Northeast Asia opportunity in plain sight for Airbus, Boeing

Airbus and Boeing, the world's two largest jet makers, cited Northeast Asia including Korea, as a main target market, outlining their commitment to the region's rapidly growing aerospace and defense sector.

Loic Porcheron, Airbus chief representative for Korea, speaks during a press conference held at Lotte Hotel in central Seoul on Monday. [AIRBUS]

Airbus and Boeing, the world's two largest jet makers, cited Northeast Asia including Korea, as a main target market, outlining their commitment to the region's rapidly growing aerospace and defense sectors.

In line with the direction, Airbus will set up its research and development (R&D) center in Korea to strengthen its footing in the country.

The announcements came on the eve of the launch of Korea's largest-ever aerospace and defense exhibition, ADEX 2023.

"Airbus' goal is to become a partner of choice for Korea for the development of local solutions in the helicopters, defense and space sectors, as well as in the supply chain," said Loic Porcheron, Airbus chief representative for Korea, adding, “Celebrating our 50th year of presence in Korea next year, we are looking to expand our industrial footprint in Korea."

Having initiated its association with Korea in 1974 when Korean Air Lines placed its first aircraft order, Airbus has provided the nation with nearly 150 commercial aircraft, 60 civilian and military helicopters and 30 military transport aircraft.

"Virtually every major Airbus aircraft model, such as the A330, A350, A380, incorporates essential components produced within the country," Porcheron said, underscoring both Airbus' enduring presence and Korea's significant contributions.

The company is also committed to broadening collaborations in areas like helicopters and satellite projects.

Currently, Airbus partners with the Korea Aerospace Industries (KAI) on several helicopter programs, codeveloping the Korean Utility Helicopter (KUH Surion), the Light Armed Helicopter, as well as new KUH variants such as the Marine Attack Helicopter and Mine Countermeasure Helicopter. Beyond the skies, Airbus and the Korean Aerospace and Research Institute (KARI) developed Korea's first multi-function geostationary satellite (GEO-Kompsat) and its first geo-stationary ocean imager.

The company is in discussions regarding the establishment of an R&D center in Korea.

"We are currently in the conceptualization phase while working closely with major aerospace industrial companies in Korea," the chief representative for Korea said, adding, "it is to support Korea in advancing its aerospace technological competitiveness and ensuring a robust talent pipeline to support the industry's continued growth."

Airbus also intends to bolster its presence in the Asia-Pacific (APAC) region, anticipating that "27 percent of global commercial aircraft demand will originate from APAC." They have plans to deliver more than 60 additional aircraft to Korea in the near future to meet the surging demand, although Airbus emphasizes that such volume is still insufficient to cater to the anticipated demand in the region.

Dave Schulte, Boeing Commercial Marketing managing director for Asia Pacific, speaks during a press conference held at Conrad Seoul hotel in western Seoul on Monday. [BOEING]

Arlington, Virginia-based Boeing presented a rosy outlook for the growth of the commercial aviation market in Northeast Asia, during a press conference held in Yeouido, western Seoul, also on Monday.

Boeing said it expects 5.9 percent annual passenger traffic growth in the Northeast Asian region encompassing Korea and Japan — outperforming the region's annual economic growth rate of 1.2 percent over the next two decades. Boeing also suggests that the largest traffic flow from Northeast Asia in 2042 will be directed toward Southeast Asia.

These projections imply that the Northeast Asia market is expected take delivery of 1,350 new airplanes by 2042, accompanied by the demand for 90,000 new aviation professionals.

"We anticipate continued strong twin-aisle demand to serve both short-haul and long-haul routes," said Dave Schulte, Boeing Commercial Marketing managing director for Asia Pacific. "Growing single-aisle deliveries will support an expected expansion of low-cost carriers in the region."

Given these conditions, Boeing is confident that its B737 Max and B787 series will maintain their competitiveness.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]