US giant Boeing Co and Europe's Airbus Industrie are vying for dominance of Asia's aviation industry as the sector emerges from the turbulence triggered by the September 11 US terrorist attacks.
China has emerged as a key battleground with the restructuring of its civil aviation industry, while Japan is another major market, said industry players who attended the Asian Aerospace 2002 conference and exhibition here.
Deals worth nearly US$3.2 billion were signed during the event, which ended on Sunday. Although no contracts were announced by Boeing and Airbus, both said they were looking at the long-term market.
"We have very good reason to be optimistic about this sector in the next few months," Singapore's DBS Vickers Securities said in a forecast of the region's aviation industry.
"It is pretty clear that abundant potential upside remains as airlines report their FY01 (fiscal year 2001) results and start to recover in 2002," it said.
Boeing said it expects Asia to become the biggest market for commercial planes in two decades, with an estimated requirement for more than 5,220 aircraft valued at US$537 billion.
Larry Dickenson, senior vice-president for sales of Boeing Commercial Planes, said the region's share of world air travel is forecast to increase to 19 per cent by 2020.
"That's a substantial increase, and it's an increase being driven by Asia-Pacific passengers who are travelling in greater numbers for both leisure and business," he said.
Dickenson said Boeing has made "significant" investments in China because it was "bullish" about the country.
China is projected by US investment Bank Lehman Brothers to dislodge Japan as the world's second-largest economy within 30 years.
Boeing said its planes account for 73 percent of the Asian widebody commercial plane fleet. It delivered 66 planes valued at US$8.7 billion in Asia last year.
Airbus President and Chief Executive Noel Forgeard said the Europe-based company, hurt by a wave of order cancellations last year, should deliver 300 large commercial aircraft worldwide this year and maintain the same level of sales in 2003.
Singapore Airlines will be the first carrier in the world to fly Airbus' 555-seater A380 superjumbo, the largest civilian aircraft in the world, by the first quarter of 2006, to be followed by Australia's Qantas, Forgeard said.
The superjumbo is on track to meet its roll-out date, Forgeard said.
Boeing hopes its latest version of the 747-400 series model, the 747X Quiet Long Range, or 747XQLR, will prove to be a market leader. It promises to fly longer distances at lower noise levels and should be ready in early 2004.
The rivalry should be most intense in China, where both have an equal market share, and Japan, where Boeing leads.
DBS Vickers in Singapore said that with China's entry into the World Trade Organization, flights to and from the country by foreign competitors should also increase, DBS Vickers said.
( China Daily March 4, 2002)
