Adoption of the ASEAN Single Aviation
Market will strongly support efficiencies
and industry growth. Progress continues,
but true “open skies” for the region
will remain elusive for some time. The
more liberalized the region’s air services
become, the more that passengers
and airlines will benefit. Presently, no
plans exist to allow foreign majority
ownership of airlines in the region,
thus the trend of airline-cobranded
subsidiaries will continue to rise.
All told, Boeing forecasts that the region
will need 3,750 new airplanes, valued
at $550 billion, with more than threequarters of new deliveries being singleaisle airplanes. The expansion of the
low-cost carrier business model has been robust and will continue
to stimulate regional growth. Southeast Asia is the world’s most
active region for medium-haul low-cost carriers, which is a
business model with strong growth potential. This expected trend
as well as demand from established long-haul carriers will drive
the need for 800 widebody airplanes over the next two decades.