Boeing predicts huge traffic surge in Asia-Pacific

On the eve of the Singapore Airshow, Boeing forecast the fleet of aircraft in the region would triple in size over the next two decades, sparking demand for close to 13,000 more planes valued at 1.15 trillion pounds.

Air travel has surged in the region, driven by a rise in disposable incomes and low air fares offered by budget carriers, notably in Southeast Asia.

But Randy Tinseth, vice-president of marketing at Boeing Commercial Airplanes, sounded a note of caution, saying market conditions were being monitored closely for any signs of overcapacity.

“We are watching what’s happening here in terms of currencies and in terms of economic growth,” he said.

After years of explosive growth, the region’s budget carriers now face the possibility of overcapacity as deliveries accelerate, airlines expand into each other’s markets and currency weakness threatens to dent economic growth.

By the end of the year, airlines in Southeast Asia will have 1,800 planes, while their order book is set to surpass the 2,000 mark.

This week’s Singapore Airshow, Asia’s biggest aerospace event, attracts the world’s major commercial and defence manufacturers, as well as buyers in the form of airlines and military top brass. Billions of dollars in deals are likely to be finalised.

Boeing estimated Asia-Pacific’s fleet size would blow out to 14,750 over the next 20 years, from 5,090 in 2012.

“Asia Pacific economies and passenger traffic continue to exhibit strong growth,” Tinseth said.

“Over the next 20 years, nearly half of the world’s air traffic growth will be driven by travel to, from or within the region.”

Similarly, rival Airbus sees Asia-Pacific as a lucrative market.