Asia Pacific to Boost Demand For Bigger Modern Aircraft

4th Mar 2013

According to the latest forecast, the biggest customers for modern and more eco-efficient aircraft in the world in the next 20 years will be airlines from Asia-Pacific region. This bold prediction was presented recently by an Airbus CEO in Singapore.

The Asia-Pacific region will account for about 35% of the global aircraft deliveries in the next two decades. This is equal to more than 9,870 aircraft, both for passenger and cargo. The value of all aircraft purchased within the region will account for almost half of the world's total expenditures on commercial aircraft.

In the next 20 years, the combined fleet of all airlines within the region will doubly increase from the current 4,300 to approximately 10,440 jets. This number was based on an average growth of 5.8% per annum and the replacement of close to 3,500 aircraft currently in service.

The high rate of urbanization in Asia-Pacific region can be used as gauge to predict the market demand in air travel within 20 years. Fast-growing cities in the region will become mega cities hosting 10 million or more people who will, in turn, fuel demand for air travel. The growing affluence of the people in these urban sprawls will also mean growing appetite for more sophisticated service in air travel. Along with this demand is the acquisition of larger or wide-body aircraft that will equal to 44% of the world total in number of units or roughly 3,840 jets.

The bulk of these wide-body aircraft acquisition will include 3,080 twin-aisle jets such as the new-generation A330 and A350 XWB aircraft and approximately 760 will be jumbo jets such as the A380. The region will also account 45% of total deliveries for A380 jumbos in the world.

The demand for single-aisle aircraft, according to the forecast, will continue to accelerate given the growing low-cost sector. As a whole, this segment of the industry will outpace air travel in the region, thus the high demand for this type of aircraft. Budget carriers will likely to continue use this type of aircraft for economic reasons.

The average seating capacity for both wide-body and and narrow-body will continue to grow to keep the growing demand. Larger types of aircraft will outpace the narrower type in terms of increased capacity.

The cargo sector in the Asia-Pacific region will definitely outpace all other regions in the world as most of the emerging markets are all located here. It is estimated that the region will have 887 freighter fleet in the next two decades from today's 316. This will represent 30% of the world's total.

The forecast was based on the region's fast-growing economies and cities as well as its rapidly growing population of wealthy people, driving demand for air travel in comfort and style.

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