Business & Finance Club - Dubai: Boeing's relationship with the Middle East goes back more than 60 years. Investment in that relationship is paying off as the region is now one of the world's fastest-growing commercial aircraft markets.

Most Middle Eastern airlines — including Emirates, Etihad, flydubai and Qatar Airways — have Boeing aircraft on order. In fact, Emirates is the world's largest operator of the 777 with currently 86 aircraft in its fleet. It is also the only airline in the world to operate every type of this aircraft.

Gulf News asked Martin Bentrott, vice-president for Middle East and Africa sales of Boeing Commercial Aircraft, for an update. Excerpts from the interview:

Gulf News: How many aircraft has Boeing delivered to customers in the Middle East this year?

Martin Bentrott: To date in 2010, we have delivered 17 aircraft to our customers in the Middle East including five via leasing companies. This includes three Boeing 777-300ERs for Emirates and eight 777s of various types for Qatar Airways. The aircraft delivered to Qatar Airways include their first 777F, which is the world's longest-range twin-engine freighter. The first was delivered on 14 May, while the second was delivered on 9 June.

Boeing delivered the first 737-800 to Dubai Aerospace Enterprise (DAE) in September. Via leasing companies GECAS and Babcock and Brown, Boeing delivered two 777-300ERs to Egyptair and three 737-800s to flydubai. Boeing plans to deliver an additional 13 aircraft in 2010 to customers in the Middle East: five Alafco 737-800s, four flydubai 737-800s (including the first new Boeing Sky interior), two Qatar Airways 777-300ERs and two DAE 737-800s.

In which Middle East markets are you present? What types of Boeing aircraft are used in the region?

Our relationship with the Middle East goes back more than 65 years when President Franklin D. Roosevelt gave King Abdul Aziz Al Saud of Saudi Arabia a DC-3 aircraft as a gift in 1945, laying the foundation for one of the first national flag carriers in the region. Since then we've come a long way in the region. While we helped airlines enter the jet age in the 1960s, we now facilitate connections to virtually any city in the world from the Middle East.

The Middle East is home to an estimated 446 Boeing aircraft that represent every single type of jetliner we've built from the 1960s to date. This includes 707s, 717s, 727s, 737s, 747s, 757s, 767s and 777s. In fact, Emirates is the world's largest operator of the 777 with currently 86 aircraft in its fleet. It is also the only airline in the world to operate every single type of this aircraft. Emirates took delivery of its first Boeing 777, a 777-200, in 1996, and since then the airline has deployed the 777 on short, medium- and long-haul routes. In fact, the Boeing 777-200LR allows Emirates to fly ultra long-haul routes, such as Dubai to Los Angeles, without refuelling. We also have seven customers in the region who have ordered a total of 133 B787 Dreamliners

How many orders have UAE-based airlines placed in 2010 and how many of those will have to be delivered this year?

This year we have seen orders for 30 Boeing 777-300ERs from Emirates, which takes our total backlog with the airline up to 48. Similarly we have a backlog of 45 aircraft that will be delivered to Etihad Airways in the next few years. We also received orders for two 777-200LRs from Qatar Airways and three 787 Dreamliners from Royal Jordanian at this year's Farnborough Air Show.

What is Boeing's orders forecast for 2010?

We don't provide an annual forecast for orders. However, we estimate the Middle East will need 2,340 new aircraft valued at $390 billion [Dh1.43 billion] over the next 20 years for fleet renewal and growth. In terms of size, we project a market for 1,000 twin-aisle aircraft like the 787 and the 777, roughly 43 per cent of the total demand, and a market for 1,100 single-aisle aircraft like the Next-Generation 737, roughly 47 per cent. The demand for large-capacity aircraft accounts for 7 per cent, while regional jets with fewer than 90 seats account for about 3 per cent of the forecast demand.

Can you tell us what the major drivers for Boeing's business in the Middle East are?

Boeing has already established itself as a strong player in the region's commercial aviation market and our order book is proof of the ongoing confidence that leading regional airlines and leasing companies have in Boeing's wide product portfolio.

Private jets are a booming business in the Middle East. Does Boeing have a significant share of the market?

Boeing Business Jets [BBJ] has a long-standing presence in the Middle East and we continue to build on our relationships, and to increase awareness of our product line. We have a dedicated presence in the region, with sales and field service representatives based in Saudi Arabia. A regional spares centre is located in Dubai and we are a founding member of the Middle East Business Association (Meba).

This region represents the largest hub for 747s used by governments and private individuals. In addition, all of the 747-8 VIPs, 38 per cent of all BBJ orders have been placed in this region. Of the 487 business jets [all sizes, both ordered and in service] in the region, more than a quarter are Boeing jets.

The Middle East represents the largest combined market for BBJs [31 per cent] and our wide-body VIP aircraft. Of the 20 orders for the 787 and 747-8 VIP aircraft, 11 have been bought by customers in the region. We see continued growth in the region, and a large opportunity for sales.

Do you have any plans to manufacture some of your aircraft components in the Arab world?

Under our agreement with Mubadala Development Company, we intend to develop mutually beneficial initiatives in areas where there is strategic alignment between the two companies, including composite manufacturing, engineering, research and development, commercial maintenance, repair and overhaul, military maintenance and sustainment, pilot training and people development. We have focused our regional efforts in a way that allows us to better determine future opportunities that may arise.

Does Boeing have plans to launch a successor to the 747 that could be a competitor to the A380?

Boeing studied the market feasibility of a new 747 for some time, working with operators to establish their requirements for an incrementally larger 747 to continue the profitability of current 747 fleets. By working together with customers and applying the innovative new technologies of the 787 Dreamliner, Boeing created the 747-8 family. In fact, the designation 747-8 was chosen to show the technology connection between the 787 and the new 747.

The new high-capacity 747s offer the lowest operating costs and best economics of any large passenger or freighter aircraft while providing enhanced environmental performance. This latest family of 747 jetliners meets airline requirements for an aircraft that serves the 400- to 500-seat market.