Page 7 - AAA APRIL - MAY 2017 Online Magazine

FeAtUre singLe AisLe

passenger traffic.” “Driven by the region’s aisle airplanes that will mean a requirement
strong economic development, highly for 5,100 single-aisle airplanes. Whereas
effective industry structure, and increasing China’s demand for single aisle airplanes is
accessibility of air transport services, significant Northeast Asia’s requirement
more than 100 million new passengers are is more modest at 600 over the next 20
projected to enter the market annually,” years. Boeing says that it is “small but a fast-
Boeing’s forecasts state. It adds that to growing segment.” And it adds that these LCC
“accommodate this significantly growing airlines are “driving the growth in the short-
demand and modernise their fleets, over the haul (less than 3,500 sm) markets.” “Over the
next 20 years Asia will need 15,130 airplanes, last 10 years, the average annual growth for
valued at US$2.35 trillion. The number of the LCCs has been approximately 20 per cent,
airplanes in the Asia fleet will nearly triple, while the remainder of the airlines domiciled
from 6,350 airplanes in 2016 to 16,970 in the region have grown, on average, at less
airplanes in 2035. Fast-growing LCCs within than 1 percent,” says Boeing. Boeing adds
the region will help drive a need for 11,160 that “ten years ago, they (LCCs) accounted
single aisle airplanes.” Broken down, Boeing for 5 per cent of the market; today this has
says that China forecasts that its economy grown to approximately 25 per cent.”
“continues its transition toward a more
services- and consumption-based economy Growth in Southeast Asia
— away from the investment, export, and For Southeast Asia, Boeing says the region
heavy-industry focused growth of the past.” has experienced significant growth over the
“Over the next 20 years, it is forecasted that past decade and is projected to continue to
the Chinese economy will grow at 5.1 per grow at the rate of 4.4 per cent through 2035.
cent annually and airline passenger traffic To support this robust momentum, Boeing
will grow at 6.4 per cent annually. These two forecasts that over the next 20 years, the
indicators, as well as other growth items, region will need 3,860 new airplanes, valued
such as a growing middle class, help drive at US$565 billion. Passenger traffic growth
a need for more than 6,800 new airplanes, in Southeast Asia is expected to continue
valued at US$1 trillion,” Boeing says. to accelerate at 6.4 per cent per annum over
The biggest driver is the China domestic the next 20 years. Boeing says that the low-
market with double-digit growth and cost carrier (LCC) business model has proved
with 90 per cent of domestic flights and “particularly successful in Southeast Asia.”
regional flights are being flown on single- “The low-cost carrier fleets in Southeast

Silkair is rolling over it fleet of
A319/320s for 24 737-800s and 31
737MAXs
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