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Mar l<et Outlool< R ohr', growth through abroad. An additional factor is to 1988. These new aircraft the 1990s is expected to the retirement of older aircraft estimates reflect only modest come primarily from unable to meet more stringent sales to the Soviet bloc and the the commercial market. While local airport noise restrictions People's Republic of China, two the company's military aircraft and those with poor operat- markets which could expand business is projected to decline, ing economics. considerably. this should be offset substan- The backlog of orders for Liberalized airline policies in tially by increased revenue from commercial airliners, in excess Europe, patterned on U.S. de- space programs and spares sales. of 1,700, is an industry record. regulation, should stimulate air Following three strong years Analyst projections call for an travel there, leading to higher during which commercial aircraft average of 550 aircraft deliv- airline revenues and increased orders averaged more than 650 eries annually for the next 10 demand for aircraft. annually, calendar 1988, with years, peaking at approximately Rohr products are currently more than 700 orders in less 700 per year in the early 19908. than nine months, has exceeded This represents more than a on most models of airliners with more than 100 seats now in pro- most expectations. 50 percent increase from the duction. Established agreements Contributing to this ordering previous decade. place Rohr content on other air- pattern are continued increasing In the next 15 years, there craft now in development. passenger demand and a favor- will be an estimated 7,800 new able airline cost structure, transport aircraft delivered, In order to provide complete including modest fuel prices. valued at $360 billion in 1988 propulsion systems,. the com- The result has been generally dollars. This compares with pany is aligned increasingly improving airline operating 9,400 commercial jet-aircraft with engine manufacturers profits in both the U.S. and deliveries in the 30 years up and is working closely with three engine companies on new nacelle designs for higher-thrust Annual Sales by Market Area versions of their present engines. The expanding commercial fleet means there will be an in- creased spares requirement. Rohr will continue to meet this demand by providing spares to its major prime customers. In addition, more recent agree- ments covering Rohr nacelle systems on the Airbus Industrie A320 and components for the General Electric CF6-8OC2 engine nacelle and the McDonnell ..,