares to participate in the Paris Air Show next week and the Dubai Airshow next November.
The survey showed a consensus on achieving and investing in sustainability, while stressing the need to accelerate support to reach the sector ’ s overall goal of net zero emissions by 2050.
The survey, conducted by French pollster Ipsos on behalf of GE Aerospace, also showed that the vast majority of companies said they were translating their sustainability strategies into reality, with 76% of respondents believing that sustainability has radically changed the way they work in the aviation industry, and the majority of those committed to sustainability strategies indicated that their companies ’ investments in sustainability will grow or remain constant despite rising inflation and recession risks.
Almost a third of respondents (30%) considered achieving the aviation sustainability goal the biggest challenge today, surpassing supply chain (19%) and business problems (11%), reflecting the industry ’ s strong drive for sustainability, and its companies and various organizations to reach net zero carbon emissions by 2050.
The majority (88%) also reported that their companies are actually implementing sustainability strategies, and most said that these strategies have significantly or moderately affected their company ’ s work (74%), their investment (73%), and their employment policy (62%).
Allen Paxson, vice president and general manager of commercial program strategy at GE Aerospace, said the survey results demonstrate the aviation industry ’ s commitment to achieving its goal of net carbon emissions by 2050 and the need for the industry to quickly receive the necessary support from various stakeholders to reach this goal.
Together with our industry partners responsible for operating three quarters of the world ’ s flights, we understand our responsibility to address the challenges facing the aviation industry in more sustainable and efficient ways to meet the requirements of our customers. ”
While 46% of respondents said the aviation sector would achieve its goal of net zero carbon emissions by 2050, 32% said it would not, and 22% questioned the possibility of this happening.
On average, respondents said the aviation industry would meet its target by 2055 due to significant hurdles of rising costs, budget pressure, supply chain problems and energy resources.
29% of respondents chose the government as the external group exerting the most pressure to accelerate sustainability, with 61% showing a preference for incentive and policy support approaches over mandates and regulations.
The most important task for the government to achieve the 2050 target is to boost investment in sustainable jet fuel, survey respondents said.
GE Aerospace began testing sustainable aviation fuel in 2007, and today, all engines produced by the company and its partners can be powered using certified sustainable aviation fuel blends.
The company and its customers and partners are developing more efficient equipment, investing $2 billion in aviation research and development in 2022.
CFM International, a joint venture between GE and Safran aircraft engines equally, aims to reduce fuel consumption and emissions by 20% in one generation compared to existing aircraft engines, through its revolutionary Sustainable Engines Innovation Program (CFMRise).
GE Aerospace is collaborating with NASA and Boeing to develop a megawatt hybrid electric powertrain as part of its Electrified Powertrain Flight Demonstration project.
CFM International is also planning to develop a hydrogen combustion engine for ground and air tests using Airbus aircraft.
Praying for Mahmood
3: 23 PM, Thursday, 15 Jun 23

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

United Airlines’ $100 million SAF-focused fund, which includes Boeing and GE among its partners, indicates growing airline-manufacturer-financier alignment on decarbonization.

Title:

Content: ECONOMY
$100 million fund to finance sustainable jet fuel development
Thank you for reading the news of a fund with a capital of 100 million dollars to finance the development of sustainable aviation fuel and we assure you that we always seek to satisfy you and now with the details
United Airlines Holdings has launched a $100 million investment fund to invest in startups working on research and development of new sustainable jet fuel.
Bloomberg news agency reported that companies such as aircraft maker Boeing and U.S. investment bank JP Morgan Chase will contribute to the fund, called United Airlines Ventures Sustained Flight Fund.
Also contributing to the fund are Air Canada and Honeywell International GE Aerospace, a subsidiary of the US General Electric Group.
United Airlines said in a statement: "The fund is open to contributions from other companies.
Sustainable jet fuel is one of the most effective ways to reduce the carbon emissions of the air transport industry, but it cannot currently be produced in large enough quantities or at an acceptable cost.
Airlines are investing in sustainable fuel production projects from various components such as livestock waste and crop residues, as well as alternatives such as electric motors and hydrogen-powered engines.
In November, low-cost airline EasyJet and Rolls-Royce Civil Aviation, Energy and Defence Systems Holdings announced the commissioning of a hydrogen-powered experimental aircraft, the first of its kind in the world.
The companies claimed that the ground test was a major step towards proving that hydrogen is heading aggressively for carbon-free aviation fuel.
The test was conducted at the Ministry of Defence's Boscombe Down site in Amsprey, England.
EasyJet and Rolls-Royce formed a partnership in July to show that hydrogen could be used in a range of aircraft from mid-2030 onwards.
This was the details of the news fund with a capital of $100 million to finance the development of sustainable aviation fuel for today. We hope that we have succeeded by giving you the full details and information and to follow all our news you can subscribe to the alert system or to one of our different systems to provide you with all the new.
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Content: United Airlines, along with founding partners such as Air Canada, Boeing, GE, JP Morgan and industry group Honeywell International, will invest in the United Airlines Venture Capital Sustainable Flight Fund.
United said companies from all walks of life could invest in the fund, which would give priority to new technologies and “successful ” producers.
The United States passed the Inflation Reduction Act last year, prompting United Airlines to accelerate the establishment of the fund.
The main reason is that the bill provides tax relief for SAF to reduce the price gap between this fuel and conventional fuels.
Aviation accounts for about 2% of the world ’ s carbon emissions, but it faces difficulties in reducing carbon emissions because electric and hydrogen-powered aircraft technologies are not yet mature.
This has prompted airlines and aerospace giants to turn their hopes to SAF, which is made from raw materials such as cooking oil and animal manure, but costs two to five times as much as conventional fuels.
# Global # United # Sustainable # SAF # Fuel

What is United Airlines doing for the development of sustainable aviation fuel?

It has launched a $100 million venture capital fund to invest in startups working on the research and development.

What is United Airlines doing for the development of sustainable aviation fuel?

It has launched a $100 million venture capital fund to invest in startups working on the research and development.

Airbus also stands out via a comprehensive sustainability strategy, including a partnership with Neste to scale SAF and a goal to enable 100% SAF use by decade’s end.

Title:

Content: autoevolution
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Airbus Partners With the Biggest SAF Producer to Ramp Up Sustainable Fuel Availability

Although they’re working on pioneering electric and hydrogen-based propulsion solutions, the biggest players in the aviation industry, such as Airbus and Rolls-Royce, are perfectly aware that that’s going to take a long time. Aviation is one of the most difficult transportation sectors to decarbonize. In the meantime, SAF (Sustainable Aviation Fuel) can effectively act as the best temporary solution, as long as its production is scaled up all over the world.
7 photos
Neste is turning out to be one of the most important names when it comes to SAF. It claims to be the world’s largest producer, gearing up to increase its capacity even more, aiming for 5.5 million tons per year, starting 2023.

It will do so by extending its presence. New facilities will start operating in Singapore and California, in addition the ones in Europe. This will also make Neste one of the few SAF producers with operations on three continents.

In addition to that, it has recently partnered with two aviation giants, Rolls-Royce and Airbus. Last month, Rolls-Royce announced that it will start working with Neste on the implementation of SAF for diesel engines. This collaboration isn’t limited to aviation, but extends to rail and construction work as well.

Following that, Airbus recently made a similar announcement, confirming that it has also partnered with the Finnish company.

That’s because low availability is still one of the main challenges in the wide-scale adoption of this alternative fuel, according to Airbus. Plus, current aircraft are only certified to operate on 50% SAF, so there’s work to be done in order to reach a full 100%. Airbus hopes to achieve this by the end of this decade.

Neste was also linked to one of the most important milestones for the use of SAF. Earlier this year, a Malaysia Airlines Boeing 737-800 completed the world’s first passenger flight powered by SAF, which was provided by Neste.

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What is Airbus doing to achieve sustainable aviation?

It is investing in sustainable aviation fuel production projects.

It is working on adopting innovative strategies.

Airbus has unveiled zero-CO2 concept aircraft and is pursuing electric and hydrogen propulsion with Rolls-Royce, aiming to revolutionize civil aviation by mid-2030s.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

Which manufacturer is going to test hydrogen engine for aircraft?

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

Which manufacturer is going to test hydrogen engine for aircraft?

Airbus maintains strong momentum in China with a 55% share in the single-aisle trunk market and a deal for 292 A320neo aircraft, while Boeing’s sales there have slowed.

Title:

Content: China signs 292 Airbus planes for US lemons
Author: Lu I
Published: Updated:
In the atmosphere of celebrating the 25th anniversary of Hong Kong ’ s return to China, an important piece of news is overlooked, but its significance cannot be underestimated. On July 1, China ’ s three major aviation groups announced an agreement with Airbus to purchase a total of 292 A320NEO series aircraft from Airbus at a total price of more than RMB 240 billion (China Southern, China Airlines and China Eastern respectively purchase 96, 100 aircraft from Airbus). A320NEO series aircraft, the basic price is about 12.248 billion US dollars, 12.213 billion US dollars, 12.796 billion US dollars).
This is the first time in nearly three years that China ’ s civil aviation industry has announced such a large number of aircraft orders.
This is also China's second major purchase of jet commercial aircraft since China Aviation Equipment Group signed a purchase agreement involving 300 aircraft with Airbus in France in 2019.
At that time, China purchased 290 A320 series and 10 A350 series models.
All orders are for the A320 series.
According to data released by Airbus and Cirium, the aviation data analysis agency, as of May this year, Airbus had a total of 1,771 single-aisle trunk aircraft operated by mainland Chinese airlines, accounting for 55% of the market in this category.
After World War II, aviation giants such as Boeing in the United States have always occupied an overwhelming position in the global commercial aircraft market, and commercial aircraft in European countries cannot withstand the pressure of competition from the United States and once succumbed to defeat.
Now in the Chinese market, Airbus and Boeing ’ s most critical market, the two differ, and it is clear that Boeing has been in a decline.
And it ’ s not as simple as the economy on the surface.
Boeing "Lemon"
Boeing expressed disappointment over the order of 292 Airbus aircraft by Chinese airlines, saying that "constructive dialogue" between European governments and Beijing had led to this major acquisition, and urged the U.S. and Chinese governments to engage in productive discussions.
Boeing said in an emailed statement: “As the largest U.S. exporter with a 50-year relationship with the Chinese aviation industry, it is disappointing that geopolitical differences continue to limit U.S. aircraft exports. ”
Boeing ’ s sales to China have historically supported tens of thousands of jobs in the United States, and we expect to quickly resume orders and deliveries. ”
Boeing has historically regarded a Chinese airline as its biggest customer, but its operations in China have slowed after two crashes of its best-selling 737 Max model and heightened political tensions between the United States and China.
In May, China Southern removed more than 100 Boeing 737 Max aircraft from its recent fleet plan due to delivery uncertainty.
So far this year, Boeing has delivered just one commercial aircraft to China, while Airbus has delivered 47.
And a few days ago, an article on the US politico website used to smear Airbus to make an excuse for Boeing ’ s declining share in the Chinese market.
The title of the article is “Report says that EU Airbus has deep ties with China ’ s military-industrial complex ” and that while Boeing ’ s aircraft sales in China have been hit by the U.S.-China trade war under former US President Donald Trump, Airbus has had greater success in China.
The US media is full of "envy and jealousy" for the development of Airbus in China, which is completely unreasonable speculation.
Product performance and other factors are an important basis for Chinese airlines to choose to cooperate with Airbus. The United States does not reflect on Boeing's aircraft performance, safety and other problems, and blindly from the geopolitical point of view to speculate between China and Europe civil aviation procurement cooperation, it is simply unable to solve its own decline in the Chinese market share of the real dilemma.
Airbus is very attentive in China.
China has long been a key market for Airbus and its U.S. rival, Boeing, as both companies struggle to expand their presence in China.
Since the Max grounding, Airbus has come a long way ahead of Boeing in competing for passenger orders and market share.
Airbus said that as of the end of May 2022, the total number of active Airbus fleet owned by Chinese airlines exceeded 2,070.
This includes not only jet aircraft, but also a variety of products such as helicopters.
By the end of 2018, the number of Airbus civilian aircraft in service in China had exceeded 1,700, and the total number of aircraft delivered to China accounted for nearly a quarter of Airbus ’ total deliveries.
Air Passenger official website announced that it has obtained a large order in China. (File picture)
It ’ s worth noting that since entering the Chinese market in the mid-1980s, Airbus has been localized like several other multinationals.
According to the official website of Airbus, Airbus civilian aircraft in China, including joint ventures located in various parts of the country, have more than 1,900 employees.
Among them, many employees work at the A320 series aircraft assembly line in Tianjin, China.
This assembly line opened in 2008. In October 2020, the 500th aircraft produced by this assembly line was delivered to customers. In 2017, the new A330 aircraft completion and delivery center opened in Tianjin, China.
Located on the same campus as the A320 Series Asia Terminal and the Airbus Tianjin Delivery Center, the center is Airbus ’ first wide-body aircraft completion and delivery center outside Europe and is responsible for cabin installation, painting, flight testing, customer acceptance and delivery of the A330 aircraft.
It is particularly worth mentioning that the A320NEO series aircraft purchased this time, from a product performance perspective, the A320neo series integrates new technologies such as a new generation of engines, which can reduce fuel consumption by 20% and significantly reduce the cost of airlines.
To meet growing orders, Airbus is pushing ahead with plans to increase production of its best-selling A320 series aircraft to 75 per month by 2025.
In addition, in November 2017, the Airbus China Innovation Center was located in Shenzhen, China, with the intention of accelerating innovation in the aviation sector by leveraging Shenzhen ’ s global competitive advantages in technology research and development, industrialization, and international expansion.
In 2019, Airbus and China signed a Memorandum of Understanding on Further Industrial Cooperation, marking the continued strengthening of the long-term partnership between Airbus and China.
Recently, on June 24, 2022, Airbus China R & D Center signed a contract to settle in Suzhou Industrial Park.
Airbus is committed to leading the decarbonization process in the aerospace industry, and the company is working to bring the world ’ s first zero-emission civilian aircraft to market by 2035.
The establishment of the R & D center further expands Airbus ’ industrial footprint in China, demonstrating Airbus ’ roots in China and deepening cooperation.
The political implications of 292 aircraft
There is no doubt that this big order should be the result of a very long and arduous negotiation.
When the NATO strategy lists China as a “challenge ”, it is also worth playing with.
A real transcript, directly ripped apart the reality of the different tones of Europe and America.
The reality is here – there is no fundamental contradiction between China ’ s and Europe ’ s interests, or at best, ideological differences.
Geographically, there are no contradictions between China and Europe; economically, there are no contradictions in the complementary relationship between China and Europe; and the common interests of Sino-European cooperation are objectively far greater than contradictions.
The NATO of the United States wants everyone to work together against China. Although the NATO of the European Union also hopes to contain and suppress China, it also hopes to gain benefits from cooperation with China.
China is also very clear that there are strategic differences between the United States and Europe on the issue of China, which is determined by the fundamental interests of the two, and Europe has no hegemony and no power to seek hegemony, so there is no strategic contradiction in the nature of China and Europe.
The Chinese market is so large that the passenger aircraft market alone is a trillion-dollar business, and the only companies in the world that can produce large passenger aircraft are Boeing and Airbus. Who are China's orders to?
The order itself, in practical behavior to tell the world, China is the world's largest market, any country as long as it cooperates with China, can get a substantial enough economic return.
Obviously, the reality is that cooperation can win, not oppression and discredit.
The China-Europe Investment Agreement has not yet been signed, and if it is signed, the benefits will be even greater.
In 2022, as the world is looking forward to economic recovery, the global economy has encountered great challenges.
In the first quarter, the US economy grew negatively on a monthly basis, and the European economy grew almost zero.
For the European economy, it needs a huge incremental market to stimulate, and it needs stable market demand, which only China can provide, and the Central European economy is very complementary.
Europe and the rest of the world need to think calmly about whether to be "kidnapped" in a tank or to seek development.
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Airbus has delivered 47 planes to China this year versus one for Boeing, reflecting near-term market dynamics and geopolitical headwinds.

COMAC is an emerging competitor with the C919 positioned against the A320 and 737 families, supported by over 1,000 firm orders and a near-1,700 aircraft backlog.

Title:

Content: While China’s Comac may already be looking to the long-term future with its proposed ’C939’ widebody programme, the state-owned airframer appears to be focused on the more pressing need to ramp up output of its C919 single-aisle.

To date, just four examples of the CFM International Leap-1C-powered narrowbody have entered service – all with China Eastern Airlines – since the twinjet gained certification in September 2022.

Source: BillyPix

China Eastern is the only operator of the C919 currently

It has been a sluggish start for the Chinese narrowbody, particularly when compared to the soaring production rates of its Western rivals. Airbus, for example, is currently churning out more than 50 A320neo-family aircraft each month.

That the process has been slower than expected is not surprising, says Richard Aboulafia, managing director of AeroDynamic Advisory.

“It is probably due to the difficulties associated with building conforming aircraft; a very different challenge than just flying a jet and getting it certified.

“That’s a much longer road, along with the enormous challenge of establishing a product-support apparatus,” adds Aboulafia.

Equally, with economic and geopolitical considerations always part of Comac’s calculus, the slow ramp-up may be by design, argues Shukor Yusof, founder of aviation consultancy Endau Analytics.

He thinks Comac is “in no hurry… not because it can’t”, but because it is “not in its, or China’s, interest to do”.

A botched ramp-up would be worse than a slow ramp-up, he says. Comac – and by extension, Beijing – “will be watching” the state of the global supply chain, as well as geopolitical developments, “very closely”, before moving to increase output.

“Its next steps will depend on what happens to Boeing near-term, over the next six to 12 months, as well as how [Chinese leader] Xi Jinping’s recent state visit to France could push Airbus into a wider role vis-a-vis aircraft production in China,” says Shukor.

However, Comac’s growing backlog for the C919 still needs to be addressed. That total was bolstered in late April, with the other members of the country’s ‘Big Three’ – Air China and China Southern Airlines – each ordering 100 C919s. Although Aboulafia doubts the carriers need those aircraft, deliveries are set to run from 2024 to 2031.

In fact, Cirium fleets data records Comac as holding almost 1,000 firm orders for the C919, with another 700 aircraft covered by more tentative agreements – a quietly impressive backlog for the programme.

To address that total, local media reports suggest Comac is looking to achieve an annual production rate of up to 150 aircraft within five years.

The figure is “a bit over-ambitious”, says Shukor, pointing out the ongoing supply-chain constraints all manufacturers face, but “not impossible beyond 2030”.

But there are indications Comac is working to enhance its production system. In a now-deleted social media post widely reported by local media, China Aviation Planning and Design Institute Group, an entity linked to state-owned enterprise AVIC, said it had clinched the contract for the “second phase” of the C919 “production capacity construction project”.

Located in the Pudong area of Shanghai, where Comac is also based, the project would see the facility expand to cover 330,000sq m (3.55 million sq ft), with an unspecified number of production lines and parts warehouses, reports suggest.

Comac did not publicly confirm these reports and the airframer declines to comment on FlightGlobal’s query on production rates, except to say it is working to increase C919 output.

Source: Weibo

Against this backdrop, the news that the airframer may be contemplating the development of a second widebody programme is sure to raise eyebrows.

Comac is already working on the C929 – broadly speaking a rival to the A330neo and Boeing 787 – but the next project appears set to compete with the A350 and 777.

A report from Hong Kong’s South China Morning Post on 13 May, citing an unnamed source, says the airframer has developed design concepts for the new jet, but notes that it will take several years before any prototype is constructed.

The report gives no technical specifications for the new programme, such as the number of engines or capacity.

Comac declines to comment directly, saying obliquely that media should wait for official confirmation of its plans.

COMAC targets ramping C919 output toward 150 aircraft annually within several years, but current production and certification constraints limit near-term global penetration.

Title:

Content: The C919, China's highly-anticipated passenger aircraft, has finally entered the final stage of verification flight, opening the process of its first commercial operation in the spring of next year.
This Chinese-made aircraft, which is hoped to enter the international civil aviation market, is still very difficult to compete with Boeing and Airbus in the future.
Many people think that only to improve the current relatively low rate of domestic production, in order to compete with the two major civil aviation giants, in fact, the domestic production rate and manufacturing technology is not the main obstacle, the real problem lies in the state system, relying on the government to build a national power to create a competitive market for goods, modern market economy has not yet such examples.
Many people expect that the C919 is the beginning of China ’ s breaking the monopoly of the two major civil aviation giants in Europe and the United States. In fact, the C919 is not the first civil aircraft developed by China. As early as 2015, it launched the ARJ21 medium and short range small passenger aircraft, but the sales situation is not good, and many people are not optimistic about the performance of the C919 in the international market. In 2022, it obtained the airworthiness certificate and began mass production.
Compared with the equivalent Boeing 737 and Airbus A320 aircraft, the C919 has no advantages in terms of technology, performance, mileage and other parameters. The only advantage that can be called is the two items sent by the media: comfortable seats, the price is more than 10% cheaper, so it is difficult to compete with the international civil aviation giants.
It is inevitable that the new company will not be able to beat the giants of civil aviation for the time being, but the most common argument is that C919 has a large number of important pieces of work and technology dependent on foreign countries, and there is a risk of being "stuck in the neck" in the future.
The official domestic production rate is 60%, but most of the core components are imported from Europe and the United States, or are manufactured by foreign companies authorized by joint ventures in the mainland, especially the aircraft engines that are considered the most important.
The C919 is powered by a LEAP-X1C turbofan engine developed by General Motors of the United States in cooperation with Safran of France, and is the same series as the Boeing 737 and Airbus A320.
The Trump administration has tried to ban the sale of Chinese LEAP engines, but it has not succeeded. However, the current export license period is only until 2025.
If the C919 is not sold well, the license may be extended, and if the C919 is sold well, the supply may be severed under the current Sino-US relationship.
The Chinese alternative is to step up research and development of the domestically produced "Yangtze" CJ-1000A engine, which was also officially unveiled at the Zhuhai Air Show in September 2022.
Some analysts predict that domestic engines can be replaced as soon as 2025, but the relevant airworthiness certification will have to go all the way, which may take years.
According to a research report published by the Center for Strategic and International Studies (CSIS) in 2020, C919 has 82 major suppliers, of which 48 are US companies or joint ventures with the United States, 26 are European or European companies, and only 7 are Chinese companies.
The report also ridiculed the C919, saying that it was not a Chinese-made aircraft at all, because most of the components were imported, so the C919 did not pose a commercial threat to Boeing or Airbus.
The ARJ21, which is also made by China Commercial Aviation, has only delivered less than 100 aircraft in the past seven years, and the C919 will probably encounter the same problem in the future.
Although the C919 technology is not enough to compete with the competitiveness of Boeing and Airbus, the mainland still expects it to introduce more key technologies for the development of China's civil aviation industry.
At present, in addition to the possible replacement of the Yangtze CJ-1000 engine, 16 Chinese and foreign joint venture companies participate in the C919 supply chain, providing important systems such as avionics, flight control and communications navigation for the C919.
The consideration of international airworthiness standards is also an important factor in the low production rate of C919. European and American countries take flight safety as the reason to lead the development of airworthiness standards, which are exclusive in many systems and components, and cannot obtain airworthiness certificates without using systems and parts that meet international airworthiness standards.
The industry estimates that it will take at least 20 years for all domestically produced parts and systems to meet international airworthiness standards.
In this view, the current expectation of C919 to open up the international market or greatly improve the domestic production rate is too high and unrealistic.
China's main purpose is to develop the civil aviation market, C919 is only the first aircraft of its own production, from the determination of the case so far only more than 10 years, if compared to Airbus spent 40 years to stand firm in the international market and Boeing Chamber of resistance, China Commercial Aviation this experience can only be regarded as just entering the door, now do not worry that China can become a rival.
Since China has decided to develop civil aviation, it needs to give civil aviation manufacturers and suppliers a chance to test and improve, and it needs to use the vast market in China to train and build aircraft manufacturers.
However, the worry is that state-owned enterprises like private enterprises to produce highly competitive goods, from past experience it is almost impossible.
Perhaps under the requirements of the policy, there will be a considerable part of China's civil aviation to buy domestic civil aviation aircraft, but state-owned civil aviation aircraft manufacturers can not produce internationally competitive products because of this, inefficient, wasteful, corruption problems will still be the nightmare of the operation of the state-owned enterprise system, these are the biggest obstacles to the future difficult to compete with Boeing and Airbus.
Source: Headlines Revealed on Facebook.com
# C919 # China Commercial # Air Bus # Boeing # Civil Aircraft

Title:

Content: China's COMAC rivals Boeing and Airbus target Asia
T + T - normal size
On the first test flight of the C919 out of China, state-backed aircraft maker Comac flew to Singapore, a clear sign that potential Boeing and Airbus competitors see Southeast Asia as the best selling opportunity for overseas markets.
Comac said in a statement on Chinese social media: “This could be the cornerstone of our emerging market in Southeast Asia. ”
After Singapore, the company went to Vietnam, Laos, Cambodia, Malaysia and Indonesia.
With government support of up to $72 billion over the past 15 years, the single-aisle development is seen as a major step forward in implementing President Xi Jinping ’ s vision of China leading the technology value chain and further challenging its Western rivals, especially as Boeing ’ s safety record is being scrutinized after a door-panel exploded in January.
“The C919 has a strong opportunity to gain market share, particularly in the domestic market, ” said Mike Yumans, director of assessments and consulting at IAA Aviation Consulting, noting that rival aircraft from Airbus and Boeing are sold until around the end of this decade, but added:“ The immediate challenges for COMAC are in terms of production, meeting domestic demand, and obtaining certification to penetrate international markets. ”
Since the C919 ’ s inaugural commercial flight in May, only five aircraft have entered service domestically, all delivered to state-owned China Eastern Airlines, and Yiomans sees the Chinese market as the biggest near-term opportunity for the C919.
Although the C919 has not yet been approved by air authorities in Europe and the United States and can only operate commercially within China, aviation analysts say regulators in some Southeast Asian, African and Latin American countries could approve it faster.
Indonesia ’ s Transnusa, which is partly owned by China Aircraft Leasing Group, already operates two of the ARG21, the smaller version of the Comac.
Shakur Yusuf, founder of aviation consultancy Indow Analytics, said: “If an airline flies COMAC to countries where regulatory authorities have approved the aircraft, there is no reason for potential buyers to worry about what the US or EU are saying.
The timeline for obtaining license certificates from the EU and the US remains unclear, meaning that despite the scrutiny Boeing is under, Airbus is likely to benefit more than COMAC, according to Xiao Wenfu, a professor of transport economics at the Hong Kong Polytechnic University.
Fu also noted that the production rate of the C919 is still growing slowly, while Comac said it had received 1,061 orders as of last year from Chinese domestic airlines and air charter companies, and would likely only deliver nine aircraft this year, according to IBA.
The rate is expected to rise to 70 aircraft per year by the end of the decade, but despite this increase, the volume of production remains less than one month from Airbus ’ s capacity to produce single-aisle aircraft.
The aircraft could have an approximate 8% share of the single-aisle market in China and only 1.2% share globally by 2030, if COMAC can successfully increase production.
Willie Walsh, president of the International Air Transport Association (IATA), said: “It will probably take 20 years for COMAC to compete with Airbus or Boeing on a global scale.
Comac will be a major player in the market, but it will take some time for real international interest to emerge. ”
Two aircraft leasing companies based in Asia told the Financial Times they were reluctant to buy the C919 in bulk due to a lack of international certifications and uncertainty about customer orders.
Max Zinglin, chief economist at Mercator Institute for Chinese Studies, said Comac, which did not respond to requests for comment, appeared to be taking a cautious approach to ramping up production because “any major safety issue would be a huge setback ”; however, others said Comac, with its massive government support, would be able to ramp up production in time.
Yousef, from Indow Analytics, said: “We never underestimate China ’ s ability to increase production, as China is not understaffed, unlike Airbus and Boeing, and more importantly, it has money. ”
But for Comac, it must produce planes “consistently and safely, ” he added,“ it won ’ t be as easy as making electric cars or mobile phones, ” especially as the C919 still relies heavily on foreign suppliers.
Comac relies heavily on Western suppliers of key components, including engines supplied by France ’ s CFM and auxiliary power units supplied by Honeywell, making it vulnerable to geopolitical tensions.
While Chinese manufacturers want to replace some Western components with homemade alternatives, it will take years to do so in a way that is in line with international commercial aviation safety standards.
Richard Aboulafia, director of Aerodynamic Advisor, said the US and UK still dominate the production of commercial aircraft engines, while Yusuf said: “Realistically, COMAC is not in a position to threaten Airbus and Boeing, but time is on its side. ”
Key words:
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The C919’s pricing is more than 10% cheaper than comparable Western models and production costs are lower, yet heavy reliance on Western suppliers and lack of EU/US certification cap export prospects.

Title:

Content: C919 Visit Hong Kong _ How strong are Chinese aircraft? Compete against Boeing 737 and Airbus A320
Author: Au Jingluo
Published: Updated:
China ’ s C919 visited Hong Kong and gave a flight demonstration over Victoria Harbour on 16 December. What is the difference between the C919 and the C919, which is the first large domestic aircraft and is regarded as a rival to similar models of Boeing and Airbus?
Cut-off and flight distance
The C919, Boeing 737-MAX and Airbus A320neo are all narrow-body aircraft, three of the same size, designed for short and medium routes.
The first comparison is the passenger capacity and flight distance:
C919: Standard passenger capacity 168 people, range about 4600 km
737-MAX 8: Standard passenger capacity of 178 people, range of about 6,500 km
A320neo: Standard capacity of 194 passengers, range of about 6,500 km
In terms of passenger capacity, the C919 has a passenger capacity of 168 to 190, which is not comparable to the 737-MAX 8 and the A320neo, but it is not far apart.
The C919 and the other two use CFM LEAP engines (-1A, -1B and -1C respectively), both of which are of the latest generation.
Theoretically, the distance between the three should be similar, but this is not the case.
Due to the design and use of different components, the C919's fuel capacity and efficiency are low, so the range of the 737 MAX and the A320neo is not comparable, which has an impact on the flight distance.
China Southern Airlines' first Boeing 737 MAX 8 aircraft (registration number B-1206) landed at Guangzhou Baiyun International Airport. (Weibo @ China Southern Airlines)
Cost and production
Then there ’ s the build price, which is $99 million for the C919, down from $121 million for the 737-MAX 8 and $111 million for the A320neo.
However, it is not surprising that aircraft manufacturers will slash prices to attract orders, even at a 50% discount, and the C919 needs the same discount to attract airlines to buy.
Because the C919 is currently almost exclusively ordered by Chinese airlines, it is difficult to compare with the international sales of Boeing and Airbus aircraft.
However, since this is a domestic aircraft, it is believed that it will be cheaper to attract domestic airlines to buy it under state subsidies, and may be cheaper than the 737-MAX 8 and A320neo.
COMAC claims that nearly 1,200 orders have been placed for the C919, but only a few have been delivered on the production line.
China Commercial Aviation has indicated that it will reach a production rate of 150 aircraft per year within five years, which is still a long way from Boeing and Airbus producing about 60 aircraft per month.
Pictured is an A320neo from ITA Airways on April 28. (Reuters)
Three Days in the Future
As COMAC increases its production, it can be expected that Chinese airlines will prefer to opt for the C919 over other aircraft.
Airbus CEO Guillaume Faury has said that the C919 will make the narrow-body market a "three-point world" in the next decade, at least in China.
At present, the biggest resistance to the C919 is the international market. It is difficult to expand overseas because it is not certified by the Federal Aviation Administration (FAA) or the European Aviation Safety Agency (EASA).
However, as China Commercial Aviation continues to improve its aircraft, it is almost certain to increase its passenger capacity and range to the equivalent of the 737-MAX 8 and the A320neo.
When the C919 or future model gets international certification and exports, it will change the situation of the two-headed monopoly of Boeing and Airbus for decades.

COMAC could capture around 8% of China’s single-aisle market by 2030 if ramp-up and regulatory milestones are achieved, leveraging China’s large domestic demand.

Japan’s planned $33 billion investment in hydrogen-fueled aviation by 2035 points to longer-term propulsion shifts that could reshape competitive dynamics.

Title:

Content: Advertisment

Japan's Bold $33 Billion Leap into Hydrogen-Fueled Aviation by 2035

Japan aims to pioneer the next generation of aviation with a $33 billion investment into hydrogen-fueled aircraft, targeting a 2035 launch.

Nasiru Eneji Abdulrasheed
New Update

Japan has unveiled an ambitious plan to pioneer the next generation of aviation technology with a $33 billion investment aimed at developing a hydrogen-fueled passenger aircraft by 2035. This initiative not only marks Japan's re-entry into the global aviation market but also underscores its commitment to sustainable and decarbonized transport solutions. The project, catalyzed by the need for carbon-neutral transportation and the lessons learned from past aviation endeavors, seeks to position Japan at the forefront of green aviation technology.

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Revolutionizing Air Travel

At the heart of Japan's aviation strategy is the development of a next-generation, narrow-body passenger aircraft powered by hydrogen. This initiative is driven by the dual goals of reducing the aviation industry's carbon footprint and securing Japan's position as a leader in the emerging market for sustainable aviation technologies. With a projected investment of 5 trillion yen (approximately $33 billion) over the next decade, the government-backed project aims to harness the capabilities of domestic suppliers and innovators. The plan includes not only the aircraft's development but also the creation of a supporting ecosystem for hydrogen fuel production, storage, and transportation.

Learning from the Past

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The announcement of this ambitious project comes on the heels of the discontinuation of Mitsubishi Heavy Industries Ltd.'s SpaceJet program, a previous attempt to break into the passenger jet market that was ultimately shelved due to escalating costs and technical challenges. The lessons learned from the SpaceJet's setbacks have been instrumental in shaping the new hydrogen aircraft initiative, emphasizing the importance of homegrown technological expertise and global market foresight. This strategic pivot towards hydrogen fuel represents a significant shift in Japan's approach to aviation, aiming to leapfrog conventional jet fuel technologies in favor of greener alternatives.

Aiming for the Skies

With a timeline set to have the hydrogen-fueled aircraft operational by 2035, Japan's aviation ambitions are not just futuristic but are grounded in a realistic assessment of technological advancements and market readiness for sustainable fuels. The project's success hinges on international collaboration, regulatory approval, and the development of a global hydrogen infrastructure. As Japan embarks on this journey, the global aviation community watches closely, recognizing the potential for hydrogen to revolutionize air travel and significantly reduce the industry's environmental impact.

As Japan's $33 billion aviation project takes flight, the implications for the global aviation industry, environmental sustainability, and the technological landscape are profound. This bold move not only reaffirms Japan's commitment to innovation and sustainability but also sets a new benchmark for the future of air travel. Amidst the challenges and uncertainties, Japan's hydrogen aircraft initiative inspires a vision of a cleaner, greener aviation era, propelling the world towards a more sustainable future.

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Regionally, North America remains a core replacement market, Asia-Pacific leads growth and fleet expansion, South Asia accelerates fastest, and the Middle East combines passenger and cargo tailwinds with widebody needs.

Fuel and sustainability trends underpin the fleet mix, with airlines prioritizing eco-efficient single-aisles and newer widebodies, driving a replacement wave of about 17,170 older aircraft by 2042.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

Supply chain resilience and digitalization are strategic differentiators, with Airbus leveraging IoT and AWS to manage a 15,000-supplier network amid persistent constraints.

Title:

Content: The global supply chain crisis has spread to the aviation industry, with aircraft manufacturer Airbus revealing that the supply of its best-selling single-aisle narrow-body passenger aircraft is in short supply, so deliveries of narrow-body passenger aircraft will be limited in the next three years due to disruption from the supply chain.
The Wall Street Journal reported that Airbus Chief Financial Officer Dominik Asam said in an interview that during the coronavirus epidemic, many airlines stopped ordering aircraft and even chose to postpone or cancel orders, but the epidemic has slowed down and airlines are beginning to hope to deliver new aircraft as soon as possible.
“The challenge we face is not being able to deliver aircraft in the short term, and the supply chain is not producing parts fast enough, ” said Dominik Asam.“ The challenge is not being able to deliver aircraft in the short term. The supply chain is not producing parts fast enough and we are not able to deliver all orders in real time. ”
In fact, not only is Airbus production limited, Boeing is also under pressure to deliver aircraft orders, and the related supply chain burden of aircraft parts is even heavier after the Boeing 737 Max is re-licensed for production.
During the COVID-19 pandemic, many suppliers were forced to cut production and stop production due to the epidemic, resulting in undigestible demand after the recovery of the epidemic.
# Chip Shortage # Semiconductor Out of Stock # Supply Chain # Aircraft # Large Out of Stock

Title:

Content: [Digital Transformation] Airbus uses IoT to strengthen supply chain control
Technology 14: 00 2022 / 12 / 10
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Airbus expects the global supply chain crisis to continue until at least the middle of next year.
The outbreak of the epidemic, soaring shipping costs and the impact of the Russian-Ukrainian war, many companies in recent years have realized the importance of smooth supply chain operation to their business operations.
Airbus shares that it has successfully strengthened its control of the supply chain through the establishment of a supply chain management system with the Internet of Things as the core, so as to continue to complete aircraft deliveries in an epidemic environment.
Airbus CEO Guillaume Faury told the media earlier that the supply chain crisis, which has been around for more than a year, will continue and there will be no significant improvement in the next six months due to factors such as the Russia-Ukraine crisis, energy prices and inflation, and China's epidemic measures.
At the same time, the aviation industry will not be able to fully meet the surge in travel demand, and the global flight chaos will continue into next year.
【 Digital Transformation 】 Telecom Transformation Enhances Database Effectiveness to Promote Business Platformization
【 Digital Transformation 】 Technology talent shortage continues to rise, enterprises tend to move to hybrid cloud LCNC platform
Vincent Denys, Head of IoT Platform at Airbus, shared at AWS re: Invent that the company ’ s supply chain is complex, with 15,000 suppliers from more than 100 countries in the civil aviation sector alone.
Logistics complexity coupled with the need to consider the regulatory issues of various countries, the task of managing the supply chain has always been very difficult, and this year's logistics situation and parts quality problems, the challenges are more obvious.
He added that Airbus is partnering with AWS to help manage its complex supply chain with IoT systems, connect with ride-hailing providers, and obtain real-time information through data analytics.
At present, the platform is connected to 30,000 devices. In the system design, we pay special attention to application delivery time and total cost of ownership. The new application solutions on the platform can be launched in an average of 3 months.
He stressed that supply chain visibility plays a key role in the smooth production of the company and the delivery of aircraft to customers.
According to foreign reports, in the first 10 months of this year, Airbus delivered a total of 497 civil aircraft, but there is still a certain distance from the target of about 700 aircraft for the year.
Yasser Alsaied, vice president of Internet of Things at AWS, explained that supply chain visibility, a tool that enables enterprises to get real-time insight into the supply and freight of raw materials, has become even more important as supply chain crises continue.
Businesses need immediate advice to solve the unexpected problems encountered in transportation, goods supply and so on.
AWS released the AWS Supply Chain tool at re: Invent, which is understood to automatically synthesize and analyze data from different supply systems, allowing enterprises to observe their operations in real time and make business decisions such as demand forecasting and inventory management.
It is worth mentioning that the system will use machine learning to detect potential stock shortages or delays and make warnings, and make corresponding recommendations such as deployment of inventory according to the corresponding risks, sustainable development impact and other factors.
AWS Supply Chain leverages machine learning to provide intelligent advice on enterprise supply chain operations. (Screenshot)
AWS Hong Kong ’ s Head of Solution Architecture explains that the solution leverages Amazon ’ s many years of e-commerce experience to help businesses reduce risk, save costs, and improve customer experience.
For example, e-commerce, retail or logistics warehousing customers can use this service to integrate with existing ERP (enterprise resource planning), supply chain system data sources.
Reporter: Chow Chun-lin
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What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

3D printing and connected aircraft technologies are gaining traction to improve logistics, maintenance, and real-time operations, though high integration costs remain a challenge.

Title:

Content: Intelligence Market Report

Connected Aircraft Market Size to Reach USD 6758.8 Million in 2028, at CAGR of 9.9%, Industry Share, Growth, Latest Trend, Opportunities

Connected Aircraft Market Dynamics, Industry Overview, Segmentation, Competitive Landscape and SWOT Analysis Including Key Players - Gogo, Honeywell International, Panasonic Avionics, Thales, Global Eagle Entertainment, Rockwell Collins, Zodiac Aerospace, Inmarsat, Cobham, Bae Systems, Kontron, Viasat, Digecor

London, UK -- (SBWIRE) -- 02/09/2023 -- Connected Aircraft Market report provides an in-depth analysis of the global connected aircraft market, including market size, growth drivers, trends, and opportunities. It also provides a comprehensive overview of the competitive landscape and key players in the market.

Global Connected Aircraft Market Overview
The connected aircraft market refers to the integration of information and communication technologies in aircraft to improve flight safety, passenger comfort, and operational efficiency. The connected aircraft market is rapidly growing due to the increasing demand for real-time information and communication during flights. This has resulted in a rise in the number of connected aircraft, which are equipped with advanced communication systems, sensors, and software.

Request a Free Sample of the Connected Aircraft Market Report @ https://www.intelligencemarketreport.com/report-sample/380777

Market Segmentation
The global connected aircraft market can be segmented based on type, application, and region. The Connected Aircraft Market Major Segments and Subsegments Listed Below

Segmentation by type
Inflight Connectivity
Air-to-Air Connectivity
Air-to-Ground Connectivity

Segmentation by application
Commercial
Military

This report splits the market by region
North America [United States, Canada]
Europe [Germany, France, U.K., Italy, Russia]
Asia-Pacific [China, Japan, South Korea, India, Australia, China Taiwan, Indonesia, Thailand, Malaysia]
Latin America [Mexico, Brazil, Argentina]
Middle East & Africa [Turkey, Saudi Arabia, UAE]

Market Drivers
The primary drivers of the connected aircraft market are the increasing demand for real-time information and communication during flights, the need for improved flight safety and passenger comfort, and the growing demand for advanced communication and navigation systems in aircraft. Additionally, the increasing use of connected aircraft for military purposes is expected to fuel market growth. The increasing demand for connected aircraft in emerging economies is also expected to drive market growth.

Market Challenges
One of the biggest challenges facing the connected aircraft market is the high cost of integrating these technologies in aircraft. The cost of procurement, installation, and maintenance of connected aircraft systems can be a major barrier for airlines and other operators. Additionally, the limited availability of skilled personnel to operate and maintain these systems can also pose a challenge for market growth.

Market Opportunities
The increasing demand for connected aircraft in commercial and military applications is a major opportunity for market growth. The growing demand for advanced communication and navigation systems in emerging economies is expected to provide significant growth opportunities for the market. Additionally, the increasing use of connected aircraft for maintenance and repair is also expected to drive market growth.

Inquire about the Connected Aircraft Market Report @ https://www.intelligencemarketreport.com/send-an-enquiry/380777

Market Leaders
Some of the leading players in the connected aircraft market includes
Gogo
Honeywell International
Panasonic Avionics
Thales
Global Eagle Entertainment
Rockwell Collins
Zodiac Aerospace
Inmarsat
Cobham
Bae Systems
Kontron
Viasat
Digecor

Conclusion
The global connected aircraft market is expected to grow rapidly in the coming years due to the increasing demand for real-time information and communication during flights, the need for improved flight safety and passenger comfort, and the growing demand for advanced communication and navigation systems in aircraft. The increasing demand for connected aircraft in emerging economies is also expected to drive market growth. However, the high cost of integrating these technologies in aircraft and the limited availability of skilled personnel to operate and maintain these systems can be a major challenge for the market.

Table of Content
1 Scope of the Report
2 Executive Summary
3 Global Connected Aircraft by Company
4 World Historic Review for Connected Aircraft by Geographic Region
5 Americas
6 APAC
7 Europe
8 Middle East & Africa
9 Market Drivers, Challenges and Trends
10 Manufacturing Cost Structure Analysis
11 Marketing, Distributors and Customer
12 World Forecast Review for Connected Aircraft by Geographic Region
13 Key Players Analysis
14 Research Findings and Conclusion

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About Us: Intelligence Market Report includes a comprehensive rundown of statistical surveying reports from many distributers around the world. We brag an information base traversing basically every market classification and a much more complete assortment of statistical surveying reports under these classifications and sub-classifications. Intelligence Market Report offers premium reformist factual looking over, statistical surveying reports, investigation and gauge information for businesses and governments all throughout the planet.

Title:

Content: GlobalData forecasts a paradigm shift in aerospace and defence logistics as 3D printing technology emerges as a solution, enabling on-demand production of mission-critical components and addressing longstanding challenges in spare parts accessibility and standardisation.

The burgeoning 3D printing market is poised to reshape the landscape of aerospace and defence industries, transcending conventional manufacturing norms and ushering in a new era of logistical efficiency and operational agility. According to GlobalData, a leading data and analytics company, the trajectory of the 3D printing industry signals transformative implications, with projections exceeding $70bn by 2030.

Contrary to traditional manufacturing methods, 3D printing, also known as additive manufacturing, offers flexibility and responsiveness, particularly in addressing the needs of the aerospace and defence sectors.

Wilson Jones, a defence analyst at GlobalData, underscores the role of 3D printing in augmenting military capabilities, citing instances such as the ongoing conflict in Ukraine, where combat deployment of 3D printers has been observed to fabricate mission-critical components for the Ukrainian armed forces.

Moreover, the advent of 3D printing technology heralds a shift in logistical paradigms, with the ability to produce components on-site, negating the need for inventories and circumventing logistical bottlenecks. As exemplified by initiatives such as the US Army Research Laboratory’s project to enable in-field unmanned aerial vehicles (UAVs) manufacturing, 3D printing facilitates real-time equipment production, enhancing operational readiness and reducing dependency on traditional supply chains.

The integration of 3D printing technology is already happening in the US naval industry. HII, a player in naval manufacturing, has harnessed additive manufacturing to enhance efficiency and flexibility in producing components for vessels like the John F. Kennedy (CVN 79) aircraft carrier.

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Furthermore, HII’s collaboration with General Dynamics Electric Boat (GDEB) and 3D printing companies like AMMCON has yielded submarine solutions, such as using 3D printed copper-nickel parts for the Virginia-class submarine fleet. This transition to additive manufacturing accelerates the shipbuilding process and addresses shortages and maintenance delays plaguing the US Navy’s submarine programmes.

Jones emphasises the potential of 3D printing across various facets of military operations, from the production of specialised vehicle components to the fabrication of imperial-sized tools necessitated by unit measurement disparities. The versatility and cost-effectiveness of 3D printing technology offer a solution to longstanding challenges, enabling rapid adaptation to evolving operational requirements and mitigating logistical complexities.

As the 3D printing market continues its growth trajectory, its integration into the aerospace and defence sectors promises to change logistics, bolster operational resilience, and empower military forces with agility and adaptability in the face of evolving threats and challenges.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

On balance, Airbus and Boeing are the likely long-term winners given their scale, backlogs, and sustainability investments, with Airbus currently advantaged in China and Boeing strong in North America and poised for Middle East opportunities.

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Content: Middle East will need 3k new aircraft by 2042: Boeing

Boeing holds a significant position in the operations of the Kingdom’s flagship carrier, Riyadh Air. Shutterstock.
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Middle East will need 3k new aircraft by 2042: Boeing

RIYADH: Boeing anticipates a demand for 3,000 new aircraft in the Middle East by 2042, signifying the region’s growth in the aviation sector.

During a media briefing ahead on Nov. 12, ahead of Dubai Airshow 2023, President of Boeing Brendan Nelson restated the company’s commitment to supporting the industry in Saudi Arabia, the UAE, and neighboring nations.

Boeing holds a significant position in the operations of the Kingdom’s flagship carrier, Riyadh Air ,as in March, the airline ordered a fleet of 72 787 Dreamliners, with the inaugural flight scheduled for 2025.

The aviation firm plans to work closely with regional governments, focusing on manufacturing aircraft parts, research and development, and professional training to contribute to the sector’s growth.

According to Khaleej Times, Nelson said: “Our vision is to build an ecosystem in the region, invest in R&D (research and development), develop industrial partnerships, and enhance manufacturing capacity in both commercial and defense sectors.”

As part of its expanding regional engagements, Boeing joined forces with the UAE’s leading renewable energy firm Masdar in October to advance the global sustainable aviation fuel industry, aligning with the industry’s goal of achieving net zero emissions by 2050.

According to Boeing’s Commercial Market Outlook forecast, global airlines will need 42,595 new aircraft by 2042, with Middle East-based airlines requiring 3,025 – 45 percent being widebody planes.

These objectives are driven by the rising demand for travel within the region and the emergence of new flight hubs.

Boeing predicts that the global aviation industry will require 2.2 million new personnel by 2042, with the Middle East and Africa contributing 13 percent to meet this demand.

Nelson emphasized the company’s active exploration of additional opportunities in Saudi Arabia and the broader region, where over 3,000 aircraft, 58,000 pilots, and nearly 100,000 crews will be needed in the next two decades.

The demand for airliners is anticipated to remain robust, propelled by the Kingdom’s target of attracting 150 million tourists as part of its economic diversification efforts.

Saudi Arabia’s aviation evolution

Saudi Arabia launched a new aviation policy in October to boost the sector’s performance and attract investments worth $100 billion by 2030.

According to the General Authority of Civil Aviation, the plan will see new regulations for airports, ground services, cargo and air transport services.

This approach supports the privatization of airports, facilitates the procedures for new investors to join the aviation market, and enables airport operators to set wages according to their plans.

The authority will also enable airport operators to diversify their revenues flexibly by increasing revenues from non-navigational services.

In September, Randy Heisey, Boeing’s managing director of commercial marketing in Africa and the Middle East region, told Arab News that the company is working with Saudi airlines to implement advanced aircraft and engine technologies that align with global sustainability goals.

Riyadh Airports partners with ADB Safegate to modernize aviation infrastructure

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Riyadh Airports partners with ADB Safegate to modernize aviation infrastructure

RIYADH: Saudi Arabia’s King Khalid International Airport is poised to witness improved efficiency thanks to its partnership with ADB Safegate, a Belgium-based aviation service provider.

Riyadh Airports Co., the entity overseeing the airbase’s operations, has recently signed a memorandum of understanding with the global aviation solution provider to foster cooperation.

The collaboration aims to develop energy efficiency, implement predictive maintenance, and enhance streamlined passenger flow.

The partnership also includes working on an innovative transformation process that leverages technical solutions to digitize airport automation, monitoring, and maintenance processes.

The companies involved plan to explore the potential of artificial intelligence, machine learning, and advanced video analytics. Furthermore, both entities will collaborate on virtual reality, augmented reality, as well as Internet of Things technologies. In addition, the implementation of 5G technology is also on the agenda.

Osama Al-Fawaz, CEO of Information and Communications Technology at Riyadh Airports Co., said that this agreement aligns with the digital transformation goals of the company, relying on the latest specialized technologies.

Laurent Dubois, CEO of Safegate, highlighted the transformative potential of this agreement, emphasizing that RAC operates one of the region’s most significant airports. He added that the deal reflects Riyadh Airports’ eagerness to adopt the latest international technologies in the field.

According to data from the General Authority of Civil Aviation, the Riyadh airport outperformed other international aviation hubs in Saudi Arabia for overall performance in September. It achieved high marks across the 11 operational performance standards, which track passenger experience and airport efficiency.

The airbase secured the top spot in the category of international terminals serving over 15 million passengers annually, with a compliance rate of 82 percent.

The MoU aligns with Saudi Arabia’s Vision 2030 National Aviation Strategy, which seeks to diversify revenue sources by boosting the travel and tourism sector.

According to the strategy’s goals, the Kingdom aims to enhance air connectivity to 250 destinations, accommodating 330 million passengers, and doubling air cargo capacity to 4.5 million tons by 2030.

Riyadh Air unveils second livery design at Dubai Airshow

Updated 12 min 8 sec ago
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Riyadh Air unveils second livery design at Dubai Airshow

RIYADH: Saudi flag carrier Riyadh Air revealed its second livery design via a QR code at the Dubai Airshow on Monday.

The new livery maintains the indigo theme, announced in June at the Paris Air Show, with striking lines of Arabic calligraphy.

This move reflects the Kingdom’s forward-thinking ambitions of using iridescent color to add a modern twist to the innovative design, making Riyadh Air, wholly owned by the Public Investment Fund, instantly recognizable on land or in the air.

“As the largest startup in commercial aviation in decades, we are delighted to unveil to the world Riyadh Air’s second livery, which will be unmistakable when it takes to the skies in 2025 as we become one of the first international carriers to have permanent dual liveries on an active fleet,” said Riyadh Air CEO Tony Douglas in a statement.

The new look features a widespread cockpit window design, contrasting the indigo signature theme against a light sparkling fuselage.

Additionally, the aircraft will have Riyadh Air written in English and Arabic alongside the airline’s trademark logo on the tail, engines and underbelly.

“We revealed our first livery reveal to global acclaim, announced fleet orders for our wide-body aircraft and signed several ground-breaking new partnerships,” said Douglas.

He added: “This iconic second livery is the latest milestone for Riyadh Air as we shape and disrupt the future of air travel and aviation, with many more things to come.”

Creating a second Saudi national airline alongside the existing flag carrier Saudia is part of the Kingdom’s plan to diversify its economy.

The CEO said that the airline has already provisionally ordered 72 Boeing 787 wide-body jets, and narrow-body aircraft were next.

Douglas also unveiled Riyadh Air’s plans to begin operations in 2025 and connect the Kingdom’s capital to over 100 destinations worldwide by 2030.

“It’s a brand that has an obsessional attention to detail with guest experience. It’s a brand that is a true digital native because we have no legacy. It’s a brand that stands for commercial aviation and environmental sustainability,” he said.

In March, Saudi Crown Prince Mohammed bin Salman announced the creation of the new national airline.

The airline seeks to enable Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism, the Saudi Press Agency reported at that time.

East Pipes secures $117m contract with Aramco

Updated 13 November 2023
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East Pipes secures $117m contract with Aramco

RIYADH: Dammam-based East Pipes Integrated Co. for Industry has secured a contract worth over SR440 million ($117 million) with Saudi energy giant Aramco for the manufacturing and supply of steel pipes for key projects within the Kingdom.

In its filing to Tadawul, the manufacturer of spiral steel pipes stated that the entire contract work is set to be completed within a 13-month period. The company further emphasized that the financial impact of the contract will be evident in the second and third quarters of the financial year 2024/2025.

Established in 2010, East Pipes is one of the leading manufacturers of helical submerged arc welded pipes, with an annual production capacity of up to 500,000 tons, according to its website.

In May, the firm secured a contract to manufacture and supply steel pipes to Aramco, marking another significant deal worth SR1.8 billion, according to a bourse filing.

Oil Updates - crude falls on weak demand outlook in US and China, Fed hedging

Updated 13 November 2023
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Oil Updates - crude falls on weak demand outlook in US and China, Fed hedging

BEIJING: Oil prices fell on Monday, erasing gains from Friday as renewed concerns over waning demand in the US and China, coupled with mixed signals from the Federal Reserve, dented market sentiment, according to Reuters.

Brent crude futures for January were down 61 cents, or 0.75 percent, at $80.82 a barrel at 11.00 a.m. Saudi time, while the US West Texas Intermediate crude futures for December were at $76.56, down 61 cents, or 0.79 percent.

Prices gained nearly 2 percent on Friday as Iraq voiced support for oil cuts by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, but lost about 4 percent for the week, notching their third weekly losses for the first time since May.

“Investors are more focused on slow demand in the United States and China while worries over the potential supply disruptions from the Israel-Hamas conflict have somewhat receded,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

The US Energy Information Administration said last week crude oil production in the country this year will rise by slightly less than previously expected while demand will fall.

Next year, per capita US gasoline consumption could fall to the lowest level in two decades, it said.

Markets were wary of potential US policy tightening after Federal Reserve Chair Jerome Powell said last week that it could raise interest rates again if progress on curbing inflation stalls.

With financial conditions looser after a Friday jump in stock markets, “there is a good chance of more hawkish Fed speak this week,” said Tony Sycamore, a market analyst at IG.

That is “not a prospect that crude oil will welcome given that recent data in China and the US has brought growth fears back to the surface,” he said.

Weak economic data last week from China, the world’s biggest crude oil importer, increased fears of faltering demand.

China’s consumer prices fell to pandemic-era lows in October, casting doubts on the strength of the country’s economic recovery.

Additionally, refiners in China asked for less supply from Saudi Arabia, the world’s largest exporter, for December.

Still, Kikukawa said oil prices would be supported if WTI approaches $75 a barrel.

“If the market falls further, we will likely see support buying on expectations that Saudi Arabia and Russia would decide to continue their voluntary supply cuts after December,” Kikukawa said.

Top oil exporters Saudi Arabia and Russia confirmed last week they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to drag on crude markets.

OPEC+ will meet on Nov. 26.

On the supply side, US energy firms cut the number of oil rigs operating for a second week in a row to their lowest since January 2022, energy services firm Baker Hughes said. The rig count points to future output.

Egypt’s headline inflation eases to 35.8% in October

Updated 13 November 2023
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Egypt’s headline inflation eases to 35.8% in October

CAIRO: Egypt’s annual urban consumer price inflation rate dropped to 35.8 percent in October from a record high of 38 percent in September, data from the country’s statistics agency CAPMAS showed on Saturday, coming in lower than analysts had expected.

The median forecast of 19 analysts polled by Reuters had shown inflation slipping to 37.1 percent.

Month on month, price rises slowed to 1 percent in October from 2 percent in September.

Inflation had accelerated every month since June, when it reached 35.7 percent, topping the previous high of 32.95 percent in July 2017.

Food and beverage prices rose by 1.5 percent month on month and an annual 71.3 percent, CAPMAS said.

Meanwhile, Egypt’s central bank said on Monday it sold $1.6 billion in one-year dollar-denominated Treasury bills with an average yield of 4.6 percent. The auction will be settled on Tuesday.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

COMAC should be watched as a domestic share gainer and potential third force over time, pending certification progress, supply chain localization, and sustained production ramp-up.

Title:

Content: Friday 15 Dhu al-Hijjah 1445 AH - 21 June 2024 |
Programs
Watch our latest episodes online
Can China ’ s COMAC break Airbus and Boeing ’ s monopoly in the passenger jet market?
DAE Chairman Fairuz Tarapur told Reuters China ’ s state-owned COMAC has the opportunity to break Airbus and Boeing ’ s monopoly on the passenger jet production market over the next decade.
Airbus and Boeing are major aircraft suppliers to airlines, but Airbus is struggling to boost production amid record orders and Boeing is under regulatory scrutiny after a new body plate exploded in flight in January.
In a recent interview, Tarapur described the narrow-body C919, made by China Commercial Aircraft Corporation (COMAC) and compared to the Airbus A320 and Boeing 737 Max, as a “very good aircraft. ”
“Over the next decade, Comac will have a unique opportunity to break this duopoly, ” he said in Dubai this month.
"Because on the one hand Airbus has sold everything it has while Boeing is having production problems."
The Comac aircraft fly almost exclusively within China and with an Indonesian airline.
The aircraft manufacturer is seeking certification from the European Aviation Authority for its C919 while also looking for international customers.
However, aviation industry sources warn that Comac is still a long way from achieving successes at the international level especially without US or EU certifications or without more efficient aircraft.
Tarapur said demand for the plane from China and neighboring countries was "very strong" and COMAC had "a very good chance of making solid progress".
“In 30 years from now, I think we ’ re not going to talk about a binary monopoly, we ’ re definitely going to be an industry in which Comac plays a more important role. ”
Source:
• Reuters

Investors should also monitor cargo conversions and freighter demand, as Boeing builds global conversion capacity and the freighter fleet is set to expand materially through 2042.

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Content: Watch Now

Orders for freighter aircraft slow ‘to a trickle’

Leasing companies stuck with secondhand cargo conversions as production momentum soars, but glut seen as temporary

WASHINGTON — Aerospace companies that specialize in converting passenger planes to freighters are expected to crank out a record number of units this year, but deteriorating international freight and e-commerce volumes have chilled orders for new and aftermarket aircraft.

Although more cargo aircraft are being produced than currently needed, airlines and lessors are mostly sticking with aircraft commitments to take advantage of forecast growth in e-commerce and international trade, and to modernize their fleets.

Warnings about a looming glut of narrowbody cargo jets serving short- and medium-haul express routes are tempered by the fact that, while some conversions have been postponed, few have been canceled so far.

There are 270 factory-built cargo aircraft on back order, according to London-based aviation analytics and appraisal firm IBA. Data provided by U.S. consultancy AeroDynamic Advisory shows more than double that number (600) of passenger planes in queue for retrofits.

Meanwhile, aftermarket airframers are adding more production lines around the world by partnering with repair and overhaul shops that tear down the passenger compartment and install features such as a wide cargo door, heavy-duty floor beams and a container loading system. Boeing this year announced plans to establish conversion centers in the Middle East and India.

The lag in time from when airlines place orders in response to demand and manufacturers’ ability to fulfill them is impacting the supply balance. Analysts say freighter deliveries typically peak two to four years after strong demand growth, which means conversion activity could stay strong through 2024.

Overhaul specialists completed about 130 freighter conversions last year, up from the previous record of 116 in 2021, according to various industry databases. During the 30 years prior to the COVID crisis, by comparison, cargo changeovers of used passenger jets averaged 60 to 70 per year.

At the same time, IBA estimates deliveries of new factory freighters will increase to 52 units next year from 35 in 2023.

“The assumption is there is massive overcapacity in the freighter market, but it’s more nuanced,” said Tom Crabtree, managing director at consultancy Trade and Transport and former chief editor of Boeing’s biennial World Cargo Forecast, on the Aug. 24 edition of the “Time on Wing” podcast

“What’s not widely appreciated in the air cargo sector is that e-commerce has a lot of runway for growth ahead of it in the developing world. And that is a segment of the market that is often served by medium widebody freighters or narrowbody freighters,” he said.

Air transport market hits bottom

Airfreight demand has dropped 8% to 10% since the spring of 2022 due to a slowing global economy, inflation, high retail inventories and the end of ocean shipping backlogs. Meanwhile, available shipping space on aircraft is about 10% higher than a year ago and 4% more than before the COVID crisis. Growth in cargo capacity associated with the comeback of international passenger flights, combined with weak demand, has led to a 45% fall in freight rates and similar declines in airlines’ cargo revenue. With less stuff to haul, flight activity for dedicated cargo aircraft is down 4.5% on average over the past 12 months, according to BMO Capital Markets.

The reduction in operating efficiency is compounded by the presence of more freighters. Cirium data shows there are nearly 2,200 dedicated cargo jets in service now, 5.6% higher than at the end of 2022 as the number of new entrants outpaces retirements.

The air cargo sector is likely to stay near the bottom of the freight cycle for another year, but Boeing projects robust demand for dedicated cargo jets will continue due to e-commerce growth and changing supply chain networks.

Boeing’s commercial market outlook, released in June, shows the global freighter fleet growing by 65% to more than 3,700 in 2042. The increase will require more than 2,825 production and converted freighter deliveries, including about 1,300 standard-body conversions, such as the 737-800, and 555 widebody conversions. The number of deliveries inched up from 2,795 in Boeing’s previous cargo forecast in November.

The fleet outlook is partly based on a projection that world trade will more than double over the next 20 years. Boeing also revised its annual growth rate for cargo traffic to 4.5% from 4.1% because the 2022 decline lowered the forecast’s baseline.

Conversion slowdown

Most concerns about freighter oversupply focus on standard-size jets like the 737-800 and the Airbus A321. The number of conversions for small, standard-size jets exploded during the past three years to unprecedented levels.

Many planes are going to startup airlines or freighter operations born out of the high demand for freighter capacity during the pandemic, when e-commerce sales shot through the roof and passenger belly capacity evaporated. Brazil-based Gol, for example, launched a 737-800 freighter division last year to fly packages for an e-commerce retailer. Pure leasing companies made more speculative investments in conversions than usual when airlines were bleeding money and eager to reduce their fleets.

In April of 2020 there were 12 737-800 converted freighter operators with a total fleet of 30 aircraft. Three years later, the number of operators had more than quadrupled to 51 with 147 converted planes added to the global fleet, according to research by freighter consultant Stephen Fortune.

And more companies have moved into that space since the spring. Mexico-based startup Awesome Cargo, for example, plans to add two 737-800 by the end of the year, according to trade publication and consulting firm Cargo Facts

Retrofit shops are busy working through existing order books, but the soft market is taking a toll on new orders for aircraft conversions. Aftermarket programs received 251 orders last year, but activity began to decelerate in the second half, Cargo Facts reported.

“Demand for 737-800 conversions has slowed to a trickle and is mainly coming from operators. Lessors continue to have a difficult time placing converted -800s, which is causing them to pause their programs until the market returns. To complicate matters the [narrowbody] engine market is red hot. Prices have gone up 30% from a year ago, which makes finding a freighter engine almost impossible,” said Robert Convey, senior vice president for sales and marketing at Aeronautical Engineers Inc. (AEI), an independent firm that offers aftermarket conversion kits.

AEI only booked a handful of orders in the first half of 2023 compared to more than 30 last year. “Customers are either trying to cancel or at least push out the start date in hopes the market will return,” Convey told FreightWaves.

Orders for factory freighters have also dried up. Boeing recorded 43 net orders in 2022 (minus two cancellations from bankrupt Western Global Airlines) versus six 777s so far this year, according to the company’s online database.

So far more conversion commitments have been deferred than canceled. The only publicly announced cancellation has been from all-cargo operator Cargojet, which is in the process of selling three used Boeing 777-300 passenger jets, originally purchased for conversion, to maintain financial flexibility and align fleet size with demand. A planned fourth aircraft was never purchased.

The airline is holding on to reservations for production slots at Israel Aerospace Industries so it can quickly resume expansion plans if demand improves. Executives said they are still proceeding with U.S. startup Mammoth Freighters for four Boeing 777-200 passenger-to-freighter conversions.

FreightWaves also reported that Vietnam Airlines quietly pulled out of a deal with Air Transport Services Group for two A321 converted freighters. ATSG’s management said on a recent earnings call that the company is purchasing two fewer A321s than anticipated.

An April report by Fortune, whose long background in aircraft acquisition and management includes stints at FedEx and the former Gemini Air Cargo, showed that lessors had placed less than half of their 737-800 and A321 conversion orders for 2023 with customers, leaving 49 aircraft without a home.

It can take four to eight months to reconfigure an aircraft for cargo, depending on size and the number of available repair bays for particular aircraft types. And conversion shops are having difficulty completing jobs because of supply chain backlogs, personnel shortages and slow regulatory approval of new modification designs, which actually works in favor of buyers that don’t need aircraft right away.

AerSale, an aftermarket aircraft services company, in June downgraded its full-year outlook for passenger-to-freighter (P2F) conversions to three sales and three leases, compared to its prior forecast of six sales because of the soft cargo market.

“Cargo operators currently suffering from reduced demand and an associated lack of liquidity has tempered the sale of our P2F converted 757s and will likely result in a heavier mix of leases versus sales in the near term,” said CEO Nicolas Finazzo on the company’s Aug. 8 earnings call.

The 757 is a large narrowbody plane admired for hitting the economic sweet spot in terms of capacity, efficiency, ease of loading and reliability. It is nearing the end of its conversion life because there are few qualified passenger aircraft left.

Mike Stengel, principal at AeroDynamic Advisory, projected the number of conversions will top out at 136 this year before starting to decline in 2025 and 2026 — but still above pre-COVID levels. Activity will be bolstered by the addition of more production lines, especially in the widebody segment, as two overhaul specialists, including Mammoth, launch first-ever programs for turning large 777 jets into freighters, he said.

Narrowbody glut?

IBA recently estimated that up to 60 737-800 converted freighters could be produced this year, up from 56 in 2022, creating a risk for a large oversupply if the trend continues. The forecast doesn’t extend beyond this year.

Fortune has warned of a short-term glut in standard freighters since early 2022.

There are seven 737-800 freighters available for lease or purchase on MyAirTrade.com, which suggests the planes aren’t being placed as quickly as they once were.

IBA’s analysis notably shows that the 737-800 has been converted at a faster rate than other cargo retrofit programs. The global fleet of 737-800 converted freighters has rapidly grown to 200 aircraft since the first modification by Boeing six years ago — about 50 of them by AEI. By contrast, it took the 757 and 767-300 conversion programs 15 years to reach the same size. The 737-400 took 20 years to reach 200 units.

The total 737-800 fleet is on track to surpass the 757-200 freighter fleet of 311 aircraft.

Meanwhile, IBA projects Airbus will deliver 20 A321 passenger-to-freighter aircraft this year. The A321 conversion program is trying to catch up with the 737-800, which had a three-year head start and the advantage of Boeing’s extensive cargo history compared to the new focus at Airbus. A positive factor is a large potential feedstock of relatively late-model A321s for cargo as passenger airlines seek out more efficient A321neos.

A drop in lease rates, especially for older variants, illustrates the caution being exhibited by cargo operators.

A321 leases have fallen below $200,000 per month this year after a couple of years well above that market, but aircraft with only about 15 years of age can command tens of thousands of dollars more, depending on the perceived risk of the operator and country location, IBA said. Monthly lease rates for the 737-800 have contracted to about $160,000.

The situation is different in the widebody freighter sector, where Crabtree said there is under capacity because some combination carriers pulled back from investment more than a decade ago when the air cargo market stagnated for several years.

767-300 conversions continue to lead in the widebody category, but the pipeline of available passenger jets is getting thinner. That is why Air Transport Services Group, which operates two cargo airlines and passenger charters in addition to being a major lessor, has branched out to acquire and convert the Airbus A330. Airbus resuscitated its A330 modification program about three years ago and ATSG reserved 29 production slots. The first plane is scheduled to begin remodeling in October.

IBA estimates 18 to 20 A330s will eventually be converted per year between Airbus affiliate EFW and Israel Aerospace Industries, overtaking the 767s. Lease rates have ticked up to about $450,000 as the programs gain traction, especially for younger A330-300s with extra volume suited for express parcel business. A 767-300 lease costs between $220,000 and $300,000, with the higher range reserved for aircraft under 20 years of age.

No replacement aircraft are available until Airbus and Boeing start delivering the large A350 and 777-8F, respectively, in 2026 and 2027. Boeing must stop production of the legacy 767 and 777 freighters at the end of 2027 to comply with international noise and emissions standards, although executives have said they will appeal to the U.N.’s civil aviation administration for an exemption.

But Kristian Lindberg, head of finance at aviation investment firm Stratos, during a June webinar hosted by Cirium’s consulting arm, suggested that even widebody freighters might not make the best short-term investment because the rental spread versus a passenger jet has narrowed by more than two-thirds to a mere $100,000, notwithstanding the $20 million, or more, cost to convert a large plane for cargo.

Challenges sourcing aircraft

By the time cargo demand improves again, conversions could be constrained by limited feedstock related to the gyrating passenger sector.

Passenger airlines are coveting standard-size aircraft, such as the 737-800 and Airbus A320/321, because manufacturers Boeing and Airbus have severe production issues that are slowing delivery of aircraft the carriers want to grow their fleets during a travel boom.

Boeing, for example, recently discovered a supplier defect on bulkheads that will potentially delay delivery of hundreds of top-selling 737 MAX jets. It’s the latest in a series of quality flaws Boeing has disclosed on the MAX and other programs as it gears up production capacity. And current delays follow three years when more than 2,500 aircraft were not delivered because of COVID and MAX safety problems.

High passenger demand is leading airlines to extend leases, or enter into new lease deals, for several years, reducing the available supply of used jets for conversion and driving up aircraft values on the secondary market. That  helps lessors because aircraft that otherwise might have been removed from service, or seen diminished value, are more marketable. At the same time lease rates for freighters are coming down. Aviation experts say it makes more financial sense for leasing companies to rent their planes in the passenger market because they can make more money without incurring the cost to convert an aircraft.

“Lessors may now opt for a cabin refresh and put the plane back in service for another six or seven years with a second-tier operator, or it may even be a first-tier operator,” said Crabtree. “Why cut a cargo door if you can repeddle the asset for another five to eight years?”

Some lessors may be better off canceling cargo overhauls until production issues are resolved, Lindberg concurred.

“It’s potentially not worth converting the 737-800 and incurring the additional cost — $5 million to $6 million for conversion — because the passenger demand is so strong that lease rates have been coming up more than $10,000 in the past year,” he said.

E-commerce upside

The strongest tailwind for long-term air cargo growth is e-commerce, which has more than doubled its share of retail sales over the past seven years and is projected to account for a fifth of total sales by the end of this year, according to eMarketer. By 2026, e-commerce, which heavily relies on air express delivery networks to fulfill orders, is estimated to grow to 23% of all retail sales.

Growth of online sales is decelerating from its peak of 17% early in the pandemic to 8.2% in 2026, eMarketer predicts. But that is three times global GDP growth and twice the expected growth rate for general air cargo.

Over the next two decades, express fleets are expected to grow 58%, according to Boeing.

Manufacturers and lessors say online shopping has fundamentally improved growth prospects for air cargo, with much of the demand coming from new express networks in Southeast Asia, Latin America and other developing economies. The e-commerce share of total retail sales is less than 4% in India and 5% in Brazil – both massive markets. Airbus, for example, projects air volumes for the express sector will grow 4.9% annually, significantly higher than its projection for general air cargo.

“Those [parcel carriers] need a certain amount of critical mass — routes and aircraft into the hubs to support these overnight or second-day air networks. So the emergence of e-commerce in these economies is a structural driver of demand, not just a cyclical one,” said Darren Hulst, Boeing’s vice president of marketing for commercial airplanes, on a recent episode of the “Time on Wing” podcast.

Executives at ATSG, which operates two cargo airlines in addition to being a major lessor, are steadfast in believing that rapid fulfillment of e-commerce purchases via air express networks will persist for the long term and drive demand for converted freighters.

Michael Steen, the chief executive of all-cargo operator Atlas Air, said e-commerce will continue to turbocharge interest in freighter aircraft because online sellers need to quickly adjust their distribution activity in response to customer preferences.

“The supply chain is changing to cater more to the end consumer, which means that it’s very hard to predict where you keep your inventories, and how much, depending on what the purchase cycles look like. New companies are popping up in fast fashion that are not selling through stores,” he said in an onstage interview Tuesday at the U.S. Chamber of Commerce’s Global Aerospace Summit here. “And the majority of that is airfreight based, even for low cost products. That is a significant change from what we have seen in the past.”

Meanwhile, many companies are geographically diversifying their supply chains to increase resiliency after the pandemic upended economic activity and shipping capacity, resulting in factory stoppages and retail shelves that were out of stock. It’s unclear how new sourcing and logistics requirements will play out. Some believe they increase the need for air cargo, especially at the start while businesses are still establishing their full complement of new suppliers, warehouses and surface transportation networks. Others say pressure to decouple from global trade, nearshoring and rising geopolitical tensions pose a risk for air cargo growth.

Fleet renewal

Even if the cargo market doesn’t grow, aging fleets need to be replaced. Airlines pulled freighters out of long-term storage and delayed retiring other planes to meet soaring demand during the pandemic, with many aircraft flying 20% to 30% more hours than normal per day. Only 15 planes per year were retired during the three years of the pandemic compared to a normal average of about 70, according to Cirium.

Last year, 38 cargo jets were retired compared to 131 at the peak in 2010, IBA said.

With the market back to equilibrium, carriers are beginning to sideline older, expensive-to-operate cargo jets, especially as they come up against major maintenance checks.

Steen said there are about 650 widebody freighters currently in service and 125 of them are older than 30 years. Many more are nearing retirement age, while more than 700 older technology standard aircraft with an average age of 30 years are still in service, Cirium recently reported.

UPS, for example, has begun phasing out 41 legacy MD-11 freighters that will be replaced by 28 new Boeing 767-300s. FedEx Express retired 18 aircraft in the just-completed fiscal year: 12 MD-11s, four Boeing 757-200s and two Airbus A300-600s.

“I think that we will see a faster decline in supply than we will see an ability to replace that capacity” in the widebody segment, Steen said.

Changes in belly capacity

Structural changes in the passenger market, beyond the short-term dynamics, could also increase interest in freighters. Market share for single-aisle aircraft, which provide less room for cargo, has increased with the growth of low-cost and ultra-low cost passenger carriers. In the past 20 years, the narrowbody fleet has increased from 9,000 to 16,200 aircraft, more than a third of which are operated by low-cost carriers. Boeing’s forecast anticipates the low-cost share rising to 41% of the single-aisle fleet by 2041.

As aircraft become more fuel efficient and smaller aircraft can fly longer distances, airlines are beginning to fill some trans-Atlantic and other international routes with extended-range planes such as the 737 MAX and Airbus A321LR instead of widebody aircraft.

Dedicated freighters and passenger aircraft carried an even split of cargo prior to the pandemic, but the balance now tilts 60% toward cargo aircraft because they  offer guaranteed capacity for logistics and airfreight companies that want greater control over shipments without being constrained by passenger requirements.

Less than 50% of the available belly capacity worldwide is actually used for freight because many new routes go to leisure destinations instead of industrial centers and more deployment of capable narrowbody aircraft, Steen noted.

“So, I think we’re looking at the scenario where we will see demand coming back and supplies [of aircraft] can be challenged,” he said.

Click here for more FreightWaves stories by Eric Kulisch.

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F3: Future of Freight Festival

NOVEMBER 7-9, 2023 • CHATTANOOGA, TN • IN-PERSON EVENT

The second annual F3: Future of Freight Festival will be held in Chattanooga, “The Scenic City,” this November. F3 combines innovation and entertainment — featuring live demos, industry experts discussing freight market trends for 2024, afternoon networking events, and Grammy Award-winning musicians performing in the evenings amidst the cool Appalachian fall weather.

Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. In December 2022, he was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at [email protected]

Overall, the aerospace market is entering a multi-decade upgrade cycle centered on fuel efficiency, SAF adoption, and regional growth led by Asia-Pacific, with established OEMs best placed and new entrants scaling from strong home markets.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.