Boeing hopes to rebound with new focus on Vietnam

Boeing has set its sights on Vietnam, one of the most dynamically growing aviation markets

Newswire SCMP cited that US-based aircraft manufacturer Boeing is eyeing the Vietnamese market because of its fast-growing middle-class as well as high demand for travel. The plan was made after Boeing's poor performance at the Singapore Airshow.

“It’s been a robust market which is growing at very fast rates. There are great opportunities and a lot of activity around low-cost carriers there,” said Randy Tinseth, vice chairman of marketing at Boeing Commercial Airplanes. “As you can also see, we are starting to see more and more interest in long-haul flying.”

Its first step in materialising the plan was providing the latest aircraft model Boeing 777X to local airline Bamboo Airways. According to the company, Vietnam recorded a growth rate of 15 per cent in seat capacity over the past decade, while the rate was less than 10 per cent in Indonesia.

Moreover, Boeing also intends to target Southeast Asia and emphasised Vietnam, Indonesia, and Thailand as the three fastest-growing aviation markets in the world. The aeroplane manufacturer forecasted Southeast Asia’s tourism by airways to grow by 7.1 per cent in the next two decades, while the European market’s growth will be 2.8 per cent.

The spike in the number of low-cost airlines in the area is one of the reasons bringing Southeast Asia on the radar of plane makers. Tinseth also said that the regional airlines will need 4,500 aeroplanes worth $710 billion in the next two decades.

However, Boeing has been starved of orders since early last year due to the Boeing 737 Max crisis. According to Reuters, Boeing has received no orders in January 2020.

Regarding the hardships, Tinseth revealed that Boeing has been working with more than 40 regulators around the world.

“We expect that the Boeing 737 Max would return to service in the middle of this year. But between now and then, we have a lot of work to do with the authorities,” Tinseth said, adding he wished to get 400 planes back in service.