Aircraft manufacturers stake out Asia-Pacific battleground
Aircraft manufacturers stake out Asia-Pacific battleground
SINGAPORE (AFP): The Asia-Pacific skies are emerging as the
crucial battleground for aircraft manufacturing giants desperate
to cash in on an estimated US$500-billion market, industry
players said.
Growing passenger demand, boosted by the region's rapid
recovery from the 1997 financial crisis, has pitted European
consortium Airbus Industrie against U.S. rival Boeing in a
vicious dogfight to meet demands for larger aircraft in newer
fleets.
"The reason why this region is attractive to aircraft
manufacturers is self-evident," said Richard Stirland, the
Association of Asia-Pacific Airlines director-general.
"It has the highest rates of growth, and the majority of wide-
bodied aircraft are ordered by Asia carriers.
"Carriers would not order these aircraft if they did not
believe that traffic growth in the future will justify the
purchase."
Industry forecasts show demand for air cargo space and
passenger seats in Asia-Pacific will mushroom much faster than
anywhere else in the world over the next 20 years.
Airbus stole the advantage over Boeing last month when blue
chip Singapore Airlines Ltd. (SIA) committed to purchasing 25 of
the revolutionary double-decker A3XX superjumbos worth $8.6
billion.
The 555-seater, new generation aircraft -- aiming to offer
"fantasy flights" with onboard gyms, casinos and shops -- will be
delivered to SIA from early 2006, making the carrier the first to
fly the biggest civilian plane ever built.
The order dealt a blow to Boeing which had doggedly courted
SIA with its 747X, a stretched version of the venerable B747.
SIA chief executive Cheong Choong Kong described the bidding
as "a hard-fought contest," adding that in the end there could be
only one winner and it was Airbus.
But aviation analysts said the true winner was SIA,
benefiting from extremely competitive pricing between Airbus and
Boeing.
In a move seen as a consolation for Boeing, SIA on Thursday
placed firm orders for six 747-400 freighters worth $1.3 billion,
plus an option for nine more which would raise the value of the
deal to $3.4 billion.
Australia's biggest carrier, Qantas, is looking closely at the
A3XX superjumbo as it plans a multi-billion dollar fleet upgrade,
although airline officials say they are also considering the
Boeing option.
Thailand's cabinet last week approved Thai Airway's purchase
of five new Boeing planes, and Hong Kong flag carrier Cathay
Pacific has three Boeing 747-400 freighters coming in the next
year.
Cathay has also set aside a "rough figure" of $2.6 billion for
new planes which "may include" the A3XX.
Boeing has forecast the air cargo business will grow faster
than passenger travel in the next 20 years, with the global
freighter fleet doubling from 1,676 to 3,200 -- and more than 90
percent of the capacity provided by widebody jets.
Airbus, in its forecast, said Asia-Pacific airlines will lead
demand for jumbo sized aircraft in the next 20 years, taking 42
percent of all new 300-plus seat aircraft.
This would include 1,000 aircraft with between 300 and 400
seats, and over 700 with more than 400 seats.
Airbus estimated the total value of the market for new
passenger and freighter aircraft in the region at some $490
billion during the 20-year period.
It foresees a lucrative market for freighters, with cargo
traffic continuing to grow faster than anywhere else in the world
-- at around 6.6 percent a year.
Asia-Pacific passenger traffic would continue to grow at
around 6.1 percent annually -- significantly higher than the
world average of 4.9 percent -- and the number of seats required
would more than triple to 1.2 million by the end of 2019,
according to Airbus.