Includes Area In Current Market Outlook For First Time

Russia and the Commonwealth of Independent States (CIS) will require 1,060 new airplanes worth about $70 billion over the next 20 years, according to Boeing's updated annual forecast for the commercial airplane market.

The complete forecast, known as the Boeing Current Market Outlook, was released Wednesday. This year marks the first year that Boeing has published its forecast for the Russia/CIS region as part of the Current Market Outlook.

Airplanes in the Boeing 737 size range will account for 44 percent of all commercial jetliners delivered to Russian and CIS airlines during the next 20 years, amounting to 470 units valued at $30 billion.

Eleven percent -- or 110 units at a value of $20 billion -- will be twin-aisle airplanes like the Boeing 777 and 787.

Forty-three percent will be smaller regional jets while airplanes of the Boeing 747 size or larger will comprise 2 percent of the market.

"We will witness significant growth in the demand for air travel as the economies of Russia and the CIS continue to expand," said Craig Jones, vice president of Sales for Russia/CIS, Boeing Commercial Airplanes. "Both domestic and international air traffic has increased in Russia and the CIS by 36 percent over the last 10 years. Most indicators point toward continued economic growth for the region."

"We've already seen airlines like Aeroflot and S7 Airlines in Russia, AeroSvit in the Ukraine, Azerbaijan Airlines and Uzbekistan Airways order new single-aisle and twin-aisle airplanes this year. We can expect continued steady demand for new airplanes as airlines look to modernize and grow their fleets," Jones said.

"Liberalization of air traffic regulations, airline consolidation and the reduction or elimination of high tariffs on new airplanes could generate additional demand for new airplanes."

The flying public's demand for more point-to-point travel options will also stimulate demand for smaller airplanes. In the past, large airplanes like the 747 were the only airplanes able to fly very long distances. This forced large numbers of passengers to make connections through major hubs to get to their ultimate destinations, through what is called the hub-and-spoke system.

As smaller airplanes are much more fuel efficient thanks to advanced technologies and innovation, they are able to fly longer distances with fewer passengers than a 747 and still remain profitable for the airlines that operate them.

Those newer airplanes also help meet increased demand, Boeing says, while also lowering airplane emissions compared to older aircraft.

"Today aviation represents two percent of global emissions while contributing eight percent to the world economy. It's a small percentage, but nonetheless we are committed to continuing to find ways to reduce the environmental impact of our products," Jones said.

Air traffic within Russia and the CIS is expected to grow 6 percent per year over the next 20 years. Traffic on transatlantic routes between Russia/CIS and North America is projected to increase 4.1 percent annually.

Worldwide, Boeing estimates the fleet will require 28,600 new jets by 2026 worth about $2.8 trillion.

FMI: Read The Complete Market Outlook