Boeing boosts SEA order forecast; AirAsia, Vietjetjet others become important

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Boeing Co said on Friday it had increased its 20-year forecast for Southeast Asian demand by 460 aircraft, the largest jump of any global region, as low-cost carriers make travel more accessible.

Boeing sees demand for 4,210 new airplanes worth $650 billion in Southeast Asia over the next two decades, based on an estimate of annual traffic growth of 6.2 percent. That is up from last year’s forecast of 3,750 aircraft valued at $550 billion.

Southeast Asia, home to rapidly growing low-cost carriers like Indonesia’s Lion Air, Vietnam’s Vietjet and Malaysia’s AirAsia Bhd

China is also trying to compete in this market. The C919 narrowbody, which took its first test flight in May, has received 730 orders to date.

The Boeing forecast does not include any deliveries to Myanmar, Cambodia or Laos, which have less developed aviation sectors than neighboring countries like Thailand and Vietnam.

Airbus has not released a specific order forecast for Southeast Asia but a spokesman said the European manufacturer expected annual passenger growth of 7 percent a year over the next 20 years.

Boeing sees worldwide demand at 41,030 new airplanes over the next two decades. While it sees demand jumping the most in Southeast Asia, it has not yet given breakdowns for each global region.

Source :International Newspapers