Says Asian Demand Is Improving The Bottom Line

Spurred by a jump in Asian business, Boeing Commercial Aircraft says it may raise its 2006 sales forecast.

"Demand is starting to increase rapidly," Lee Monson, Boeing Senior VP for Sales, said Saturday in Dubai, United Arab Emirates. "There is more demand than supply."

Asian airlines -- China Southern and Air India chief among them -- are growing at such a pace that Chinese airlines alone may need 1,790 new aircraft between now and 2023 (according to Boeing's forecast). Indian carriers may soon place orders for up to 570 more planes, as they become less regulated and begin flying more overseas routes.

Monson isn't tipping his hand on the exact forecast though. Instead, he anticipates selling "a little more" than the 375-385 planes already forecasted to be delivered this year. He wouldn't give Bloomberg the specifics on next years forecast.

Another strong growth sector: The Middle East. Boeing says it's in negotiations with Emirates Airlines in Dubai on the sale of 777s. Saudi Arabia's state line and Qatar Airways are also growing fast, adding routes and, therefore, will need new aircraft in the next few years, according to the Boeing forecast.

FMI: www.boeing.com