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Strong tailwinds in South-east Asia boost demand for Boeing commercial airplanes
EMERGING markets such as Indonesia and Myanmar in South-east Asia are pushing up demand and interest in Boeing commercial airplanes.
Boeing told reporters this at a media briefing on Monday, a day before the Singapore Airshow - Asia's largest aerospace event - officially starts.
For the next 20 years, Boeing estimates that the entire Asia-Pacific region - including China and India - will make up 40 per cent of the total deliveries, while South-east Asia in particular will account for 10 per cent.
This will translate to 4,210 new airplanes, worth a combined US$650 billion, over the next two decades in South-east Asia.
"The great thing about this region particularly is that there are a lot of firsts that are happening," said Dinesh Keskar, senior vice-president of sales (Asia-Pacific and India) for Boeing Commercial Airplanes. He cited how Indonesia's Lion Group received the world's first Boeing 737 MAX 8 last year.
In March, Boeing is also going to deliver the first Boeing 787-10 to launch customer Singapore Airlines. Afterwards, Boeing plans to deliver the world's first Boeing 737 MAX 9 to Lion Group.
Mr Keskar also pointed to the areas of growth from markets such as Cambodia and Myanmar. While these markets are currently served by used aircraft, airlines there are beginning to show interest in purchasing new aircraft - such as the new MAXes - especially with the large number of potential passengers, he added. "We are definitely bullish on the region and its future," he said.
Boeing expects an annual traffic growth of 6.2 per cent from the region, which is 1.5 per cent higher than the global average growth rate.