Airbus, Boeing paint rosy outlook for Indonesian market growth

Airbus and Boeing see strong long-term potential for the Indonesian airliner market, with both forecasting vast demand for jets in the coming two decades. During media briefings at the inaugural Bali air show on 19 September, the two airframers described favourable demographic trends and the importance of air connectivity in a nation formed by thousands of islands spread across a vast expanse of Southeast Asia. Anand Stanley, president Airbus Asia-Pacific, said that Indonesia is a major priority for Airbus, noting that 250 Airbus jets are in service in the country with eight airlines, with 215 on order. Stanley observed that Indonesia’s gross domestic product is growing by over 4% annually, which will see GDP rise to over $3t by 2043. During this period, annual trips per capita will go from 0.4 to 1.4, which means that demand for new aircraft from major airframers during will come to “at least” 1,000 units in the coming 20 years. Stanley made a strong push for the smallest jet in the Airbus family, the A220. “The A220 is the perfect candidate to connect all the islands in Indonesia,” says Stanley. While the market is now dominated by larger narrowbodies such as the A320 and 737 families, he feels that the A220’s ability to operate from shorter runways will allow it to serve locations that have hitherto been served by turboprops. Moreover, the A220’s 7h endurance would allow it to operate from western points in Sumatra directly to eastern points in Papua, Indonesia’s province on the island of New Guinea.<br/>