Airbus, Boeing ride on Asia-Pacific market to weather worst slump<\/p>\n
P. Parameswaran, Agence France-Presse, Cebu, Philippines<\/p>\n
Hit by poor sales in the United States and Europe, aircraft
\nmakers Airbus and Boeing want to ride on the rapid traffic growth
\nin the Asia-Pacific region, where more than 315 aircraft are
\nexpected to be delivered over the next five years, officials say.<\/p>\n
A dramatic recovery in passenger and cargo traffic in the
\nAsia-Pacific region after the Sept. 11, 2001 attacks in the
\nUnited States may propel the region to become the biggest market
\nfor aircraft sales even before the target date of 2020 for
\nachieving that goal, Airbus chief commercial officer John Leahy
\nsaid.<\/p>\n
At present, the Asia-Pacific region is the third largest
\naircraft sales market after dominant player North America and
\nsecond-ranking Western Europe.<\/p>\n
Aviation experts had forecast that the region, based on its
\nrapid traffic expansion, will overtake North America as the top
\nplayer in 18 years.<\/p>\n
\"As this is being playing out, the crisis that we have just
\nseen seems to be accelerating that process, where we see the
\nAsia-Pacific market already recovering from 9\/11 and resuming its
\nvery strong growth rate,\" Leahy told AFP on the sidelines of a
\nweekend meeting here of chief executives of 17 leading airlines
\nin the region.<\/p>\n
The meeting was held under the ambit of the Association of
\nAsia-Pacific Airlines (AAPA), which said in a report that its
\nmembers were planning to take delivery of 315 aircraft over the
\nnext five years.<\/p>\n
The orders and options placed by AAPA members are about 70
\npercent for the American Boeing aircraft and the remaining for
\nEurope's Airbus.<\/p>\n
The two manufacturers are aggressively marketing their
\nproducts in the region as they strive to overcome the worst
\ndownturn in their business.<\/p>\n
Leahy said that while Asian airlines had largely restored
\ntheir levels of profitability after the Sept. 11 crisis, \"some
\nairlines in the United States are still losing five, six, seven
\nmillion dollars a day.<\/p>\n
\"So from a manufacturer's point of view, we see that the
\nspotlight is now moving on to the Asia-Pacific region.\"<\/p>\n
Airbus is negotiating with at least three Asian airlines to
\nsell its new giant A380 plane, Leahy said.<\/p>\n
Singapore Airlines will be the first carrier to operate the
\nA380 aircraft, which will have variants to carry passengers and
\ncargo, with deliveries scheduled from the first quarter of 2006.<\/p>\n
Airbus Asia spokesman Anthony Phillips said rapid traffic
\ngrowth would see the Asia-Pacific region being the single largest
\nmarket globally for aircraft with more than 400 seats such as the
\nflagship 555-seat A380.<\/p>\n
In value terms, Airbus estimates the total market value for
\nnew aircraft in the region at nearly US$500 billion up to 2020,
\nPhillips said.<\/p>\n
Although Airbus seems certain to sell more planes in the world
\nthan Boeing for the first time next year, the American giant is
\nnot about to throw in the towel, particularly in the key Asia-
\nPacific market, industry observers say.<\/p>\n
Boeing opened a new office in Kuala Lumpur recently to enhance
\noperations in Southeast Asia for a stronger customer focus.<\/p>\n
Asked to comment on Boeing's response to the Airbus A380
\ncampaign to lure new buyers, its Seattle-based business director,
\nBrian Belka, said: \"We always try to base our products on market
\ndemand and while we and Airbus build fine products, I think ours
\nare better.<\/p>\n
\"We believe our (Boeing) 747 is an excellent airplane and we
\nwill continue to improve it and provide upgrades and make it more
\nattractive economically to operate in the Asian market.\"<\/p>\n
Boeing spokesman Bob Saling said it was estimated that his
\ncompany would sell \"55 to 60\" aircraft in the Asia-Pacific region
\nin 2003, lower than the projected 99 aircraft in 2002.<\/p>\n
The region should make up about 20 percent of Boeing's
\nestimated 275 to 285 global aircraft deliveries next year from 26
\npercent of 380 aircraft deliveries forecast in 2002, Saling said.<\/p>",
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