Economic growth, aviation deregulation, a growing middle class and aggressive tourism marketing continue to drive business in the regional markets of Asia-Pacific, where well entrenched budget carriers such as Malaysia’s AirAsia and Indonesia’s Lion Air face increasing competition from new low-cost startups. In neighboring India, three of every four airline seats now belong to budget carriers.
The Association of Southeast Asian Nations (Asean) open-skies agreement, to be implemented by 2015, will open up big business in the region for aircraft OEMs, according to Dinesh Keskar, Boeing Commercial Airplanes senior v-p of sales Asia-Pacific and India. The agreement is intended to boost connectivity and increase traffic growth by granting open market access to all international airports in Southeast Asia to airlines of the 10 Asean member states.
India lost 9 percent of its airline seat capacity as a result of Kingfisher suspending operations since October 1, 2012, when its 66-aircraft fleet was grounded, according to Dinesh Keskar, Boeing’s senior sales vice president for Asia Pacific and India.
Air India plans to finally take off with its first Boeing 787 tomorrow on a flight to Delhi from Charleston, South Carolina, following an impromptu delivery ceremony today and months of bureaucratic wrangling over program delay compensation.
With leasing companies taking positions on Boeing’s new 737 Max, the Asia-Pacific region holds the key to large narrowbody orders, according to Boeing’s senior vice president of sales for Asia Pacific and India, Dinesh Keskar. “We have three potential customers in India and more in Asia [that can take the Max] on lease or direct buy: Jet Airways, SpiceJet and even Air India Express,” he told AIN. “[The Max] can go 500 additional miles, which will be a big boon for the Asian market.”