Moves toward Open Skies within the ASEAN (Association of South East Asian Nations) region and galloping growth of Indian air transport amount to perhaps the most influential factors in Boeing’s ever more bullish projections for both markets in its 20-year Current Market Outlook (CMO) for 2015 to 2034. In its most recent forecast, Boeing has raised its 20-year projection for India from 1,600 to 1,740 airplanes worth $240 billion. Meanwhile, Boeing expects the Asia-Pacific region to account for 40 percent share of the world’s market, or 14,330 airplanes worth $2.2 trillion.  

“ASEAN Open Skies is good for us…Our potential for sales will obviously go up," Boeing Commercial Airplanes vice president for Asia Pacific and India sales Dinesh Keskar told AIN on a recent visit to New Delhi. “That is why you see carriers like Viet Jet, Lion Air and AirAsia opening up in each other’s countries. This will allow business to grow and help passengers get lower rates…as long as fuel stays in the $60- to $70 a barrel range.”

The ASEAN Single Aviation Market that took effect officially on January 1 in principle allows for free competition and liberalized foreign ownership. While presently limited to flights between capital cities with a cap on slots, plans call for it to eventually include secondary cities.

Meanwhile, the joint venture between SIA Engineering and Boeing Singapore recently cleared by the Competition Commission of Singapore should help satisfy aftermarket needs of growing airlines in the region. “Airlines want to focus and not worry about mundane tasks like sourcing parts and ‘C’ Checks,” said Keskar. He added work has already started on the maintenance of Boeing 787s flown by Singapore Airlines budget subsidiary Scoot and SIA’s own 777-300ERs under Boeing’s Gold Care program. “That takes over the entire logistics of fleet and inventory management and MRO for a fixed fee per hour,” he added.

Boeing has also begun exploring the possibility of expanding the program to India, where, said Keskar,  “we will certainly talk to SpiceJet and Jet Airways.”

“And, while Air India has this big hangar and might not need it right now, it might be interested in some aspects of Gold Care," he added. "Having this joint venture in Singapore is going to extend our ability to add value-added services.”

Boeing recently finished the construction of a two-bay hangar in Nagpur, in the western state of Maharashtra, for two 777s or six 737s. The project represents part of a $1.7 billion offset commitment for a 68-aircraft, $11 billion order from by Air India in 2005 for Boeing 737s, 777s and 787s. Engineers held load trials in May using a 777 to test the Code E compliant taxiway. Air India recently completed the first major 777 check with Directorate General of Civil Aviation approval in June.