asia market outlookmromarketing.aviationweek.com/downloads/mas2017/...source: 2017 boeing services...

Copyright © 2017 Boeing. All rights reserved.

David LongridgeVice President, Commercial Services Sales & Marketing

Boeing Commercial AirplanesNovember 2017


The statements contained herein are based on good faith assumptions are to be used for general information purposes only.

These statements do not constitute an offer, promise, warranty or guarantee of performance.

Asia Market Outlook


1955-19566 men in 2 Land Rovers

6 months and 6 days


1979Singapore Airlines Concorde

1 stop, ~9 hoursSOURCE: Steve Fitzgerald - http://www.airliners.net/photo/Singapore-Airlines-(British/Aerospatiale-BAC-Concorde-102/1846825/L/&sid=d64f1a72380ece47cc35c0ad8ca0a598, GFDL 1.2, https://commons.wikimedia.org/w/index.php?curid=16535612


1997Singapore Airlines 747-400

0 or 1 stop, 13~16 hours


2017Singapore Airlines 777-300ER

0 stops, 13~14 hours


SOURCE: ICAO / IATA

Near-record airline profit in 2016

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

201

0

201

1

201

2

201

3

201

4

201

5

201

6

YT

D 2

01

7

Traffic growth rates (RPKs)

-2%

0%

2%

4%

6%

8%

10%

12%

14%

201

0

201

1

201

2

201

3

201

4

201

5

201

6

YT

D 2

01

7

Cargo growth rates (RTKs)

$0

$5

$10

$15

$20

$25

$30

$35

$40

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7 F

Net profit (billions)

T r e n d

20%


0 500 1,000 1,500 2,000 2,500 3,000 3,500

Wtihin Asia*

Within China

Middle East

Europe

North America

CIS

Africa

RPKs (billions)

*Does not include travel within China

Asia

GDP growth:

3.9%

5.7%

6.4%

4.5%

5.4%

6.7%

6.1%

2016 trafficAdded traffic2017 - 2036

Annualgrowth %

3.7%Asia

traffic growth:

5.7%


0

300

600

900

1,200

1,500

Airplane deliveries: 16,0502017 - 2036

Market value: $2,500 billion2017 - 2036

Regional jets<1%

Single-aisle52%

Small paxwidebody

24%

Freighter

4%

0

3,000

6,000

9,000

12,000

Regional jets2%

Single-aisle74%

Small paxwidebody

14%

Freighter

2%

Med/Lg paxwidebody

9%

Med/Lg paxwidebody

20%

270

11,840

2,210

3201,410

$10B

$1,290B

$600B

$110B

$490B

Asia will need 16,050 new airplanes valued at $2.5 trillion

NOTE: market share may not equal 100% due to rounding


Available Seat Miles (ASMs)

SOURCE: Boeing CMOs

62%

20% 55%21%

51%

27%

22%

24%18%

LCC Charter/IT Broad Network Other Networks

2026 20362016


320 new, 630 converted freighters

2017 to 2036Freighters

Delivery units

2016Freighters

330

2036Freighters1,040

Share of fleet

950

0%

20%

40%

60%

80%

100%

480

220

150

100

Large production>80 tonnes

Wide-body conversions40-120 tonnes

Medium wide-body production40-80 tonnes

Standard-body conversions<45 tonnes


Doubling U.S. growth rate going forward

SOURCES: US Dept of Commerce, FTI Consulting, Internet Retailer, China Daily, GB Times, China Xinhua

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2010 2011 2012 2013 2014 2015 2020

49% growth per year

33%45%59%55%54%China on-line retail

sales annual growth

US

A

Ch

ina

15% growth per year15% growth per year

10% growth per year

22% growth per year

E-c

om

me

rce o

nlin

e r

eta

il sa

les, U

SD

bill

ion

s


25% growth -- express freighter fleet has doubled in just 4 years

* Is 737 Classic

0

10

20

30

40

50

60

70

80

90

100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

767

757

737*


38%

21%

21%

9%

6%3%2%

Commercial Aviation Services: $8.5T2017 - 2036

Services by region2017 - 2036

0

1,000

2,000

3,000

4,000

5,000

Corporate & External

3.0%

Marketing& Planning

4.6%

FlightOps

4.1%

Ground, &Cargo Ops

4.1%

Maintenance& Engineering

4.0%

$125B$465B

$1,080B

$4,485B

$2,305B

$8.5T

CAGR

Asia 3,200 5.2%

North America 1,775 2.7%

Europe 1,765 3.0%

Middle East 730 4.8%

Latin America 530 5.0%

CIS 250 3.4%

Africa 210 4.9%

World Total $8,460 4.1%

Region Services | CAGR


Uniting for service strength around the globe

Worldwide presence

Robust service capabilities

Efficient performance


Significant opportunities for growth around the world in the markets we serve

SOURCE: 2017 Boeing Services Market Outlook, Commercial only

SERVICES BY REGION SERVICES BY SEGMENT

$3.2T4.0% CAGR

$3.2T4.0% CAGR

Asia Pacific

Latin America

North America

Europe

Middle East

CIS Africa

Maintenance, Engineering, &

Upgrades71%

Training & Prof. Svrcs

4%

Information Services

25%


5.2%

5.0%

2.7%

3.0%

4.8%

3.4%

4.9%

4.1%

0% 1% 2% 3% 4% 5% 6%

Asia Pacific

Latin America

North America

Europe

Middle East

CIS

Africa

World

Compound Annual Growth Rate

InformationServices, 6%

Training & PilotServices, 2%

Maintenance & Engineering, 24%

Ground Handling, 56%

CabinServices, 9%

Marketing &Planning, 3%

Sales


2017 Pilot & Technician Outlook

Cabin Crew

Technicians

Pilots

New (Growth) Attrition Replacement

253,000

256,000Single-aisle, 74%

Twin-aisle,23%

Freighters, 2% Regionals, 2%

16,050

Deliveries

Pilots

Technicians

Cabin Crew

308,000


Bringing training closer to our customers around the world


Market Trends

Airlines continue to outsource non-core activities

Flexible maintenance services tailored to meet airline operational requirements

Data analytics turn airplane operating data into diagnostic information to anticipate problems before they arise

Airline efficiencies – like inventory management, optimized maintenance programs, exchange programs – are creating structural changes in the industry

2017-2036

Shop Maintenance

60%

Maintenance Support

20%

LineMaintenance

7%

Hangar Maintenance

13%

Market Demand by Segment

24%Commercial

aviation

services

market share

$785 billionMarket

value

5.2%Annual

market

segment

growth


2017Singapore Airlines 777-300ER

0 stops ~ 13.67 hours

asia market outlookmromarketing.aviationweek.com/downloads/mas2017/...source: 2017 boeing services...

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