The market continues to thrive
Oceania is a dynamic region of roughly 40 million people. Total air traffic is forecast to continue to grow at the annual rate of 4.8 percent over the next 20 years as connections to the neighboring Asia Pacific region and other world regions improve. Traffic growth within Oceania will slightly lag the overall rate, at 4.7 percent. Capacity between Oceania and Southeast Asia, the primary gateway to other world regions, is forecast to increase 5.1 percent per year. In addition, continued expansion of trade and tourism will spur the opening of more flights and new markets to North America, the Middle East, and China. Middle East airlines, bridging Oceania to Europe and Africa via stops in the Middle East, are forecast to spur the Middle East traffic flow to increase 6.5 percent. Traffic between China and Oceania will grow a robust 6.6 percent per year.
The region's airlines continue to evolve
Airlines within Oceania continue to evolve in response to economic conditions and competition. Airlines based in the Middle East, China, and Southeast Asia continue to rapidly increase their capacity to and from Oceania. The Qantas-owned low-cost carrier (LCC), Jetstar, continues to expand its cobranded subsidiaries throughout Asia. In 2013, Qantas entered a 10-year partnership with Emirates to collaborate on routes, pricing, scheduling, and other important aspects of operations. Virgin Australia acquired a major share of Tigerair Australia. Etihad Airways, Singapore Airlines, and Air New Zealand acquired ownership shares of Virgin Australia. The first 787s in the region arrived at Jetstar in 2013, allowing the airline to begin medium-haul LCC operations.
New airplanes are needed in the region
There will be a continual need for new airplanes in the region as traffic increases and airlines evolve. Over the next 20 years, Oceania is expected to need 1,000 new airplane deliveries, of which 760 will be single-aisle airplanes to transport people within the region or to nearby Southeast Asia. To meet demand for travel across the globe, 240 widebody airplanes will be required, of which approximately 160 will be small widebodies, 50 will be medium widebodies, and 30 will be large widebodies.