Boeing held press conference at its Korea branch office building on October 7. Randy Tinseth, Boeing Commercial Sector Marketing Vice President, presented that Northeast Asian market will grow its air traffic by an annual average of 2.6% for the next 20 years on the strength of the growth of low-cost airlines.

Tinseth informed that low-cost airlines’ flights in Northeast Asia such as Korea, Taiwan, or Japan per week has increased about 600%, from 470 in 2011 to more than 2,700 in 2016. Its 37% for the annual average growth.

At the position announcing the prospect of Boeing in Northeast Asia for the next 20 years, Tinseth said, “For the last 5 years, with the appearance of low-cost airlines, the number of the flights in the area has increased.” And, “In case of Korea, low-cost airlines led the growth of aviation market.”


Randy Tinseth recalled when he visited Narita airport in Japan in the late nineties, and at that time all the airplanes were 747. After 15 years, when he went to the airport again, all the 747 airplanes were replaced with 777.

Boeing expected that airlines of Northeast Asia will need 1,440 new airplanes valued at 320 billion dollars, from 2016 to 2035. It is shown that about 770 airplanes, more than half, will take widebody models like 787 and 777, and the other 600 airplanes will take narrow-body models like 737 MAX. Among 1,440 airplanes required for 20 years, about two thirds are replacement demands, and the other one third will be demands created by market growth.

Recently, the number of seats per airplane is decreasing. This is because single-aisle airplanes became the mainstream. As these single-aisle airplanes became mainstream, flying short and medium-length trips nonstop became common. While the average number of seats per flight has decreased 20%, the number of serving cities has doubled. Tinseth explained that, with introducing smaller and more efficient widebody airplanes rather than large ones, it became possible for the airlines to run more direct flights at the world’s new markets.



From the 1950s, with the name, Current Market Outlook (CMO), Boeing has been researching and announcing the prospects of aviation industry. From 1961, it has been opening publically as statistics become basic strategies of Boeing product strategy and basic data of future business plan, and they can also help future strategy of customer companies (airlines, partners) by providing future prospects. As the forecast is more accurate and definite, it becomes advantageous to Boeing company, and its partners and customer companies. In this connection, nine indexes such as economic growth rate became definite, and the company started to research.

The aviation industry is known as a field that has been steadily continuing the growth rate. Actually, when looking up the last 36 years, it slowed down or backed down for only two times. Tinseth entered Boeing in 1981, and since then, the growth rate of the aviation industry has grown six times. Especially, in this year, 2.9% for economic growth rate, 4% for flight passengers, 4.8% for cost travelers, and 4.2% for cargo transport are predicted to be increased. The number of passengers is also expected to be increased to 7.5 billion.

Boeing divides the airplane types into three; single-aisle/wide-body/regional jet (less than 50 seats). Boeing expects its 737 next-gen type and MAX series will become mainstream. In aspect of the number of airplanes, the ratio of widebody type is 20%, but it is expected to occupy the half of the sales. Regional jets are seen from rather unique point of view, because of the reason that they would be the first replacements as future transportation.

Meanwhile, for the next 20 years, Boeing announced that it will invest $5.9 trillion in the airlines around the world for delivering 39,620 new aircrafts.


Boeing is establishing business strategy according to three standards including various forecasts, technologies and demands of customers. It is a policy of maintaining the broadest capacity and available product line-up and focusing on not only passenger planes but also cargo planes. Currently, a number of new models are being prepared, and in this regard, the greatest investment in its 100 years of history is in progress. Fully three major development projects are in progress at the same time.

737-MAX series development project is one of them. As it replaces 737 next-gen plan, CFM new engine family is introduced and a lot of aerodynamic development are added. Comparing to the original model, the capacity of passenger service has increased about 40 seats, and the interior and acceptability are being further innovated. Especially, Boeing expects 737-MAX will attract airlines as it has 25% higher fuel efficiency than current 737 series. Its first delivery is scheduled in the middle of next year, which is earlier than expected. At first, its completion was scheduled for 2018.

The next notable model is 777-X series, and it is a renewal of 777, the most successful in history of aviation industry. It is bigger than the currently-in-use models, and there are two types in the series; 777-8/777-9. Both of them support new GE engine, and feature composite structure wings designed to be large. Similar to the current 787 type, a flight deck upgrade plan is being promoted, and its first delivery is scheduled in 2020. Lastly, improvement work is in progress for the current 787 to raise its reliability to the level of 777.



The latest model that will be introduced in Korea is 787-9 Dreamliner model. In the first quarter of next year, 787-9 will be firstly delivered to Korean Air. Worldwidely, 15% of 787 routes are served in Northeast area. It is known that 314 planes had been delivered so far, and 120 million people boarded it. As the reliability of 787 has escalated to the best level in the industry, Boeing thinks that it is better than the competitors of the same level. 777 is the only model with higher reliability than 787, so it is stated that 787 is the second by reliability standard.

The strength of 787 is introduced that it can be worked as a main model for pioneering a new market. It is a model served for 120 new destinations in 5 years, because certain destinations, in the past, could not be served with the original model as they weren’t profitable. Due to 787’s features such as its scale and fuel efficiency, new departures became possible. So, it is explained that airlines became possible to draft a route policy in different ways from the past.

787-9 model, which will be introduced in Korea, has tremendous radius of flying range when by Seoul as a departure standard. Randy Tinseth stated that he accompanied when flying directly from San Francisco to Singapore with 787-9 model, and, at that time, the travel time was 15 hours 58 minutes. While the current model should have at least one stop, 787-9 saved 4-5 hours by flying nonstop.

Randy Tinseth said, “Northeast market will show dynamic growth, and, low-cost airlines will pull the growth inside it. Replacement demands will be steadily come up, and, among widebody types, the preference of small types tends to increase. Boeing expects 1,440 planes, and they are valued at 320 billion dollars. To satisfy rapid increase in demand, Boeing will provide the most perfect model in the world.”


Q1. (Acrofan) While widebody type became the major type as Europe and the Middle East promote Hub airport strategy, the business structure in Korea is leaning toward LCC grouping and 787/737 single-aisle type as the demand of Southeast Asia direct flights increases. What influence do you think the trend will have on component production and maintenance cooperation maintained in Korea? Also, is contribution from Korean companies to 777-X level cargo plane industry, which is followed by 747 in distribution industry, possible?

A strong collaboration is constructed with domestic partner. BS or additional collaboration is in progress in Korea, either single-aisle or widebody. In 2015, there was a purchase of about $500 million for Korean cooperative firms. We have been purchasing about 3 trillion won for the last 10 years, and this trend will continue. Moreover, no matter the airplane type is single-aisle, passenger plane or cargo plane, Boeing has strong cooperation with Korea, so I think Korean companies might have benefits.

Q2. (Acrofan) Like ‘Air Seoul,’ the launch event of international flight, the international flights’ routes firstly launched at the southern part argue about the age of models, and forward deploy the competitors’ models. Although LCC is important, there is no appearance of Boeing when LCCs in Korea appeal their models. Is there any plan to overcome or reverse this tendency?

Regarding LCC, the track record is strong. It is rapidly growing in Korea. It was possible as the growth factor is Boeing. We are satisfying at the present position, and I think we will succeed even when seeing from the present context. Boeing is globally successful, and large-scale airlines are selecting it. The U.S. and Europe are using Boeing, and especially 737 is doing great. As the affiliate of Asiana Airlines, ‘Air Seoul,’ as well as ‘Air Busan,’ is one of the airlines that do not use Boeing’s models. From now on, Boeing will strengthen close cooperation with two companies.

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