Page 6 - AAA MARCH - APRIL 2014 Online Magazine
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FEATURE ENGINES
FEATURE ENGINES
Power Play
Big engine makers are rising to the occasion
EnviablE, that is thE growth ratE Consolidated defence titans such as
of aerospace sector in Asia and Middle General Electric, United Technologies and
East. Honeywell are fortifying their aerospace
With an established international operations with a view to capitalize on the
customer base, the aerospace sector increased demand from public as well as
is favourably positioned to overcome private sector across both domestic and
inherent macroeconomic challenges international frontiers.
and derive benefits from the booming According to the Zacks Industry Rank,
commercial markets of Asia Pacific and the aerospace industry currently ranks
defence markets in the Middle East and among the top one-third, implying that
Asia. Furthermore, supply chain markets the outlook remains positive on this sector
for the aerospace sector are opening up for 2014, backed by a steady surge in air
in India, Brazil, Mexico, Turkey and China. travel demand. For the aerospace sector,
The expansion in the aerospace sector both earnings and revenues “beat ratio”
will in turn fuel growth opportunities for stood at an impressive 88.9% in the fourth
the manufacturers of engines and parts, quarter of 2013.
and service providers of the industry. Dominant players in the sector
Over the next decade, the market for jet including General Electric’s CFM
engines is expected to skyrocket to around International, United Technologies’ Pratt
US$500 billion. Single-aisle planes are & Whitney Honeywell and PowerJet, are
Expansion in the expected to constitute 70% of the 35,000 well-positioned to reap benefits from
aerospace sector will
in turn fuel growth new commercial jets in the next couple of this impressive industry performance,
opportunities for the decades, with a market valuation of nearly going forward on lucrative contracts for
manufacturers of engines US$2.3 trillion. jet engine replacements. The companies
and parts, and service What is interesting to note is how are investing heavily in technological
providers of the industry. the biggies are rising to the occasion. innovation to come up with new products
6 ASIAN AIRLINES & AIRPORTS MARCH / APRIL 2014 WWW.ASIANAIRLINES-AIRPORTS.COM
