Boeing and Airbus Foresee Strong Growth In Asian Market

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Recent press releases by both Airbus and Boeing reveal that both aircraft manufacturers are still predicting strong long term and short term growth in Asia. At a time when aircraft and airline demand is quite dismal in North America and parts of Europe, strong economic growth in Asia has resulted in demand going through the roof in this area of the world. This is mostly due to the shift in wealth that is taking place throughout the world, which has resulted in more people in Asia being able to afford traveling by air. As the economic prosperity of these countries continues to increase this demand for air travel will certainly follow, as flying is viewed in most areas as a luxury that is not affordable for most. The overall increase in wealth for the Asian region is not only resulting in increased demand for airlines but also for private aircraft as well.

This is good news for aircraft manufacturers, which are one of the most “international” business sectors in the world. There are few companies that can match the diverse customer base that both Airbus and Boeing rely upon. This means that even though the economic conditions in their respective countries are struggling, they can rely upon the strong position of the emerging economies in Asia. While this increased demand has been a blessing for both manufacturers, there are challenges that accompany this growth. For example, Boeing recently released information that states they anticipate a severe shortage of qualified pilots in most areas of Asia within the next 20 years.

It is no surprise that the majority of this demand will come from China, which is slated to need an additional 72,700 new pilots and 108,300 new technicians. This takes into account those who will be retiring as well as the new positions created due to increased demand. This is a staggering number that is troubling in a time when the prospect of being a pilot is not a very desirable job. While in the past pilots where given VIP treatment similar to a rock star, the days of glamorous travel are gone. As a whole we now view travel as a means to an end, rather than a experience all its own. There are a variety of reasons that have contributed to this change but the fact remains that becoming a pilot is not a job path sought out by the masses. This has resulted in Boeing undertaking efforts to entice young students into a path to becoming a pilot. These efforts are aimed at recruiting enough pilots to fill these positions in the next 20 years, in order to keep up with demand in the region. Boeing recognizes that no matter what the demand is, they will only get the orders for new aircraft if there are enough pilots to fly them.

It remains to be seen whether this shift in demand from North America and Western Europe to Asia is a short term event or the new reality. Either way it is important for both manufacturers to embrace this change in demand and react accordingly. Boeing’s efforts seem to be a logical response to an obvious issue they will be faced with in the future. The strong demand that is predicted in this region will hopefully be enough to sustain these manufacturers as the economic woes continue to hamper growth in the US and Western Europe.