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Europe’s low-cost carriers to drive jet demand over next 20 years -Boeing By Reuters


© Reuters. FILE PHOTO A Boeing 737 MAX plane lands following a flight test at Boeing Field, Seattle, Washington. It landed on June 29, 2020. REUTERS/Karen Ducey//File Photo

LONDON (Reuters) – Planemaker Boeing (NYSE:) said that European low-cost carriers would help drive demand for new aircraft in the region over the next 20 years, as airlines replace their ageing fleets with more fuel-efficient jets.

Boeing stated Tuesday that they expect European airlines to purchase 7,100 single-aisle aircrafts. These planes are usually used for short-haul trips and will be ordered by Ryanair, a low-cost specialist.

According to Darren Hulst (Boeing vice president for commercial marketing), Europe’s plane demand will be driven more by low-cost airlines than anywhere else in the world.

According to a briefing, he stated that globally we forecast about 40% of single-aisle demand will be low cost carriers. But in the European market this figure could easily go higher.

Boeing anticipates that there will be demand for 1,545 more long-haul and widebody jets within Europe in the next 20-years.

Hulst anticipates that close to 3000 single-aisle aircraft will soon be needed in order to compete with Airbus’s A320s or A321s.

British Airways’ owner IAG (LON.) and Air France KLM both have their own low cost brands such as Vueling, Transavia and Transavia.

Ryanair in Europe was one of Boeing’s most important customers. The U.S planemaker ended negotiations with Ryanair in September over the new order of larger 737 MAX 10 Jets. These jets are worth several tens billions of Dollars due to price differences.

Hulst, Boeing’s spokesperson said Ryanair would be able to return for more if needed.

He stated that Ryanair would “continue to ensure that the 737 MAX 10 as well as other derivatives are available, which could help Ryanair win even more.”

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