Singapore Airshow sees deals worth $32b

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AirshowThe Singapore Airshow 2014 saw deals announced worth $32 billion, surpassing the value of deals announced in 2012. Major announcements include contracts for Airbus, Embraer, Boeing and Rolls-Royce. The airshow, which ended on February 16, played host to over 1,000 exhibitors from 47 countries and 279 delegations from 72 countries.

In all, over 40,000 trade visitors from 125 countries visited the show during the first three trade days, compared to some 38,000 in 2012. Of these, 33 per cent were from overseas. 72 per cent of exhibitors from this year’s airshow have already reaffirmed their plans to exhibit at the next Airshow in 2016, to be held from February 16 to 21 again at the Changi Exhibition Center.

At the show, it turned out that smaller passenger planes are increasingly in demand in Asia as budget carriers cash in on the region’s growing middle classes by expanding their reach to less prominent cities. So-called ”regional” jets – short to medium-haul aircraft that generally seat under 100 passengers – were among the best-sellers at the Singapore Airshow which ended at the weekend.

Embraer, the Brazilian plane maker, forecasts that Asia-Pacific carriers will take delivery of 1,500 new jets in the 70- to 130-seat segment over the next 20 years, with a total value of $70 billion. This would represent nearly 20 percent of global demand. Canada’s Bombardier expects the region to get one-third of the 12,800 aircraft in the 20 to 150-seat segment it forecasts to be delivered worldwide in the next two decades.

Four-month-old Indian carrier Air Costa sprang the biggest surprise at the event when it ordered 50 E-Jets E2 planes from Brazilian manufacturer Embraer worth $2.94 billion, with purchase rights for 50 more. Air Costa wants to connect cities in southern India such as Bangalore, Chennai, Hyderabad and Vijayawada, as well as key secondary cities in the country’s north and northwest.

Bangkok Airways, which describes itself as a ”boutique” airline that serves popular tourist destinations in the country as well as the Maldives, Laos and Cambodia, ordered six 72-600 planes from European plane maker ATR for $150 million. Budget carrier Nok Air ordered two Q4 100 aircraft – which can seat 70-80 passengers – from Bombardier to help it expand into smaller cities in Thailand and neighbouring countries, and may buy six more.Nok Air chief executive Patee Sarasin said the airline’s strategy is to use 33-seater planes to penetrate small towns and stimulate air travel, and then to increase frequency or use bigger aircraft as demand rises.

”There are so many airports in Thailand that are underutilised and so many towns that are underdeveloped in terms of the flying experience,” Patee said.

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Reading Time: 2 minutes

The Singapore Airshow 2014 saw deals announced worth $32 billion, surpassing the value of deals announced in 2012. Major announcements include contracts for Airbus, Embraer, Boeing and Rolls-Royce. The airshow, which ended on February 16, played host to over 1,000 exhibitors from 47 countries and 279 delegations from 72 countries.

Reading Time: 2 minutes

AirshowThe Singapore Airshow 2014 saw deals announced worth $32 billion, surpassing the value of deals announced in 2012. Major announcements include contracts for Airbus, Embraer, Boeing and Rolls-Royce. The airshow, which ended on February 16, played host to over 1,000 exhibitors from 47 countries and 279 delegations from 72 countries.

In all, over 40,000 trade visitors from 125 countries visited the show during the first three trade days, compared to some 38,000 in 2012. Of these, 33 per cent were from overseas. 72 per cent of exhibitors from this year’s airshow have already reaffirmed their plans to exhibit at the next Airshow in 2016, to be held from February 16 to 21 again at the Changi Exhibition Center.

At the show, it turned out that smaller passenger planes are increasingly in demand in Asia as budget carriers cash in on the region’s growing middle classes by expanding their reach to less prominent cities. So-called ”regional” jets – short to medium-haul aircraft that generally seat under 100 passengers – were among the best-sellers at the Singapore Airshow which ended at the weekend.

Embraer, the Brazilian plane maker, forecasts that Asia-Pacific carriers will take delivery of 1,500 new jets in the 70- to 130-seat segment over the next 20 years, with a total value of $70 billion. This would represent nearly 20 percent of global demand. Canada’s Bombardier expects the region to get one-third of the 12,800 aircraft in the 20 to 150-seat segment it forecasts to be delivered worldwide in the next two decades.

Four-month-old Indian carrier Air Costa sprang the biggest surprise at the event when it ordered 50 E-Jets E2 planes from Brazilian manufacturer Embraer worth $2.94 billion, with purchase rights for 50 more. Air Costa wants to connect cities in southern India such as Bangalore, Chennai, Hyderabad and Vijayawada, as well as key secondary cities in the country’s north and northwest.

Bangkok Airways, which describes itself as a ”boutique” airline that serves popular tourist destinations in the country as well as the Maldives, Laos and Cambodia, ordered six 72-600 planes from European plane maker ATR for $150 million. Budget carrier Nok Air ordered two Q4 100 aircraft – which can seat 70-80 passengers – from Bombardier to help it expand into smaller cities in Thailand and neighbouring countries, and may buy six more.Nok Air chief executive Patee Sarasin said the airline’s strategy is to use 33-seater planes to penetrate small towns and stimulate air travel, and then to increase frequency or use bigger aircraft as demand rises.

”There are so many airports in Thailand that are underutilised and so many towns that are underdeveloped in terms of the flying experience,” Patee said.

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