Sales Still Forecast To Be $210.6 Billion

US aerospace companies may expect sales to climb six percent in 2008, according to the Aerospace Industries Association... a slower growth rate than in 2007, when sales climbed nearly nine percent over the previous year.

In the group's annual year-in-review and forecast report, AIA projects sales of $210.6 billion for commercial and military planemakers -- with the global need for passenger airliners fueling the industry.

That would continue a trend seen in 2007, reports The Associated Press. AIA estimates sales in 2007 at $198.8 billion, over $92 billion of which came from sales to foreign customers.

By comparison, US carriers -- still reeling from numerous forays into bankruptcy and high fuel prices -- will likely continue to exercise caution in placing significant orders for airliners, despite a booming travel market and full planes.

"On the commercial side, there's never been this kind of disparity before," said Teal Group analyst Richard Aboulafia.

"There is pent-up demand among the domestic carriers for aircraft," AIA President and CEO Marion Blakey told the AP. "They have not stepped in to modernize their fleets the way international carriers have."

Over on the military side, AIA forecasts a decline in sales for 2008... due not to declining demand for military hardware, but rather uncertainty over funding for such aircraft in the US military budget, and delays to several high-profile projects.

Sales of military aircraft rose 11 percent to $54.8 billion in 2007, up from $49.8 billion last year. That figure is expected to decline 4.7 percent in 2008.

FMI: www.aia-aerospace.org/stats/yr_ender/yr_ender.cfm