Boeing sees $300b business in ME 

(MENAFN - Qatar News Agency)  Boeing sees tremendous prospects for the airline industry in the Middle East over the next two decades with the need for about 1,710 commercial jets. The Chicago-based aircraft manufacturer's 2009 outlook valued the region's market at $300bn over a 20-year period,according to the Gulf Times newspaper Sunday.

Boeing told Middle East bankers and financiers in Dubai this week that air travel in the Middle East is stronger compared with most other regions amid the crisis affecting the global economy. It would create good opportunities for investors interested in aircraft financing, the company said. "Air travel in the Middle East continues to grow, although more slowly than it has in the past. In fact, the region was the only part of the world to see passenger traffic growth during the current downturn. This is clearly a positive sign at a time when the industry is generally contracting," said John Matthews, managing director for the Middle East and Africa at Boeing Capital Corp., the aircraft manufacturer's customer financing unit. Matthews hosted Boeing's 5th annual Financiers and Investors Conference for the Middle East and Africa region held in Dubai. The company presented its view of current global aircraft financing market conditions and provided updates on its commercial aircraft programmes, including the new 787 Dreamliner.

Boeing noted that current market conditions create 'better opportunities' for aircraft investment, as there is 'less competition' in aircraft financing market. "There are great opportunities available for people with capital who are willing to invest Financiers willing to take advantage of the short-term market dislocations with a view toward creating a long-term aircraft portfolio should find themselves generously rewarded, as aircraft remain a great asset," Matthews said. Boeing also reported that, based on experience to date, it accurately predicted that global aircraft financing resources would be adequate to support 2009 deliveries.

"Predictions that there would be a financing gap of tens of billions of dollars to be filled by manufacturers have not come to pass and market conditions remain manageable," said Matthews. Boeing estimated that it would only need to provide approximately $1bn in customer financing this year, and it currently expects to be below that figure. Middle East airlines also have benefited greatly from the export credit resources of the Export-Import Bank of the US. The bank, mostly through loan guarantees backed by US government credit, provides overseas airlines buying US jetliners an 'attractive financing alternative', particularly during periods of commercial market disruption like those currently. Boeing also believes that "aircraft are ideal for Islamic financing since a fundamental criterion is that such investments be asset-based," Matthews said