Boeing Predicts Southeast Asia Needs Additional 4,465 New Planes in 20 Years

TEMPO.CO, Jakarta - United States-based aircraft company Boeing Co. predicts countries in Southeast Asia will need an additional 4,465 aircraft in the next 20 years to support the domestic aviation segment. The increasing demand for aircraft occurs in line with the rapid economic growth in a number of developing countries.

"Southeast Asian countries experiencing rapid economic growth will also experience fleet and passenger traffic growth well above the global average," said Boeing Vice President of Commercial Marketing Darren Hulst in a virtual press conference, Tuesday, November 9. 2021.

Boeing calculated the value added to the order for the aircraft, it was equivalent to US$765 billion. In addition to new aircraft orders, Boeing predicts an increase in the number of commercial flight service needs worth US$ 790 billion USD in 2040.

In his 2021 Commercial Market Outlook (CMO) presentation, Hulst said air travel in Asia Pacific has the potential to account for nearly half of the global air traffic market. By 2040, all countries in Asia Pacific are estimated to need 17,645 new aircraft worth US$3.1 trillion and after-sales service equivalent to US$3.7 trillion.

Besides Southeast Asia, the largest contributor to aircraft demand comes from China and South Asia. The increase in the number of aircraft orders occurred after various countries achieved economic recovery after the Covid-19 pandemic.

“We have seen strong resilience in Asia Pacific traffic. When community restrictions are lifted, passengers feel confident to travel,” said Hulst.

Not only the need for passenger aircraft, the demand for cargo fleets has also soared. Boeing said orders for the cargo fleet would triple to 1,160 aircraft, both new and converted.

Ordering this cargo fleet is to support diversification of the global supply chain and meet the demands of e-commerce. Cargo fleets in Asia Pacific are expected to match North American cargo fleets in the next 20 years.

The increase in orders for the number of cargo planes also occurred in line with the trend of airline business during the Covid-19 pandemic, which relied on the freight flight segment, including in Indonesia. "However, we do not have details on how many cargo fleet orders are for Indonesia. Only, we believe there will be additional orders," said Hulst.

Read: Boeing Predicts 4,000 New Airplanes for Southeast Asia

FRANCISCA CHRISTY ROSANA