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Singapore airshow kicks off amid supply-chain strains and regional demand surge

Singapore hosted Asia's largest aviation conference on Tuesday, as the industry aims to achieve ambitious regional growth goals despite widespread supply shortages which have delayed many aircraft delivery.

The 10th edition?Singapore Airshow? will feature more than 1,000 companies, including industry giants Airbus and Boeing as well as local champion ST Engineering. There is also a new generation of drone-focused defence firms such Asuril Industries and Shield AI.

Singapore announced on Monday that it will launch its own space agency at the accompanying space summit.

China and India are driving the Asia-Pacific region's rapid growth in air travel. By 2026, passenger traffic is expected to grow by 7.3%. However, plane manufacturers and engine makers are struggling with demand for fleet extensions.

As the aviation market grows, there's a mismatch between demand and supply, said Jeffrey Lam. He's president of ST Engineering Commercial Aerospace, the largest provider of airframe maintenance services in the world.

"I think the mood (at this show) reflects that there are a lot expectations and a lot anticipation about how the industry will continue to recover in order to meet the market demand, either from the airlines or the?flight passenger."

Boeing has announced a deal for Air Cambodia to purchase 10 of its 737 MAX aircraft. Meanwhile, Chinese planemaker COMAC, with its C919 passenger airliner, is also competing for attention. This year, the C919 is making its return at?the show after dominating headlines in 2012.

On Tuesday, China's Shanxi Victory General Aviation signed an agreement to purchase six firefighting aircraft.

According to COMAC, the passenger version of C909 is gaining some traction in Southeast Asia. Indonesia's TransNusa and VietJet Aviation, Lao Airlines, and TransNusa have all operated the model over 20 routes, carrying more than 700,000.

Key Meeting Point

According to Jefferies analysts' calculations, the Singapore Airshow only accounted for 5% of all global airshow orders from 2012 onwards, far behind Paris Farnborough, and Dubai which are held in later months.

It is a meeting place for regional airline executives, their counterparts from plane makers, and engine manufacturers, as they try to meet the growing demand for air travel, especially in Asia-Pacific, where 35% of all global air traffic occurs.

Alton Aviation Consultancy released a report on the eve before the show that predicted India, China, and Southeast Asia to be eight of the top ten fastest growing air travel markets in the world between 2024-2044.

Singapore Airlines, the home carrier, announced Monday that it will launch four flights per week to Riyadh starting in June.

DÉFENSE OFFERINGS

The Israeli defence ministry and 11 Israeli companies were invited to exhibit at the air show in Dubai and Paris after being ignored by the organisers last year because of the war in Gaza.

China's AVIC displayed a large-scale model of its J-35A fighter jet as it seeks international sales for the fighter it has been marketing.

Boeing announced that it would no longer build F-15 fighter planes for Indonesia. This ended what had been a?major deal for Jakarta's militaristic expansion.

On Tuesday, large groups of Southeast Asian officials took a keen interest to the defence offerings at the show.

Vietnam's delegation visited Airbus to see its displays of military helicopters, including the A400M transport aircraft. Thai military officers then headed over to Embraer for a static display. Singapore's defence ministry officials visited Israel Aerospace Industries.

The lunchtime flying show featured performances by air force captains from Singapore and Indonesia. It also included pilots from India, China, Malaysia, and Australia. Reporting by Julie Zhu; writing by Jamie Freed and Joe Brock. Editing by Raju Gopikrishnan.

(source: Reuters)