SE Asian aircraft demand skyrockets

SE Asian aircraft demand skyrockets

Randy Tinseth, vice-president for marketing at Boeing Commercial Airplanes, says Southeast Asia has become a key growth market for new aeroplanes.
Randy Tinseth, vice-president for marketing at Boeing Commercial Airplanes, says Southeast Asia has become a key growth market for new aeroplanes.

Southeast Asia's significance as a major global aeroplane market is becoming more apparent with its burgeoning aviation activities.

The region is projected to need 3,860 new aircraft worth US$565 billion over the next two decades to 2035, US plane maker Boeing stated in its latest market forecast.

In unit terms, Southeast Asia represents 25.5% of overall demand projected for Asia over the period, totalling 15,130 aircraft, worth $2.35 trillion.

In value terms, Southeast Asia's payments for new aircraft over the period should amount to 24% of procurements for Asia, with China taking the lion's share.

In a media briefing in Bangkok yesterday, Randy Tinseth, vice-president for marketing at Boeing Commercial Airplanes, said Southeast Asian traffic has grown by over 10% annually since 2009.

Like most other parts of the world, Southeast Asia's aircraft market is propelled by the proliferation of low-cost carriers, the creation of new routes and robust air travel demand, he said.

"Southeast Asia is a fast-growing market that is resilient with long-term upside," said Mr Tinseth.

Within the region, Thailand, Indonesia, Malaysia and Vietnam will be the key drivers for new aeroplane demand over the next two decades, he said.

Boeing does not release demand figures for individual countries.

Boeing estimated 77% of all the new aircraft required by Southeast Asia over the period would be single-aisle jets such as Boeing 737 and Airbus 320 models, the latter of which is the prime workhorse for burgeoning no-frills operators.

These single-aisle aircraft would cost the region's operators $325 billion.

The second-most popular segment in the region is small wide-body jets such as the Boeing 787 Dreamliner, representing 15% of all units. Some 6% would be medium wide-body jets like the Boeing 777, with regional jets (offering about 100 seats) and large wide-body aircraft such as the Boeing 747-8 jumbo each representing only 1%.

Mr Tinseth said 73% of the 3,860 new aircraft Southeast Asia would require over the next two decades are for incremental growth demand and 27% for replacement of older aircraft. Some 320 aircraft will be retained in fleets, he said.

Globally, Boeing expects 39,620 new aeroplanes valued at $5.93 trillion to be ordered over the next 20 years. The market for new aircraft is expected to become more geographically balanced over the period, said Mr Tinseth.

While Asia should become the world's largest aeroplane market both in terms of units and value, Boeing sees demand for 8,330 aircraft worth $1.03 trillion for North America, 7,570 aircraft worth $1.12 billion in Europe, 3,310 aircraft worth $770 billion in the Middle East, 2,960 aircraft worth $350 billion in Latin America, 1,170 aircraft worth $140 billion in the former Soviet space, and 1,150 worth $170 billion in Africa.

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