The commercial aviation support services market will be worth more than $2.6 trillion over the next 20 years, considerably more than projected new air transport sales for all manufacturers combined, says a Boeing forecast.

In 1999 alone, airlines spent about $330 billion on operating expenses with roughly $87 billion going to support services, according to Randy Baseler, marketing VP for Boeing's Commercial Airplane Group. This means they will be looking for ways to outsource non-core capabilities or diversifying to increase efficiency, he said.

Suppliers such as Boeing, which can provide customized product-and-service packages, will be highly sought after by airline customers.

"In today's environment, airlines want partners and suppliers who understand the market and who have the expertise to pull together industry resources" to solve airlines' needs, Baseler said.

Of the $1.5 trillion that Boeing projects airlines will invest in new airplanes over the next 20 years, about 55% will be for larger regional jets and single-aisle aircraft. The market for jets 747-size and larger represents only 6% of the market. Intermediate-size aircraft and small regional jets will split the remainder.

The Boeing outlook estimates that 22, 315 new airplanes will enter service over the next 20 years to accommodate growth and replace older, inefficient transport models.

By Paul Proctor