SANTIAGO (DOW JONES)--Latin America will show a 6.4% increase in air traffic over the next 20 years, second only to China, said John Wojick, vice president for Latin American sales for Boeing Co. (BA), during the International Air and Space, or FIDAE, show in Santiago Monday.

Boeing forecasts a market of 1,700 new planes, 79% in the single-aisle class, for a total value of $120 billion.

Wojick said Boeing forecasts a world market of 28,600 new airplanes in the next 20 years, 62% in the single-aisle category, for a total market value of $ 2.8 trillion.

Latin America is a "sizable, growing and successful market" that boasts "some of the most profitable carriers in the world," Wojick said.

He added that in 2000, the region had a fleet of 800 passenger airplanes, 54% of which were "older generation" models. Today the fleet has 1,000 planes, and only 25% are older models.

"There has been a tremendous renewal of the fleet in Latin America," he said.

Fleet renewal has brought an increase in sales, Wojick said. In 2005, Boeing sold 67 new planes in the region. In 2006 sales fell to 57, but in 2007 they grew to 91. Actual plane deliveries have also increased in the region, from 61 in 2006 to 90 in 2007.

By comparison, in 1991, Boeing's top two clients in Latin America were Brazil's GOL Varig (GOL), with 40 of the 737NG models, and Chile's LAN Airlines SA (LAN.SN), with 39 planes, mostly 787s. LAN is still the largest Latin American operator of the 787 aircraft.

Wojick said Latin American airlines now have a total of 636 Boeing airplanes in service with 186 more on order. The company's 79 airline customers in the region carry out 3,100 daily flights with 350,000 daily passengers, he added.

Randy Tinseth, vice president of marketing for Boeing's commercial planes unit, said the company's global backlog grew from $174 billion in 2006 to $255 billion in 2007.

Wojick highlighted LAN's recent purchases of Boeing jets. The Chilean carrier ordered two 777 Freighter models that can carry 103 metric tons of cargo. Additionally, LAN ordered 32 of the 787 passenger models with deliveries starting in 2011 - 26 of the 787s will be purchased directly from Boeing and six will be obtained via leasing corporations.

Wojick said the 787 has a list price of $180 million, and estimated the total value of the LAN contract at $5 billion to $6 billion.

-By George Seal, Dow Jones Newswires; 56-2-460-85-46; George.Seal@dowjones.com

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  03-31-08 1754ET
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