Asia-Pasific region vital to global aerospace industry
Asia-Pasific region vital to global aerospace industry
SINGAPORE (AFP): The global aerospace industry is poised for a
recovery on the back of mega deals in Asia which hold the key to
the fortunes of civil and military plane-makers, industry
officials said yesterday.
"The writing is on the wall: that industry players who ignore
Asia from now on do so only at their own risk," said Clive
Richardson, an organizer of Asia's biggest air show, which opens
here today.
The continuing emergence of the Asia-Pacific region as an
important market would play a vital role in boosting the
aerospace industry's comeback, Richardson said.
He cited a US$12.7-billion contract awarded by Singapore
Airlines for 77 Boeing aircraft in November and a $4-billion
order by Malaysian Airlines in January with the Seattle-based
company.
Such deals were seen as a signal that the demand for aerospace
products was on the upswing, ending a worldwide slump in
commercial aircraft sales.
"It could also spell the end of the disturbing trend in price-
cutting among manufacturers as they move from a buyer's to a
seller's market," Richardson said at a press conference on the
eve of the opening of Asian Aerospace '96.
He said the upswing would benefit not only the airframe
manufacturers such as Boeing, McDonnell Douglas and Airbus
Industrie but also engine-makers such as General Electric, Pratt
and Whitney and Rolls Royce.
The airlines apart, private buyers from Asia were also forking
out sizable sums for luxury corporate items such as executive
jets, and companies such as Bombardier, Gulfstream and Dassault
are here to tap that segment.
Richardson, a director of the air show, also referred to the
rapid modernization of armed forces in Asia, which many observers
suggest is in the throes of a dangerous arms race.
But the modernization drive has resulted in some significant
contracts, he said.
He referred to Malaysia's orders for F-18s, MiG-29s and BAe
Hawks, and Thailand's orders for F-18s and the passing of a $1.9
billion five-year military modernization budget by the
Philippines.
Pitching for future business will be companies such as
McDonnell Douglas, Lockheed Martin, Dassault and British
Aerospace represented at Asian Aerospace.
CN-235
Asia itself is beginning to establish itself in the aerospace
manufacturing sector, and the show will feature Indonesia's CN-
235 maritime patrol aircraft and China's K-8 jet trainer.
South Korea is expected to use the show as a platform to
launch its new KTX-II light fighter/trainer program and the
proposed Sino-Korean 100-seat twin-jet will be discussed at the
forum.
Asia is also emerging as an important manufacturer of aviation
and defense-related technologies, and firms from Singapore,
China, India, Japan, Indonesia, Taiwan and South Korea will show
their wares.
"In the coming years, there will be tremendous opportunities
for western manufacturers to enter into fruitful joint-venture
partnerships with these regional aerospace players," Richardson
said.
Some 27,000 trade visitors are expected to attend the show,
which will feature 19 of the world's newest fixed-wing planes and
helicopters and air displays by sophisticated fighter planes.
More than 900 companies from 36 countries are participating in
the event, one of the world's most prestigious air shows.
"The event will provide an important opportunity for western
manufacturers to cultivate the dynamic new markets of the Far
East," said Jimmy Lau, managing director of Asian Aerospace Pte.
Ltd., the organizers.
"A record number of military and commercial delegations from
nearly 40 countries will attend the show," Lau said.