Aircraft-for-ASEAN iniative by four nations: Report

Aircraft-for-ASEAN iniative by four nations: Report

Agence-France Presse, Kuala Lumpur

Malaysia, Indonesia, Thailand and Brunei may join hands to build small commercial aircraft for the fast-growing Association of Southeast Asian Nations (ASEAN) market, a report said on Monday.

The four countries are exploring the possibility of forming a consortium to set up a plant in the region to tap into an industry long dominated by U.S. aviation giant Boeing Co. and its European rival Airbus, the Business Times reported, citing unnamed sources.

The idea was first mooted by Malaysia and Indonesia. At a recent informal meeting, the four countries agreed to develop and construct a 19-seater passenger aicraft for the ASEAN market, with an initial production capacity of 24 units a year, the sources said.

Although the proposal is for a commercial airplane, there are plans to convert it for use by coast guards or for military transport and medical evacuation, the sources said.

Indonesian Aerospace has initiated design work on the ASEAN airplane but plans are still in a preliminary stage and expected to be finalised by early next year at the next meeting in Bandung, Indonesia, they said.

According to market forecasts, there is a need for 3,500 commercial aircraft in this class globally over the next 20 years, the daily said.

"The consortium's market share target is only 10 percent of the world market .. This would hopefully synergise ASEAN's competence to gain a competitive edge in the global market," one of the sources said in the report.

Market studies will be conducted before details of the proposed plant and the investment contribution by each country are mapped out, the source added.

The four countries are part of ASEAN, which also groups Cambodia, Laos, Myanmar, the Philippines, Singapore and Vietnam.