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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (402)	6/19/1998 8:56:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

"Boeing says Asia to lead plane demand despite woes." NEW YORK, June 18 (Reuters) - Asia will place the largest orders for new aircraft in dollar terms over the next 20 years, but North America will order the most planes, Boeing Co. , the world's largest aircraft maker, said Thursday. Despite the economic turmoil in Asia, Boeing said airlines from Asian countries are expected to buy just over one third of the $1.25 trillion worth of new aircraft that the world will need in the next two decades, surpassing in dollar volume orders from North America and Europe. Boeing said China should lead the Asian market, buying 1,800 new aircraft worth $125 billion, followed by Japan, which should take in 810 new planes worth $92 billion. In all, countries in Asia are expected to buy 4,760 planes worth about $427 billion through the year 2017, according to Boeing's latest 20-year market outlook. Boeing said North America should remain the world's largest market in terms of the number of planes ordered, buying 5,580 new aircraft -- most of which would be smaller and cheaper than the new aircraft purchased by Asia -- with a total value of about $332 billion. The United States alone should make 5,200 of these new purchases, the company said. Boeing said its outlook is based on the assumption that economic problems in countries such as Japan and South Korea do not spread beyond Asia and expectations that economic growth in Asia will return to historical trends in four or five years. The outlook is also based on expectations that worldwide air travel will grow by 4.9 percent a year during the next 20 years. Boeing is expecting Europe to buy 4,990 new planes worth about $345 billion, with 780 of the new orders coming from Germany and 770 of the new orders coming from the United Kingdom. Latin America should buy 1,410 new planes worth $77 billion, the Middle East should buy 500 new planes worth about $45 billion and Africa should buy about 410 planes worth $29.5 billion, Boeing said. Boeing also said airlines are shifting to smaller aircraft because of competitive pressures, such as aviation agreements that have opened markets to rival carriers. To head off competition, airlines are offering passengers greater flexibility by offering more flights, rather than ordering larger aircraft making fewer flights. Boeing said seven out of 10 airplanes delivered during the next two decades are expected to be single-aisle airplanes -- such as Boeing 717s, 737s and 757s -- which would account for 43 percent of the dollars invested in new airplanes. Intermediate-sized airplanes -- such as Boeing 767s and 777s -- would represent one out of four future airplane deliveries and account for 44 percent of the dollars invested in new airplanes, Boeing said. Boeing's report estimates the smallest market segment will be 747-size or larger airplanes, totaling just 15 percent of the dollars invested in new jetliners. ((Wall Street Desk, 212-859-1730))