Taiwan's aviation market promising amid regional growth: Boeing
Taipei, Oct. 17 (CNA) The aviation market in Taiwan could continue to surge thanks to growing passenger traffic through the country, with Northeast Asia being one of the most profitable regions for the sector, a Boeing executive said Thursday in Taipei.
"Deregulation and open skies continue to play an important role in the region, creating increased traffic growth from outside of Taiwan," said Randy Tinseth, vice president of Marketing for Boeing Commercial Airplanes.
As a result, airlines like China Airlines (CAL) and EVA Air have continued to renew their wide body fleets over the past several years, he added.
CAL ordered six Boeing 777 freighters in September, following EVA Air's first delivery of 10 out of 20 Boeing 787s, he noted.
Market prospects are good for Taiwan as nearly 2 percent annual growth is projected for Northeast Asia, backed by the strength of growing low-cost carriers (LCCs) and need for aircraft replacement, Tinseth said.
The region will require 1,420 new airplanes, valued at US$315 billion over the next 20 years, according to Tinseth.
In addition to aircraft, the demand for aviation services is looking good globally, with US$9.1 trillion forecast over the same period, Tinseth said, adding that Northeast Asia will make up nearly 40 percent of that total.
The massive in-service fleet in the region will generate strong demand for aviation services ranging from flight training to maintenance and digital analytics tools, he said.
"This will provide Boeing and other service-based businesses in the region with ample opportunities to capitalize on this critical rapidly growing business going forward," Tinseth said.
While Boeing had a tough time in 2019 due to the flaw in its 737 MAX jets, which have been grounded globally since March after two deadly crashes in five months, Tinseth said production of the 737 MAX could speed up after it is back in service.
The return for the narrow body airplanes is scheduled for the fourth quarter, with the exact time up to the regulators, he said.
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