Market Intelligence: -Airline Aircraft Orders

“India Will Lead South Asia To Become Fastest-Growing Commercial Aviation Market” – Boeing

  • India’s robust economy and emerging middle class driving annual traffic growth of 8%
  • South Asian carriers to add more than 2,700 planes over 20 years — quadrupling the region’s current fleet

Boeing forecasts the South Asia region will become the fastest-growing commercial aviation market with more than 8% annual traffic growth over the next 20 years. Supported by a strong economy, India’s rapidly expanding middle class will drive growth in regional air travel.

To meet rising passenger and cargo demand, South Asian carriers are projected to quadruple the size of their fleets over the next two decades. Carriers will require more than 2,700 new airplanes to address growth and fleet replacement, according to Boeing’s Commercial Market Outlook (CMO), an annual forecast of 20-year demand for commercial airplanes and related services.

“Indian low-cost carriers continue to stimulate demand and connect emerging regions with low fares, holding nearly a 90% share of all domestic seats in the region. This reflects the rapid pace of the region’s recovery and economic activity, as traffic and capacity now exceed pre-pandemic levels,” said Darren Hulst, Boeing vice president of Commercial Marketing.

“Similarly, long-haul traffic and capacity to and from India and South Asia lead the way globally, relative to 2019, as nonstop services to North America, Europe, East Asia and Oceania continue to be added. Strong economic growth and confidence in the commercial aviation market have led to record orders for new, more efficient airplanes in India.”

The South Asia market is expected to quadruple its fleet over the next two decades to meet passenger demand. Boeing forecasts the region will require 37,000 pilots and 38,000 maintenance technicians over the next 20 years, driven primarily from growing demand in India.

The South Asia CMO includes these projections through 2042:

  • Of 2,705 new deliveries, 72% will support fleet growth while 28% will replace older jets with more fuel-efficient models.
  • Single-aisle airplanes will account for more than 85% of new airplane deliveries.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity.

Source: Boeing
Photo Credit: Boeing

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Malaysia Aviation Group Is Set to Induct 12 New Aircraft in 2024, Will Recieve First A330neo in Q3 of This Year

As part of its ongoing fleet modernisation plan, Malaysia Aviation Group (MAG) is set to induct 12 new aircraft in 2024, including its first Airbus 330-900 (A330neo) which is scheduled to arrive in Q3 2024. The Group is looking to receive four (4) of the new aircraft type this year, alongside eight (8) of the Boeing 737-8 aircraft to support its network growth requirements.

In August 2022, MAG signed Memorandum of Understandings (MOU) with Airbus, Rolls-Royce and Avolon for the acquisition of 20 A330neo aircraft which are scheduled to be delivered through to 2028. 10 of the aircraft are directly purchased from Airbus with a back-to-back sale and leaseback arrangement with Avolon, while the remaining 10 are leased directly from Avolon. The acquisition underscores the Group’s steadfast commitment as it seeks to provide modernity and elevate the standards of its service offerings, while ensuring that it can support the post-pandemic growth of the aviation industry.

The A330neo is set to provide improved operational efficiency to the MAG fleet while also allowing it to address environmental targets by offering up to 25% reduction in fuel consumption and emissions. With a 1-2-1 configuration, the newly designed Collins Aerospace Elevation Business Class seats will be a first for the Group, featuring an all-suite cabin with individual privacy doors which prioritises cabin comfort and practicality. The seat covers will feature the signature songket motif, a homage to Malaysia’s cultural heritage seamlessly infused with a modern touch, creating a harmonious blend of tradition and contemporary style. With an all-aisle access layout, the seats ensure a comfortable and fully flat experience, incorporating luxury design influences and optimal styling flexibility.

With the introduction of these new seats, Malaysia Airlines is poised to become the flagship carrier in the world to feature the Elevation seats on the A330 airframe. The A330neo will comprise of 297 seats (28 in Business Class and 269 in Economy Class, of which 24 seats come with extra legroom).

Additional features include wireless charging pods, ergonomic seat cushions, highly integrated in-flight entertainment (IFE) solutions, including Kids mode, and ample space to work, relax, and dine in ultimate comfort. The aircraft will also be fitted with Wi-Fi connectivity, ensuring that passengers can experience a practical cabin space onboard Malaysian Hospitality.

Datuk Captain Izham Ismail, Group Managing Director of MAG, said, “We are excited to induct the first of 20 Airbus A330neo’s in Q3 of this year, which will gradually replace our A330ceo fleet and operate to our network across Asia, Oceania, and the Middle East. This expansion is not just about increasing our inventory in numbers but also introducing the first-of-its-kind cabin class, new seats and experiences that prioritises customer safety, comfort and overall satisfaction. We will continue to channel our investments into endeavours that strategically align with the key pillars driving our customer value proposition, namely cabin comfort, in-flight dining, and service delivery of our esteemed cabin crew. We aspire to curate an overall passenger experience that not only meets premium standards but exceeds them, underpinned by our inimitable Malaysian Hospitality.”

To further strengthen its fleet modernisation programme, the Group will also be retrofitting six (6) of its A350-900s beginning 2026 to ensure consistent cabin standardisation and premium experiences for its guests in alignment with the new A330neo cabin. MAG currently owns a fleet size of 104 through its subsidiaries Malaysia Airlines, Firefly, MASwings and MASkargo.

Source: Malaysia Airlines
Photo Credit: Malaysia Airlines

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