Page 6 - AAA APRIL - MAY 2017 Online Magazine

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Game Changers

The business aviation market is expected to recover from 2018 as new models
enter service
By Geoffrey Thomas

For YeArs, nArroW BodY 737 And directly or by example and have set a global
A320 style aircraft have been almost an bench mark for value and service. Sales for
afterthought in Asia with legacy airline fleets 180-seat narrow bodies in Asia up to 2002
dominated by wide-bodies to handle slot were confined more to regional networks
constrained airports such as Narita and Kai supporting legacy airlines such as All
Tak. For many years’ analysts insisted that Nippon Airways (ANA) and Malaysia Airlines,
the U.S. and European low cost carrier (LCC) although small regional carriers such as Cebu
model would never work in Asia because the Pacific were emerging. Fast forward to 2017
seat mile costs of Singapore Airlines and and A320 and 737 sales in the Asia region are
Cathay Pacific were so low. In fact, the Hong significant.
Kong-based airline first brushed off the
threat of LCCs by saying it would discount Market Drivers
the backend of its 777-300s to counter any In Boeing’s Global Market Forecast it states
threat. The problem for the legacy carriers on Asia overall that it “is gaining prominence
was that Air Asia’s Tony Fernandes wasn’t in global aviation and is expected to
Malaysia Airlines Berhad listening nor could their 777s fly to a host of become the world’s leading travel market.
(Malaysia Airlines) has out of the way cities and towns that make Total air traffic for the region is forecast
placed orders for 25 737 up the bulk of the LCC networks. AirAsia and to grow at an average of 6.2 per cent, and
MAX 8 airplanes, valued at
US$2.75 billion dollars at its host of JV airlines and the Jetstar group by 2035, passenger traffic throughout
current list prices have changed the landscape of Asia either Asia will constitute 48.7 per cent of global
6 ASIAN AIRLINES & AEROSPACE APRIL / MAY 2017 WWW.GBP.COM.SG/AAA