Tomahawk, WI 9/25/2013 (BasicsMedia) – The Boeing Company (NYSE:BA) is not in a bad place right now. The company has stated that there is an increased demand for its aircraft from almost all corners of the globe. There are close to 17,740 airplanes globally but this number is expected to more than double in the next twenty years to 36,560 planes by 2032.  The monetary value of this increased demand is expected to reach around $4 trillion. This is good news for a major and global manufacturer of airplanes such as BA, which should benefit the most from this together with Airbus, its major competitor.

 BA Must Double Its Efforts to Meet New Demand

It may seem as if there is a long time to make this happen. But taking 20 years to double the current numbers of planes requires a lot of work. Companies such as BA and Airbus will require to almost double their efforts in order to meet this demand. This is even before considering that BA already has a backlog of orders which it hasn’t met. An example of how much time is needed to conceptualize and actually produce a plane is aptly demonstrated by the 8 years it took BA to make its 787 Dreamliner. BA was only able to produce this plane in 2011.

 The question, therefore, is whether this company will succeed to produce the planes which are needed to meet the ever growing demand. There is a strong belief that the increased demand is also fueled by the fact that more people are opting to use planes to travel from one location to the next in order to cut down on wastage of time. Secondly, more people are expected to see an increase in their income levels to an extent where they will be able to afford airplane tickets. BA will also benefit from increased demand for military aircraft by governments all over the world.

 Major Markets Driving Increased Demand for Aircraft

 The demand for new aircraft will be driven mostly by the Asia-Pacific market. This market will see an increase in its demand for new aircraft by almost 36%. This would be followed by the 20% increased demand in Europe. North America will see its demand for new aircraft from companies such as BA grow by about 19%. However, it is important to point out that these new orders are generally expected to be two-pronged. First, they will be aircraft being produced to replace already existing ones. They will also be to meet the growing demand for air travel.

 The growth of emerging nations or developing nations is expected to be much higher than that of developed or first world nations. This is yet another factor that will see an increase in the demand for new aircraft which is then expected to benefit BA more. Currently, the middle class makes up 32% of the entire global population. However, by 2032 this class of people will make up close to 62% of the world’s population. It is these factors which will lead to good financial returns for BA, which will be boosted only if the company is able to keep up with the production.

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