Fuel Prices Will Force Airlines To Switch To More Efficient Planes

We're betting that rising fuel prices will mean big business for commercial aircraft manfacturers. That's the word from Boeing, which predicted this week that over the next 20 years, airlines will rush to replace their older and less-fuel-efficient planes at a faster rate than ever before.

In fact, Boeing says that in that time, carriers will replace more than HALF of the existing worldwide fleet -- 9,580 jets, out of over 17,300. That's an increase of 1,400 planes over Boeing's forecast last year -- and, it's not hard to see why, with jet fuel topping record highs in recent days.

Boeing admits, however, that there is a potential flaw in its reasoning -- and that's if ever-rising airline fares cause the market to bottom-out, reducing the number of planes needed.

So far, airlines have weathered the added fuel costs relatively well -- by raising fares to match the rising costs of Jet-A. Passengers are still packing the planes.

But there may come a price point that will discourage passengers from flying... and if that happens, Boeing says, all bets are off.

FMI: www.boeing.com