Aerospace firms see Asia-Pacific as key market

The Asia Pacific will be a key battleground for the world's top aerospace companies in the next 20 years, with industry players

already positioning for a slice of the expected multi-billion-dollar bonanza.

The Asian Aerospace event that ended in Singapore yesterday gave a glimpse of the long-term rivalry both in the commercial and military fields.

It also underscored the robust optimism over the potential of the aerospace business in the region that includes China, Japan, South Korea, Australia and Southeast Asia.

As France's Rafale fighter and the US' F-15E Strike Eagle roared above the skies to display their repertoire of death-defying moves, aerospace executives talked business with Asian counterparts in air-conditioned chalets onsite near Changi beach.

Organizers that a record US$3.52 billion worth of deals were inked during this year's Asian Aerospace event, surpassing the US$3.2 billion in 2002.

"The Asia Pacific will continue to be one of the core markets for large civil aircraft. We expect Asia Pacific to account for 60 percent of the total demand for aircraft with more than 400 seats," said Philippe Camus, one of two chief executives of the European Aeronautic, Defence and Space company (EADS).

"In the next five years, we see the Asia Pacific share of our turnover reaching 20 percent. And by 2015, we expect 30 percent of our sales in Asia Pacific," Camus said in one of EADS' press briefings.

EADS 80 percent of Airbus, which is duelling with US firm Boeing Co in the commercial airline market. EADS and Boeing are also rivals in the defense market which includes fighter planes and integrated defense systems.

Boeing Commercial Airplanes senior vice president for sales Larry Dickenson said the Asia Pacific market should grow faster than the US and Europe in the short term.

For the long term, the region should emerge as the "biggest market sector we will be competing in over the next 20 years," he said.

Rivalry the defense side was highlighted by the competition between Boeing's F-15E, the Rafale by France's Dassault Aviation and the Eurofighter consortium's Typhoon for Singapore's fighter replacement program.

Singapore, which spends 6 percent of GDP on national defense, has shortlisted the three jets to replace its ageing squadron of Skyhawks in a deal estimated to be worth more than US$1 billion. A decision is expected early next year.

Makers Unmanned Aerial Vehicles (UAVs), which have proven their worth in the battlefields of Afghanistan and Iraq, also hope to make a splash in the Asia- Pacific market.

In a world premier for an air show, the manufacturers showcased the flying abilities of the alien-looking "drones" which proved to be a hit. Several UAV models were on static display.

Curt Orchard, vice president for Asia Pacific at US defense technology firm Northrop Grumman, said he expects to sell 37 of the helicopter-shaped RQ-8B Fire Scout UAV to navies in the region.

Northrop's Global Hawk UAV was a star static display at the show, along with UAVs made by EADS, Israel and Singapore.

Rohan Gunaratna, head of the International Center for Political Violence and Terrorism Research, described the UAVs as a key tool in fighting terrorism.

"They can be used to monitor the movement of terrorists by sea and on land, including terrorist training camps and terrorist supply vehicles," he said.