ITA Announces Third Distinguished Speaker At Titanium 2012

Warner leads the business team developing Boeing's outlook of the airline industry and trends in the global market. Offering a preview of his remarks, Warner said international economic uncertainty would extend into 2013, driven by the European Union debt crisis.  In addition, volatile oil prices will continue to take their toll on the commercial aerospace industry. "Despite this economic uncertainty, passenger traffic has proven to be very resilient this year, growing at around 6 percent, year to date."

In a long-range business outlook, Warner said Boeing projects 34,000 new airplanes will be needed over the next 20 years, as the current fleet doubles in size.

"Boeing sees a strong demand for titanium products as we work through this extensive backlog and as the industry continues to demand new, efficient aircraft," Warner said. However, despite this robust business forecast, he noted Boeing feels the titanium industry must "rise to the challenge to remain competitive as a material of choice, as other materials improve their value proposition."

According to Warner, three major forces are driving the increase in commercial aerospace traffic and the demand for new aircraft. First, he cited steady economic growth in emerging markets such as India and Asia, which is spurring the need for more business air travel. Second, low-cost carriers continue to stimulate demand as they serve the growing middle class in many parts of the world.

Third, airlines see a need to replace older, less fuel-efficient airplanes, given the ongoing rise in oil prices. As a result, strong demand for new airplanes has driven the Boeing backlog to over 4,000 airplanes, valued at $302 billion at the end of second quarter of this year.

The huge backlog and need for new aircraft is pushing Boeing to increase its productions rates. Warner estimated Boeing would produce 30 percent more airplanes in first half of 2014 compared with the same period this year—all of which should create significant business opportunities for the titanium industry.

"Both near-term and long-term, we see a strong and growing aviation market," Warner said. "Airline traffic is forecasted to grow at a 5-percent annual rate over the long term, with cargo traffic projected to grow at 5.2 percent per year."

Eric Zanin of Airbus and Benoît Brossoit of United Technologies Corp. are the two other distinguished guest speakers slated to appear at TITANIUM 2012, which will be held Oct. 7-10 at the Hilton Atlanta, 255 Courtland Street NE, Atlanta. To register, call the ITA at (303) 404-2221 or visit the association's Web site (www.titanium.org).