INDUSTRY FORECAST ANALYSIS 1
BoeingCompany World air Cargo Forecast provides a comprehensive and up todate overview of the air cargo industry. It identifies major trends,main air trade markets and presents forecasts for the futureperformance and advancement of markets as well as the worldfreighters airplane fleet. In this case, world air cargo hasstruggled to maintain sustained Global Market growth and the ultimatedemand for aircraft.
TheBoeing current market outlook is one of the mainly published andaccurate forecast analyses in the aviation industry that are used toshape the company’s product strategy, which guides the long-termcompany plans and development. It also aims at sharing their viewswith the public, suppliers and the financial partners of theindustry. Similarly, the long-term forecast for the Boeing Companyfocuses on passenger and cargo traffic as well as the total number ofairplanes that are required to support and maintain the globalexpectations.
Asfor years in review for the aviation industry, for instance the year2016 was marked an outstanding year for Boeing Company, in that thekey metrics rose across the board and the trend is expected toprogress in the coming years (Wensveen et al, 2016). On the otherhand, with sustained low oil prices is estimated to save the industryfor about ten billions of dollars in this year 2016. According to theInternational Air Transport Authority, the passenger traffic wasexpected to accrue revenue of up to 7.4 percent and a capacity ofabout 6.8 percent of more than 80 percent record from the worldwideaviation industry.
Dueto low oil prices and some development inefficiencies, the Boeing AirCargo Airlines estimated a net profit of 35.3 billion dollars for theyear 2015-2016 which is also a great year of airplane manufacturersuch as Airbus and jet planes where over 1400 were delivered.
Theoutlook incorporates the impacts of market forces on the developmentof the aviation industry. This is based on the past and futurerecords where the world growth domestic product is projected to riseat a 2.9 percent annually over the next 15 years and during thisperiod the passenger traffic is expected to grow by 5 percent andair cargo transportation by 4.5 percent. To improve air cargoeffectiveness, the industry is targeting to cut the average transitstimes by up to 48 hours by the same period (Wensveen et al, 2016).
Inmy opinion, I believe the forecast is accurate in that the AirbusGlobal Forecast offers forward-looking and current trend views of theair transport industry’s evolution, which account for variousfactors such as economic growth, oil prices, and development of newand existing routes. Similarly, the forecast, in the long run,illustrates the demand for aircraft which covers the full range ofaviation industry.
WillBoeing be able to attain over 39,000 airplanes that value at morethan 5.9 trillion dollars over the next 20 years? In this case, theaviation industry is becoming more diverse, therefore, development ofnew airplanes manufactures and additions of this will be deliveredacross all parts of the world appropriately. Therefore, Boeing hasalways built tomorrow’s airplanes today.
Conclusively,the Boeing World Air Cargo Forecast and the long-term market outlookis a professional report and in-depth research on the world’sregional market conditions of the aviation industry that focuses onthe current market outlook for Boeing Company across the regions suchas America, Europe and Asia. This also introduces industry chainoverview, policies, product specifications and manufacturingprocesses.
Wensveen,J. G. (2016). Air transportation: A management perspective.Routledge.