Singapore - The rapid growth of Chinese airlines and the emergence of new low-cost operators throughout Asia have been written down billions in the order books of aircraft manufacturers. At the Singapore Air Show (February 6 - 11), Airbus and Boeing will outline how they will continue to benefit from this boom.
Asia is the fastest growing market in the world. The International Air Transport Association (IATA) estimates that up to 3.5 billion people in the Asia-Pacific region will use the airlines for travel by 2036, nearly double compared to North America and Europe combined.
Boeing claims that the airlines in the region will need 16,050 new aircraft worth of $2.5 trillion to meet this demand.
After the mega-deals over the past decade, Airbus and Boeing continue to attract Asian customers intensively, as airlines in China, India and Southeast Asia continue to grow.
China is the market leader in Asia and likely to overtake the US in 2022, two years earlier than originally expected, according to market analysts. Purchases from the Asia-Pacific region already account for the highest amount in the Airbus and Boeing order books. Boeing estimates that, 39% of the total demand will come from the region by 2036.
Full-service airlines in Asia are currently losing some of their market share to their low-cost competitors. In Singapore, budget airlines already control half of the market. The crowd has reduced earnings per passenger and forced companies such as Cathay Pacific and Singapore Airlines to revise their business model.
Beijing is expected to spend $12.9 billion for infrastructure of the airports by 2019, which will finally turn the Chinese capital into one of the world's largest hubs.
The Suvarnabhumi Airport in Bangkok is to be renovated by 2021 for 3.7 billion dollars and expanded by a third runway. South Korea's Incheon International Airport has invested $ 4.6 billion in a second terminal to become the world's largest hub airport.
But analysts say they are not enough to keep up with the rapid development of the aviation market in the region.