Home' Asian Aviation : AAV March 2016 Contents 16 AsianAviation | MARCH 2016
SINGAPORE AIRSHOW NEWS
positive on Asia-Pacific
Lufthansa Technik (LT) is hoping to capitalise
on its strong presence in Asia-Pacific as
the region is set to overtake North and
South America combined as the biggest
maintenance, repair and overhaul (MRO)
market in the world by 2020, CEO Dr.
Johannes Bussman said at the show.
The greatest MRO growth through to 2020
is expected to occur in the Asia-Pacific region –
rising from 27 percent of the global business in
2014 to 34 percent in 2020.
LT already has a strong presence in the
region, with 135 customers and regional
subsidiaries and joint ventures including Ameco
Beijing, LT Philippines, LT Shenzhen, LT Services
India, ASSB Airfoil Services and LT Logistic
Services AP, having been established in the
region for 25 years. The company employs
4,000 people in the region, not including
Ameco Beijing, its biggest subsidiary.
“It’s a good base for us to continue to grow
from. A couple of years down the road I expect
additional opportunities in the region,” says
Bussman. “We want to intensify our presence
here and we will keep doing so,” he says,
adding that there are a couple of areas in
which it can grow, pointing in particular to
narrow-body base maintenance. “It’s a hole we
have in our portfolio here,” he says.
LT is “in talks with partners continually” on
potential in the region, with a base partner
required for future expansion. “We are in
talks with a couple of airline partners in the
region. Two years from now then maybe we
will have one or more [partnerships] to talk
about,” he adds.
A presence in Asia-Pacific will play a major
role in the future, believes Bussmann. “We will
intensify our product footprint in the region,”
he says. “We understand that Asia differs
from Europe,” he says, pointing to the need to
Lufthansa Technik has
a strong presence
in the Asia-Pacific
region, including in
he 2016 Singapore Airshow roared into
town like a lion, but went out like the
proverbial lamb for those keeping score in
terms of the total worth of the deals done.
Trade show organiser Experia said at the conclusion
of the trade segment that 11 deals worth US$12.7
billion were announced, down sharply from 2014’s
20 deals worth US$32 million.
The organiser tried to put a brave face on the
amount by saying that a total of 51 deals were done
this year compared to the 44 completed in 2014 and
said a total of 41 deals were done with undisclosed
values compared to 24 at the last show.
“In line with changing business trends, and
as the industry becomes more sophisticated
and competitive, a growing proportion of the
announcements and deals included undisclosed
values,” Experia officials said.
Analysts on hand at the show also said airlines
had made large acquisitions in recent years and
were in the process of absorbing those new planes
into their fleets.
Below is a brief recap of some of the larger deals.
Other deals and agreements are outlined in the
Engine maker CFM International, a joint venture
between GE and Safran scored a $4.9 billion order
from Transportation Partners, the leasing unit of
Lion Group while low-cost carrier VietJet Air signed
a US$3.04 billion contract with U.S . engine giant
Pratt & Whitney for engines to be installed on 63
A320 and A321 planes ordered by VietJet. VietJet
has a current fleet of 34 A320 and A321 planes and
said it has plans to buy or lease 107 aircraft over
the next 10 years.
Lion City’s roar
drops to a purr
A decided market shift affected sales announced at the 2016 Singapore Airshow
thanks to airlines digesting earlier large acquisitions, low oil prices that are keeping
older equipment flying and airlines taking a wait-and-see approach to fleet expansion.
Matt Driskill recaps the highlights.
AIRBUS & BOEING
The European stalwart scored a US$1.8 billion order
for six A350-900s from Philippine Airlines with options
for another six. PAL officials said the first plane will be
delivered by the end of 2018 with two others arriving
in the first half of 2019 and said their plans for the
planes include non-stop flights from Manila to the
West Coast of the U.S . as well as New York.
PAL president Jaime Bautista said “after a
thorough commercial and technical evaluation, the
A350 came out on top in meeting our requirements”
and said the aircraft’s range was an important factor
in choosing the plane.
Boeing managed to keep pace with its US$1.3
billion sale of 12 737s to Chinese low-cost carrier
Okay Airways. Of the 12 on order, 11 will be 737
Max models and the deal includes options for
another eight 737 Max models, Boeing said in
announcing the deal.
Okay officials on hand at the show said the airline,
which currently has a fleet of 18 aircraft, expects
to increase that number to 80 by 2020 and was
considering buying wide-body aircraft in the future to
expand its capacity and perhaps to fly to destinations
that offer visa-free travel for Chinese flyers.
Boeing also said it won a US$440 million deal
with Papua New Guinea’s Air Niugini, for four 737
MAX 8 planes.
Japan’s Mitsubishi Aircraft Corp also scored 20
orders from Florida-based Aerolease for its new
regional passenger plane in a deal that could be
worth up to US$940 million. The deal for the MRJ90
jets is a coup for Mitsubishi after it postponed
delivery of the plane in December.
3/03/2016 7:14:43 PM
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