1 / 33

Boeing’s Outlook on Emerging Air Cargo Market January 24, 2008

Boeing’s Outlook on Emerging Air Cargo Market January 24, 2008. Dr. Dinesh Keskar Senior Vice President – Sales, Boeing Commercial Airplanes. Agenda. World Air Cargo Forecast India Cargo Market Boeing Freighter Products Summary.

kayla
Download Presentation

Boeing’s Outlook on Emerging Air Cargo Market January 24, 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Boeing’s Outlook on EmergingAir Cargo MarketJanuary 24, 2008 Dr. Dinesh Keskar Senior Vice President – Sales, Boeing Commercial Airplanes

  2. Agenda • World Air Cargo Forecast • India Cargo Market • Boeing Freighter Products • Summary

  3. World Air Cargo Grew 5.1% in October 2007 Relative to Traffic Levels of October 2006 Monthly Percentage Change Over Prior Year Sources: U.S. Department of Commerce, AAPA, AEA, ATA and the Boeing World Air Cargo Forecast.

  4. High Base Low World Air Cargo Traffic Is Expected To Triple Over the Next 20 Years RTKs, billions History Forecast Average annual growth, 2005 to 2025 High 6.9% Base 6.1% Low 5.3% 5.1% growth per year YEAR

  5. World Air Cargo Traffic Will Triple, and Asia Will Lead Industry Growth Europe-Asia: 6.9% Average Annual Growth through 2025 Asia- North America: 7.1% Average Annual Growth through 2025 Intra-Asia: 8.6% Average Annual Growth through 2025 As intra-Asia, Transpacific and Europe-Asia routes will lead growth, the market will increasingly demand long range, low tonne-kilometer cost service.

  6. In-Service Freighter Fleet will Double–With a Shift Toward Widebody Freighters Large (>80 tonnes) Medium widebody (40-80 tonnes) Standard-body (<45 tonnes) 2026 2006 1,980 freighters 3,980freighters

  7. Freighters Will Remain ~11% of the World’s Jet In-Service Fleet in the Future Y2006 Y2026 Freighters Freighters 18,230 Airplanes 36,420 Airplanes

  8. Future Deliveries of New Aircraft2007 - 2026 Large2% LargeFreighters72% Freighters3% MediumWidebody26% Standard-body 2% Total: 28,600 Total: 870

  9. Freighter Fleet Growth Forecast Thru 2026Nearly Three-Quarters Will Be Converted Units Freighter aircraft, units New freighters Fleet additions, 3,350 units Conversion market Current/retained fleet ~630 units

  10. Future Freighter Deliveries New and Converted 2007-2026 Standard-body (<45 tonnes) Medium widebody (40-80 tonnes) Large (>80 tonnes) Standard-body 1,290 total 630 new Large 1,090 total 1,270 converted 460 converted 220 new 20 new 750 converted Medium Widebody 970 total Total 3,350 Units (2,480 Converted, 870 New)

  11. Asia Will Receive the Most Large Freighters Number of New and Converted Airplanes, 2007-2026

  12. India’s Cargo Market

  13. India GDP growth has averaged well over 6% over the last 10 years Actual Forecast Source: The Economist

  14. Increased Twin Aisle Deliveries to India Will Boost Belly Cargo Y2007 - Y2026 *In year 2006 dollars Catalogue Prices Source: Boeing Current Market Outlook 2007

  15. Scheduled International Indian Air Cargo Traffic Has Grown 9.9% per Year Over the Last 5 Years Metric tons (tonnes) enplaned, thousands Source: Statistical Division of the Director General of Civil Aviation, India Source: Statistical Division of the Director General of Civil Aviation, India

  16. Europe, Far East Asia and the Middle East Comprise India’s Three Largest Scheduled Cargo Traffic Flows Metric tons (tonnes) enplaned, thousands & historic five-year growth rate, percentage Europe to India: 122.8 / 7.3% India to Far East Asia: 87.9 / 8.7% India to Europe : 187.3 / 7.3% Far East Asia to India: 121.3 / 18.7% Middle East to India: 57.1 / 17.9% India to the Middle East: 151.1 / 6.0% Source: Statistical Division of the Director General of Civil Aviation, India, Financial Year 2005-2006 data. Non-Scheduled (charter) and sea-air traffic NOT included.

  17. Leading Indian Air Cargo Airports The size of the Indian international and domestic air freight market in 2006 was estimated to be ~1,500,000 tonnes, up about 10% from 2005. Leading air freight airports in terms of tonnage were: Mumbai: 478,600 Delhi: 398,437 Chennai: 233,769 Bangalore: 165,406 Kolkata: 83,528

  18. Tonnes, thousands Forecast History Average annual growth, 2005 to 2025 High 10.0% Base 9.1% Low 8.1% High Base Low 12.5% growth per year Domestic Indian Air Cargo Traffic Will Expand at 9.1% per Year, Although from a Small Base

  19. Private carriers are leading the way in cargo carried Source: India DGCA

  20. Current India Freighter Fleet In-Service Freighter Fleet Consists of 12 Aircraft Source: AirClaims reported as of Nov 14, 2007.

  21. Boeing Offers Freighter Solutions For Every Market

  22. Record Freighter Orders Boeing freighters sets third consecutive record sales year 2005 2006 2007 83 81 74 Note: Orders reflected are net orders for the year.

  23. 136 (300) 91 (200) 45 (100) 0 Boeing offers a complete line of freighters to meet the market needs Revenue payload 1,000-kg (1,000-lb) Boeing Airbus 747-8 F A380F* 747-400F/-ERF 747-400BCF 777 Freighter MD-11BCF A330-200F 767-300F A300-600F 767-300BCF A300-600P2F 767-200SF A310P2F 757-200SF 737-700C • Revenue payload does not include tare weight. • * Boeing assessment.

  24. The 777 Freighter - Widebody Freighter With Twinjet Economics Carries Industry-standard 3-m High Pallets and 159 kg/m3 Density Cargo Medium-largesize offers low risk Quiet for nighttime departures Large CargoDoor 103 Tonnes Max Structural Payload Long-range Capability

  25. 777 Freighter Customers and Firm Orders 5 8 6 8 5 15 14 6 Unidentified Customers 6 2 5 2 82 firm orders from 12 customers worldwide • As of October 31, 2007.

  26. The 777 Freighter delivers • 103-tonne (226,700-lb) revenue payload capability • The longest range twin-engine freighter • Lowest trip cost of any large freighter • 19% to 40% fuel per tonne advantage over today’s freighters • High commonality with 777 passenger airplanes • Mixed-fleet flying potential with 747 and 787 • Same airport infrastructure as 747F • Capable of hauling “real world” densities • Meets Stage 4/QC2 noise regulations 797-WD-0261 8-24-5-CF/JW

  27. 747-8F: The right choice for the large freighter market 747-8 747-400 • Proven Market Leadership • New revenue opportunities • Lowest tonne-mile costs of any freighter • Key commonality with existing fleets • Environmental benchmark for large freighters BOEING PROPRIETARY BOEING PROPRIETARY

  28. 9 out of the Top 10 World Air Cargo Carriers Use 747 Freighter Aircraft Building on the Proven Performance of the 747 Freighter These top carriers represent more than one-third of world air cargo traffic Source: International Air Transport Association, company reports, Air Cargo World research

  29. Boeing Widebody Freighter Performancemax design range at structural limit

  30. Boeing Converted Freighter:much more than a conversion • Boeing freighter airplane Created from production-passenger and production-freighter airplanes—by the same OEM team Based on experience of hundreds of conversions Conforms to Boeing standards—engineering, product integrity and safety, certification, program management, and support • High-quality, low-risk, on-schedule execution Boeing management and commitment World-class supplier-partners Proven track record • Operational flexibility Fully integrated data and manuals Payload-range advantages • Seamless global in-service support Support network for the whole airplane Spare parts commonality with production freighter

  31. 747-400BCF customer status 6 2 firm 3 5 firm 4 4 firm 4 3 firm* 4 3 firm 3** 1 3 firm 2 firm** 25 23 In ServiceOn Order * 2 combis ** combis Data as of December 31, 2007

  32. Summary • World air cargo growth was accelerating in 2007 and grew nearly 5% • The world freighter fleet will nearly double to 3980 aircraft by 2026, primarily led by widebodies • Markets connected to Southwest Asia will expand from 6% to 6.5% per year while domestic India will expand 9.1% per year over the next 20 years • India is projected to have leading GDP going forward enabling great opportunities for cargo market growth • Over 90% of worldwide freighter airplane capacity is flown by Boeing aircraft • Boeing offers the most comprehensive freighter solutions to meet varying market demands

More Related