Boeing Global Aviation Market Prospect Press Conference

Published : Friday, December 29, 2017, 1:36 pm
ACROFAN=Jae-Yong Ryu | | SNS
Boeing held a press conference on the global aviation market prospect at its Korea branch office on June 16 and expected the traffic volume in Northeast Asia to grow by 2.2% annually over the next 20 years on the strength of the rapid growth of low-cost aviation market in Korea.

Randy Tinseth, vice president of marketing for Boeing commercial airplanes, said Korea's low-cost airlines account for more than 50 percent of the domestic market, which is the highest level in Northeast Asia.

Introducing Boeing's outlook for the next 20 years for Notheast Aisa, Tinseth said, "Due to the rapid growth of low-cost airlines in Korea, the number of annual travelers to and from Korea since 2010 has doubled and continues to record. On the strength of the revival of the middle class and the increased number of flights to new destinations, the number of travelers will continue to increase over the next 20 years."

▲ Randy Tinseth, vice president of marketing for Boeing commercial airplanes, introduced Boeing's outlook for the next 20 years for Northeast Asia.

Boeing expects airlines in Northeast Asia will need 1,470 units between 2017 and 2036, and a new commercial aircraft worth more than US $320 billion. Based on this, a total of 1,510 aircraft will be operated by 2036.

Approximately 620 units, which is about half of these aircraft, will be occupied by widebody models such as the 787 and 777, and other 660 units will be narrow-body models such as 737 MAX and 660.

Tinseth foresees that large network airlines in Northeast Asia region will reconfigure operating aircraft to meet dynamic market needs.

He said, "Over the past two decades, large network airlines in the region have opted for changes to increase the number of flights and destinations, instead of reducing the number of seats by 20 percent." He also stated, "These changes demonstrate that efficient new widebody aircrafts such as the Boeing 787 are contributing to expanding the market and leading customers to new destinations. “

Korean Air, which is actively responding to these changes in the aviation market, is headed by the first 787 Dreamliner earlier this year and plans to operate five of the ten 787s ordered by the end of 2017.

▲ The global trend is driven by LCC and increasing demand for air travel, driven by demand or technological innovation.

Global airfreight volume increased 8% from last year and domestic airfreight market profitability rebounded. In Korea, airfreight volumes of Korean Air and Asiana increased 12% and 15% respectively in the second quarter of this year. Boeing expects to introduce 130 medium-sized freightters worth US $50 billion over the next 20 years.

Tinseth said, "The airfreight market achieved the most successful first half-year performance since the global financial crisis in 2010. With Asian airlines including Korean Air and Asiana Airlines, all the regions are growing this year. New efficient freighters such as Boeing 747-8F and 777F currently operated by Korean Air will contribute significantly to the airfreight market in the future."

Boeing foresees that airlines around the world will invest US $ 6.1 trillion for delivery of 41,030 new aircraft over the next 20 years. More detailed prospects can be found on the web page.

▲ Boeing has a proven civil aircraft lineup ranging from single-passenger compact aircrafts to widebody bumper-type aircrafts.

▲ The 787, which had been produced 12 units in a month, will be produced 14 units by 2019. Victory of technology innovation.

Q1. (Acrofan) ADEX 2017 will start from October 17th. Today, there is also an IPO host company announcement by T'way Air. In addition, domestic LCC companies are becoming increasingly popular. In the midst of this trend, last week, Airbus announced to launch and showcase A330neo. What is Boeing's response plan?

(Randy Tinseth) Boeing is also participating in ADEX 2017. A simulator will be installed on site to provide opportunity to the flight of 787. In the airshow site, we plan to take both a commercial and military approach. I think it was a good thing to have introduced A330neo aircraft on Airbus earlier. Because they are in a situation where they have to make an urgent order. This sounds like a humor. Looking at the market, LCC performance was very good. What would be the next step? In the previous examples, LCCs are aiming to operate longer distances. Looking at other LCCs around the world, Scoop and Jetstar, which operate 787 model, are already in business. In the long term, it is expected that LCCs will aim at this model.

Q2. With the opening of Incheon International Airport Terminal 2, expect to the increase of the number of flight slots for accommodating widebody models in relation to long distance routes is huge. At Boeing, do you think the opening of Terminal 2 will contribute to increasing aircraft demand?

(Randy Tinseth) Basically, I think that long-term growth plan is very important for the organization. One step of long-term growth at Incheon International Airport will be the opening of Terminal 2. This provides better service in long-term to customers based in Seoul, and improves cargo transportation performance to and from Korea. Of course, with the opening of a new terminal, the market will be expanded and better services will be provided. This will eventually lead to more opportunities for all airlines to and from Korea. It will not only contribute to the LCC and the network in Korea, it will be useful for everyone who travels to Korea.

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