(Bloomberg) — Delayed aircraft deliveries, the uphill battle to go green by 2050, and rising airfares as flying becomes the province of the wealthy – this week more than 1,000 companies All these topics and more will be the focus of the executive’s visit to Singapore. Asia’s most influential aerospace and defense exhibition.
The 16-country pavilion, which will include China and South Korea for the first time, includes prominent exhibitors such as Airbus SE, Honeywell International, GE Aerospace, and military giants Lockheed Martin and Northrop Grumman.
Boeing Co., the world’s other major aircraft maker, plans to own real estate and some senior management in the show, most notably after the Alaska Airlines midair panel explosion in January. However, the company does not have a single aircraft on display. Quality control is once again in the spotlight.
Read more: Boeing expects to ramp up production of 737 planes in stages as it grapples with factory deficiencies
Another entity that is sure to attract attention is Commercial Aircraft Corporation of China (COMAC). China’s domestic airplane manufacturer unveiled its single-aisle jet C919 for the first time internationally at the Singapore Air Show.
Main developments
- Airlines lose out in Bangkok and Florida over reduced flight routes
- Airline chiefs plead for more green fuel to save on air travel
- Singapore plans sustainable fuel tax to boost airfares
(All Singapore)
Military Budget and Supply Chain (9:15 am)
Eric Fanning, CEO of the Aerospace Industries Association, said on the sidelines of the Singapore Air Show that from a military perspective, one of the key focuses for the United States is ensuring that conflicts around the world are adequately resourced. He said that the goal is to obtain the necessary expenditures to invest.
“We are still operating under the 2023 budget and the 2024 budget has not been passed, so we are not getting the spending increases that we will see in 2023-2024. There’s been a lot of movement to put more emphasis on this budget in “regions of the world,” Fanning said.
Fanning, who was the 22nd Secretary of the Army, also said the supply chain is still being repaired after the pandemic.
“It took us years to get to where we are today, a very lean supply chain that kept prices very low, but there was a lack of recognition that capacity was a military capability in itself. ” Fanning said. “Then COVID-19 hit and it put a huge strain on the supply chain. A lot of things are being done to get out of that. But it took years to get here and It’s going to take a while to get out of it.”
The Aerospace Industries Association is an aerospace and defense industry advocacy organization with more than 320 member companies.
Consumers bear the cost of net zero (8:10am)
Singapore’s plan to levy airfares to pay for the production of sustainable aviation fuel has been welcomed by Willie Walsh, director general of the International Air Transport Association.
“We need to be honest with the public and make clear that the costs of transitioning to net zero are high and will ultimately be borne by consumers through ticket prices,” Walsh said in an interview on Bloomberg TV. I think it’s important.”
Mr Walsh said that although he is not normally in favor of taxes or levies, “the positive side of this is that the levy will go towards the production and supply of sustainable aviation fuel.”
He said it would be “very exciting” to see China’s Comac C919 displayed at air shows, but “it will take some time to establish itself as a credible global player.” .
Read more: Will Boeing’s woes help crush China’s Commack jet duopoly?: QuickTake
Time to move forward from Covid (7:40am)
Subhash Menon, executive director of the Asia Pacific Airlines Association, said it was time to move on from the pandemic and focus on the future.
“Travel and tourism in the Asia-Pacific region has already resumed normal services. Passenger seating coefficients are already as high as they were pre-coronavirus,” Menon said in an interview at the air show. “It’s time to start 2019 in earnest.”
Mr Menon also welcomed the Singapore government’s plans to introduce a tax on airfares to pay for sustainable aviation fuel, a move that will help to determine how much the transition to greener travel will cost. He said there would be clarity for airlines and consumers.
“Airlines are using every drop of SAF available,” he said. If the scarcity issue is resolved, the cost of SAF could come down and travelers wouldn’t have to pay as much to make the transition, he said.
–With assistance from Avril Hon, Ocean Hou, and Yihui Xie.
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