Steady economic growth and a burgeoning middle class are driving the need for more airplanes and expanded aviation services in the fast-growing Asia-Pacific region.
Many airlines in this region are turning to outside providers for maintenance, repair and overhaul (MRO) services, and Boeing’s Asia Pacific Aviation Services Pte. Ltd. joint venture with the SIA Engineering Company in Singapore is well-positioned to meet those needs, Tonya DelMaestro, chief marketing officer for Boeing Global Services told journalists and attendees at the recent MRO Asia-Pacific conference in Singapore. The joint venture was established to provide MRO expertise and fleet maintenance solutions to airlines and cargo carriers, helping to maximize the value of the airplanes. DelMaestro also highlighted the presence of the Boeing Training and Professional Services campus in Singapore, the largest commercial aviation training facility in Asia.
“By having our Boeing technical teams close by, along with a data-driven supply chain, we are able to be more responsive to our customers,” said DelMaestro. “Boeing Global Services was created for that very reason – to focus on helping our customers ensure that their operations and businesses are successful, by offering the best options for services and solutions that will support the entire lifecycle of the fleet.”
DelMaestro was among thousands of representatives from airlines, manufacturers and aviation services companies who attended this conference that shines a spotlight on an array of MRO services topics, including aviation maintenance and parts logistics planning, and digital solutions supporting the efficiency of fleet operations.
She participated in a panel discussion on “The Next Wave of Digital Solutions”, and hosted a roundtable with media representatives to discuss the Boeing Services Market Outlook, focusing on aviation growth projections for the Asia-Pacific region.
The Asia-Pacific region is home to approximately 60% of the world’s population, and is expected to generate a 58% increase in economic growth over the next 20 years. With its projected steady contributions to the global economy, the Asia-Pacific region is expected to generate remarkable growth for the commercial aviation industry.
According to the 2019 Boeing Services Market Outlook report, over the next 20 years approximately 40% of all new commercial airplane deliveries will go to the Asia-Pacific region. Air cargo growth in the region will also require more than 1,000 dedicated freighters to meet market demand. Passenger-to-freighter airplane conversions will make up two-thirds of those freighters, as airlines retire passenger airplanes from their fleets.
This increase in commercial airplane deliveries will in turn drive the need for aviation services. Over the next 20 years, Boeing projects the demand for aviation services in Asia-Pacific will expand by 5.1%, or $3,480 billion.
The key factors contributing to regional growth include a growing economy that is boosting the middle class’s size and purchasing power, which in turn will increase demand for air travel. Today more than half the Asia-Pacific population is considered middle class. By 2033, this number is projected to rise to nearly 75% of the region’s total population.
The express cargo market also is predicted to continue to grow, largely fueled by the popularity and convenience of e-commerce services.
With an eye on that future, DelMaestro said the conference served as “a great meeting hub” to learn what is happening across the aviation industry and a rapidly growing region.
“This was a great opportunity to be able to engage with customers, partners and journalists and share our ideas about how we can improve operational efficiency for the commercial aviation fleets of the future – for the industry as a whole, and at the individual airline level.” she said.
More information on the Asia-Pacific region Commercial Market Outlook report is available here.