Boeing sees steady growth in Northeast Asian aviation market

A Boeing executive said on Thursday that the company expected passenger air traffic in Northeast Asia to grow at an annual rate of 2.6 percent over the next 20 years, backed by the strength of growing low-cost carriers (LCCs) and need for aircraft replacement.

"We have seen a surge in the number of flights being added within the region due to the emergence of LCCs over the past five years," Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes, said while unveiling Boeing's 20-year market outlook for the region in Taipei.

According to the company, the market share of Northeast Asia LCCs has grown from 31 percent in 2011 to 47 percent in 2016.

The trend is exciting news for the aviation industry because budget airlines help stimulate flight demand in general, he said.

In addition, mature fleets in Northeast Asia will drive replacement demand, contributing two-thirds of the region's aircraft deliveries, according to Tinseth.

Boeing also forecasts that airlines in Northeast Asia will require 1,440 new commercial airplanes valued at over US$320 billion between now and 2035.

More than half of these airplanes, or approximately 770 aircraft, will be for widebody airplanes such as the new 787 and 777 airplanes, while 600 units will be for narrow-body airplanes, such as the new 737 MAX, Tinseth said.

"Widebody airplanes will continue to play an important role in Taiwan's commercial air travel market and that trend will continue as EVA Air introduces new 787s in the coming years," he said.

Source: Focus Taiwan News Channel