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Taiwan aviation sector set for continued growth: Boeing

Boeing expects Taiwan’s commercial aviation sector to sustain continued growth for next 20 years

Randy Tinseth, Vice President of Commercial Marketing at Boeing speaking in Taipei on Oct. 23 (Photo courtesy of the Boeing Company)

Randy Tinseth, Vice President of Commercial Marketing at Boeing speaking in Taipei on Oct. 23 (Photo courtesy of the Boeing Company)

TAIPEI (Taiwan News) – Taiwan’s commercial aviation sector is set for continued growth over the long term, off the back of sustained demand and economic growth, according to Randy Tinseth, Vice President of Commercial Marketing at Boeing.

Boeing’s projections suggest that the aviation industry in Northeast Asia will grow by an annual average of 2 percent over the next 20 years, and Tinseth said Taiwan’s growth will be somewhat higher than that, as Taiwan’s aviation demand is stronger than the region, and its economy has recently performed well.

Tinseth spoke to the media about Boeing’s view of the aviation market, and Boeing’s offerings during a press event in Taipei on Oct. 23.

Tinseth said that Taiwan’s aviation market has doubled in size over the past 10 years, and has grown above worldwide trends. This growth is caused by a rebound of air freight and increased tourism.

“The resurgence in air cargo over the past couple of years has resulted in increased revenue for both China Airlines and EVA Air,” said Tinseth. “In fact, year-to-date, yields for both carriers are up by double digits.”

“Deregulation and open skies have played an integral role in the growth of tourism in Taiwan and ultimately increased passenger traffic,” Tinseth said.

Taiwan’s airports have become significantly busier in 2018, with an additional 30 new flight routes announced so far, with the majority of flights servicing Japan or Southeast Asia.

The Northeast Asia region is expected to buy 1,450 new airplanes by 2037, at a total value of US$310 billion.

The majority of these new airplanes will be used to replace older models, and 450 new planes are expected to be added to cater to growing demand. Tinseth reckoned that this process has already begun, and is exemplified by EVA Air replacing older models with Boeing’s new 787-9 Dreamliner.

The aviation market in Northeast Asia is distinctly different from the rest of the world, due to the region’s great demand for twin-isle aircraft, over single-isle aircraft. Tinseth explained this is due to the region’s lack of domestic aviation demand.

Taiwan aviation sector set for continued growth: Boeing
Randy Tinseth speaking in Taipei on Oct. 23. (Photo courtesy of the Boeing Company)

According to Boeing’s analysis, the global commercial aviation market has seen above trend growth since 2010, and this is set to continue throughout the long term, or next 20 years. Tinseth described the global market as better balanced and more resilient than any time before, due to the emergence of Asia as perhaps the most significant region.

Over the long-term, Southeast Asia is expected to become one of most active aviation areas globally, as a consequence of increased demand for air travel as economic development propels the region. Tinseth suggested a growth area within the Southeast Asian aviation market is the low-cost airline category, which is expected to continue good growth into the future.

When asked about the U.S.-China trade war, Tinseth said that Boeing is an international company with 80 percent of its products sold outside of the U.S., and as such the company supports free trade. Boeing will continue to explain its position to governments, and attempt to strengthen its relationship with its customers to best deal with market distortions caused by tariffs, he added.

Updated : 2022-01-28 12:58 GMT+08:00