Fri, Nov 07, 2014 - Page 13 News List

Asia to buy 1,340 airplanes over next 20 years: Boeing

By Amy Su  /  Staff reporter

The aviation market in northeast Asia, including Taiwan, will need 1,340 new commercial airplanes over the next 20 years, with wide-body planes accounting for the majority, given rising demand on international long-haul routes, a Boeing Co executive said yesterday in Taipei.

“Wide-body airplanes continue to be at the heart of the Taiwanese and northeast Asian market,” Boeing Commercial Airplanes vice president of marketing Randy Tinseth told a news briefing.

“We will see older aircraft replaced with new, more fuel-efficient models, and continued expansion of long-haul international services,” he said.

About 64 percent, or nearly two-thirds, of the new deliveries are set to replace the current fleet with newer, more efficient planes, with the remaining 36 percent to be ordered on the back of the projected 2.7 percent year-on-year growth in passenger traffic over the next 20 years, Tinseth said.

Even though the industry is seeing growing signs of a rapid development in the low-cost carriers segment in northeast Asia, Tinseth does not expect the segment’s market share in the region to hit 30 percent or 40 percent — like that in the US and Europe — and thus believes in a relatively lower demand for single-aisle aircraft in this region.

Based on Boeing’s latest industry report, Asia-Pacific carriers might show the strongest demand for new commercial aircraft over the next 20 years, with the investment expected to total US$2.02 trillion for 13,460 new commercial planes.

In particular, airline companies in northeast Asia, which includes Taiwan, Japan and South Korea, are set to order 1,340 new aircraft valued at US$280 billion between this year and 2033, the report said.

Tinseth said Taiwan is poised to post the highest economic growth in northeast Asia, which should spur continued cross-strait traffic growth to more than 700 flights per week.

Boeing forecast a 1.5 percent year-on-year growth for the northeast Asian economy over the next 20 years, with Taiwan’s GDP expected to grow at a faster rate of 3.2 percent annually.

Globally, the company expects airlines to invest US$5.2 trillion in 36,800 new commercial airplanes to be delivered between this year and 2033.

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