By Lee Hyo-sik
Boeing, one of the world’s two dominant airplane manufacturers, plans to expand marketing and other business operations here to capitalize on the rapidly growing Korean aviation market, the company’s marketing chief said Thursday.
Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, said that over 7.9 million international visitors arrived in Korea in 2009, while approximately 11.6 million visitors from Korea flew to other destinations, adding air traffic in Asia’s fourth largest economy will continue to show an upward curve for many years to come.
“Korea is an important market to Boeing. It has strongly rebounded from the recession and is now growing at a pace well ahead of the global economy. An increasing number of liberalized air service agreements between South Korea and other countries should further stimulate air travel,” Tinseth said in a press conference.
He added that Incheon International Airport is well positioned as an Asian gateway and has room for expansion to take on additional flights.
The vice president then mentioned that Boeing has extensive business ties with the domestic aviation industry, noting the company buys a range of airplane parts from 20 Korean suppliers, worth $170 million each year. “We also maintain a strong business partnership with Korean Air and six other airlines here. Nearly 160 Boeing-manufactured airplanes are in service. We have received an order of 51 new airplanes.”
He further commented that the Korean aviation market has been transformed by intense competition, innovations by airlines in the development of new, more efficient aircraft, and the growth of low-cost airlines. “Low-cost airlines are beginning to gain a share in the Korean airline market, accounting for about 22 percent of all domestic seats in 2009.”
He projected that airlines in Korea and Japan will require 1,210 new airplanes valued at approximately $190 billion over the next two decades. “There has and will be strong demand for new, more fuel-efficient twin-aisle airplanes, such as Boeing’s long-range 787 Dreamliner and the 777 family. They will account for 45 percent of the 1,210 new airplanes required over the next 20 years.”
Approximately one-third of all airline traffic flies through the Asia-Pacific region, forecasting almost 43 percent of all traffic by 2029 will be to, from, or within this region.