Airbus and Boeing see an increase in the demand for short-haul aircrafts for this region where low-cost carriers are aggressively servicing consumers’ demand for air travel.
On Friday, Boeing Co stated it has increased its 20 year forecast for Southeast Asian demand by 460 aircraft. This marks the largest jump for any region in the world. Southeast Asia’s low-cost carriers are making air travel more accessible to consumers.
In the next two decades, Boeing sees the demand for new airplanes at 4,210, up from 3,750, which will be worth $650 billion, as opposed to its earlier $550 billion. Its estimate is based on the growth of annual traffic by 6.2%.
“Look at countries like Vietnam, Thailand and Indonesia – that infrastructure has to grow and will grow,” said Dinesh Keskar, Boeing’s vice president for Asia-Pacific and India sales.
“Aviation is the biggest source of tourism for the countries, it is the biggest source of moving people and moving cargo.”
Southeast Asia is increasingly becoming a key driver for airplane makers, including Boeing and Airbus SE since more mature markets have significantly lower growth rates.
As per Keskar, single-aisle airplanes, such as Airbus SE A320 and Boeing’s 737 MAX are likely to account for more than 70% of new deliveries, since consumers in this region are expected to take short-haul routes.
Boeing’s forecast does not factor in aircraft deliveries to countries such as Myanmar, Laos and Cambodia, which have comparatively less developed aviation sectors in comparisons its neighbors, Thailand and Vietnam.
Although Airbus has yet to release a specific order forecast for Southeast Asia, the company’s spokesman however said it expects annual passenger growth to hover around 7% a year over the next 2 decades.