Philippines a ‘Very Important’ Market for Airbus, Says Exec


Source: Darwin G. Amojelar, InterAksyon.com

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TOULOUSE, France – With the Philippines’ airlines expanding their fleet, it has become a key market in the Asia Pacific for Airbus, an executive from the European aircraft manufacturer said.

“It’s very important and big market in Asia Pacific,” Simon Azar, manager of Airbus Twin Aisle marketing division, told reporters whom Philippine Airlines (PAL) flew in from Manila.

Data from Airbus showed that PAL and Cebu Pacific have placed a combined 171 aircraft orders, 60 of which had been delivered as of June this year.  Other users of Airbus aircraft are AirAsia Philippines, Zest Airways and Tigerair Philippines.

Both PAL and Cebu Pacific have ordered A330-300 aircraft for their long-haul flight, particularly for the Middle East market.

The Philippines’ two biggest carriers are also eyeing to fly to Europe and the US, with PAL leading the way with the resumption of London flights on November 4.

According to Azar, 35 percent of Airbus’ 5,277 aircraft order backlog came from Asia Pacific, including the Philippines. This was followed by Europe, 18 percent; North America, 12 percent; Middle East, 8 percent and Latin America, 6 percent. Airbus’ aircraft backlog was valued at $735 billion.

“We are busy in the next seven years,” Azar said, adding that emerging markets are driving future growth and represent 50 percent of new aircraft demand over the next 20 years.

In Vietnam, for example, VietJetAir on September 25 signed a memorandum of understanding for up to 92 A320 Family aircraft, including 42 A320neo’s, 14 A320ceo’s and six A321ceo’s. The Vietnamese carrier also has 30 purchase rights for the A320 Family and will lease eight more from third party lessors.

This week, VietJetAir, which already has eight leased A320 aircraft, took delivery of its ninth A320, delivered through leasing company AWAS.

Airbus estimates that two-thirds of the population in emerging countries will take a trip in 2032, with first time flyers and a growing middle class fueling this number to 5.2 billion from 2.2 billion by then.

Growing tourism and liberalization in Asia, Africa and Latin America will be the sources of growth in the next 20 years, Airbus said, with Asia Pacific leading world traffic and growing at a 5.5 percent annual clip.

Alizee Genilloud, Airbus media relations manager for Southeast Asia and Japan, said the Philippines will become one of the eight new aviation megacities worldwide by 2021, with more than 10,000 daily long-haul passengers.

The number of domestic passengers in the Philippines rose by 9.6 percent to 20.56 million last year from 18.77 million in 2011, while international passengers rose by 6.8 to 16.74 million in 2012 from 15.67 million the year before.

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