Over the past eight and a half years, the growth of the aviation industry has been “very strong,” according to one Boeing executive.
“(The) market’s in a pretty good place,” said Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes.
Speaking with CNBC’s Matthew Taylor, Tinseth said passenger traffic numbers have grown above trends and the demand in cargo markets has come back in recent years, resulting in airlines being “at or near record profitability.”
“From a Boeing perspective, our (production) rates are 65 percent in that eight year period. Last year, we had record deliveries and this year we’re on track to even deliver more aircraft,” Tinseth said.
Boeing’s performance comes amid changing customer demands in the industry, with more airlines shifting toward direct service flights instead of traveling through a hub.
One example of a plane that enables such a service is Boeing’s own 787 Dreamliner, which Tinseth said has opened up 180 new markets since going into service in 2011.
“It’s about the right-sized airplane, really efficient aircraft, great economics to open up these routes more profitably,” he said.