EXECUTIVE INTERVIEW

Bernard Dunn,
President, Boeing Middle East, North Africa and Turkey


How much of Boeing’s business comes from the Middle East? How important is it to you globally?
 
The Middle East is an extremely important market to Boeing across all our businesses (Commercial, Defense and Services). We’re very proud of the relationships we’ve built here over the last 74 years and we’re committed to continuing to strengthen our partnership.
 
Boeing has a sizable market share in the Middle East. Today, there are over 725 Boeing commercial airplanes operated by regional customers and we have about 650 in backlog. Overall, our commercial airplane backlog is diverse and well distributed around the world. Of   our more than 5,700 airplanes in backlog, about 12 percent is with Middle East carriers. 
 
Our international defense opportunities are growing – International orders based on backlog currently represent 31% of Boeing Defense, Space & Security’s business and there is continued opportunities for growth, particularly in the Middle East and the Asia Pacific regions. 
 
Global Services provides tailored, affordable sustainment programs for customers around the globe, including the Middle East. Services efforts and investments span commercial and government products and platforms, regardless of platform manufacturer. 

What are your predictions for aerospace in the Middle East in terms of growth, challenges and opportunities?
 
Every country in this region have strong visions dedicated to diversifying their economies, developing their workforce, protecting their citizens, improving infrastructure and more; Aerospace will continue to play an important role in the region’s growth story and Boeing has every intension to be their partner on this journey. 
 
Commercial Aviation remains strong. In fact, the industry has now recorded nine straight years of steady and above-trend growth. That growth will continue with the air travel market expected to be 2.5 times larger in 20 years. The Middle East market is no exception. 
 
Over the next 20 years, Boeing forecasts that the Middle East will need 3,130 new airplanes valued at $725 billion with commercial services market worth $790 billion over the next 20 years
 
The fastest growth in the Commercial Services Market will occur in Asia Pacific, Middle East and Africa. In fact, the Middle East Market will grow nearly twice as fast as North America, driven by interior modifications as the airlines compete for business and try to capture ancillary revenues. Boeing estimates the Services market (Commercial and Defence) in the Middle East to be worth $225 billion over the next 10 years.
 
Boeing Defense, Space & Security solutions span from the KC-46 tanker, to the long-range maritime surveillance capability on our P-8 aircraft, to autonomous systems. Our military aircraft, including vertical lift and tactical air platforms (AH-64 Apache, H-47 Chinook, T-X and the F-15) are highly sought after in the region bringing state-of-the-art capability and interoperability with the United States.

What are your focus areas in 2019/2020 and why?
 
We are focused on continuously improving safety, quality and productivity as we deliver on our commitments to customers around the world.  On the commercial side, we are focused on the safe return of the 737 MAX into service. We continue to invest in our development programs (737 MAX 7 and MAX 10, 777X) to further strengthen our market-leading product lineup and meet the evolving needs of our customers.  On the defense side, our mission is to provide our customers with the capabilities they need to protect and defend themselves. So we are working closely with Arab governments and defense forces to play a key role in enhancing safety and security across the region.
 
Boeing will also continue to invest resources to expand our reach and customer base across the region. We are in the unique position to offer solutions that are purposefully built for our Middle East customers that enables exploration, connectivity and mission readiness. That also means forming strategic partnerships that supports the region’s aerospace services expertise. 
 
Sustainable aviation fuel (SAF) is a key focus for us. The industry estimates it’s possible to supply 2% of aviation fuel demand by 2025 and production facilities to meet half of that volume have already been announced. We see this 2% as a tipping point that will signal solid market demand and spur further production.

How important is the Dubai Airshow to Boeing in terms of its Middle East presence?
 
The Dubai Airshow is a fantastic platform for us and others in the industry to connect with our customers and showcase the latest technologies, platforms and services. We have been participating in this show since the very beginning and we are looking forward to the show this November. 

How does your satellite and connectivity solutions help your customers achieve full information advantage? Can we expect to see any solutions displayed at the Dubai Airshow?
 
Our flexible satellites are adaptable to multiple use scenarios and changes in geographic distribution of user demand. The scalable, flexible 702 product line is an orbit-proven platform that cost-efficiently serves a wide range of commercial and government customers including here in the UAE. Customers also rely on Boeing for ground systems, network integration, satellite system operations and other services.
Boeing is leveraging cutting-edge digital and analog technologies, along with advanced manufacturing processes, in our phased array platforms to achieve the flexibility, performance and cost targets required by these systems and to better serve the needs of our customers. Boeing digital payload technology allows satellite fleet operators or combat commanders to derive greater bandwidth through frequency reuse and more precisely tailor coverage patterns as their mission needs evolve.

How is Boeing addressing the Future of Mobility?
 
Boeing is building the future of on-demand passenger and cargo air mobility, with the goal of safely increasing transportation bandwidth, time savings, and affordability in the years ahead. In 2018, we launched Boeing NeXt, a business division building the ecosystem that will define the future of urban, regional and global mobility. Boeing NeXt is driving the company’s approach to next-generation airspace management and global airspace integration, working in partnership with regulatory agencies and industry partners to ensure a future where autonomous and piloted air vehicles safely coexist. 
 
Boeing is making bold bets in this new aviation frontier. Boeing subsidiary Aurora Flight Sciences is producing a VTOL aircraft. The PAV – Passenger Air Vehicle completed its first hover test in January 2019 and is expanding its flight envelope throughout the rest of this year. The Cargo Air Vehicle, an eVTOL vehicle, is similarly undergoing test flights this year. Boeing is also investing in enabling technologies to support aerial ridesharing at scale. Together with partner Spark Cognition we are actively developing SkyGrid, a next generation aerial operating system powered by artificial intelligence for next-generation air travel and transport.
 

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