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Asia-Pacific is the wind beneath Airbus’ wings

SINGAPORE — Airbus won 421 net orders from 17 regional airlines and lessors in the Asia-Pacific last year and expects the region to lead demand for new aircraft over the next 20 years, said the plane maker yesterday, as air travel remains a sweet spot amid the global economic uncertainty.

An Airbus A350 flies past during a preview aerial display of the Singapore Airshow at Changi Exhibition Centre. Airbus won 421 net orders from 17 regional airlines and lessors in the Asia-Pacific last year. Photo: Reuters

An Airbus A350 flies past during a preview aerial display of the Singapore Airshow at Changi Exhibition Centre. Airbus won 421 net orders from 17 regional airlines and lessors in the Asia-Pacific last year. Photo: Reuters

SINGAPORE — Airbus won 421 net orders from 17 regional airlines and lessors in the Asia-Pacific last year and expects the region to lead demand for new aircraft over the next 20 years, said the plane maker yesterday, as air travel remains a sweet spot amid the global economic uncertainty.

The orders represent 39 per cent of the company’s net order intake of 1,080 aircraft last year, said Airbus. In addition, it delivered 282 new aircraft to 40 operators across the Asia-Pacific in the 12-month period, either directly or via leasing companies, representing 44 per cent of the company’s total output of 635 aircraft during the year, reflecting the importance of the region to the manufacturer.

“The Asia-Pacific region has traditionally been one of our strongest markets. We expect this trend to continue in the coming years, especially in the wide-body market where the A350XWB is setting new standards in the 300-400 seat category,” said Airbus president and CEO Fabrice Bregier at the Singapore Air Show.

Despite economic headwinds, Mr John Leahy, Airbus’ chief operating officer, Customers, said the company has not received requests from airlines for deferral of the delivery of aircraft.

Last month, Airbus bagged orders for 16 wide-body family aircraft, of which 14 were for its new A330-900neo, from an undisclosed customer, and two A320ceos from the Hong Kong-based lessor, China Aircraft Leasing Company. Including the first A320neo delivered to Germany’s Lufthansa, Airbus also handed over a total of 22 aircraft last month to 18 customers, comprising 17 A320s, four A330s and one A380.

According to Airbus’ Asia-Pacific 20-year market forecast, with an expected annual increase in passenger traffic of 5.6 per cent, the region will require 12,810 new aircraft valued at US$2 trillion (S$2.8 trillion), representing 40 per cent of global demand for 32,600 aircraft during the period. The Asia-Pacific fleet, said Airbus, will grow from 5,600 today to 14,000 over the next 20 years. China, said Mr Leahy, will continue to be a key growth market, reporting double-digit growth.

Rival Boeing was more bullish, saying yesterday that the Asia-Pacificregion will absorb 14,550 aircraft over the period, accounting for more than a third of the 39,050 aircraft required globally. China, according to Boeing, will require about 6,330 new planes worth US$950 billion over the next 20 years, which is about 17 per cent of the global demand.

Like Airbus, Boeing said it did not get any requests for the deferral of deliveries from airlines.

“Our market has been growing. It’s been very resilient, and our customers are making a lot of money,” said Mr Randy Tinseth, vice-president of marketing for Boeing Commercial Airplanes, adding that low oil prices had helped many airlines post record profits.

Despite the plane makers’ optimism, International Air Transport Association director-general Tony Tyler warned that record aircraft orders from South-east Asian airlines could be at risk given intense competition, low profitability and the financial markets rout. WITH AGENCIES

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