Boeing expects world will need more planes

Boeing has upped its forecast for global airplane demand.

It now believes the world will need 34,000 new planes by
2031, which is 500 more than it predicted just last year.
The company says emerging markets like Asia continue to
drive demand and that demand is worth an estimated $4.5
trillion.

Boeing believes airline traffic will grow by a 5 percent
annual rate, but the cargo market is lagging. The company
has downgraded demand for freighters slightly over the
next
20 years.

Meanwhile, on Monday, Airbus announced it will spend $600
million to build a plant in Alabama, its first in the
United
States.

“This day will shape the future of region for years to
come,” Alabama Governor Robert Bentley said during the
announcement.

Boeing and Airbus have had a long-running international
trade dispute. Each also has been critical of subsidies
received by the other.