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Title : Asia's largest air show lands in Hong Kong
By :
Date : 03 September 2007 0935 hrs (SST)
URL : http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/297590/1/.html

HONG KONG : The world's biggest passenger jet flew through Hong Kong harbour Monday to mark the arrival of Asia's largest air show, as delegates aim to tap into the booming Chinese aviation market.

The double-decker Airbus A380 roared past the city's famous skyscrapers to open the four-day Asian Aerospace International Expo and Congress, now a purely civilian show after years of focusing on military and commercial aircraft.

"The Asia Pacific region is one of the most dynamic areas for growth in the entire aviation industry," said Mike Rusbridge, chairman of Reed Exhibitions, which organised the event.

"It has a strategic part to play to maintain growth and progress."

After 25 years in Singapore, Asian Aerospace is being staged in Hong Kong, with delegates from the mainland's aviation authorities and airlines among some 10,000 visitors expected to check out the latest products on offer.

Hong Kong's Financial Secretary John Tsang highlighted the importance of the Chinese market.

"China has emerged as a major player in the aviation sector. China is set for double-digit growth for the airline sector in the next two decades," he told reporters.

European aircraft maker Airbus said Monday it expects China to order 100 to 150 planes per year from the company over the next five years to satisfy the growth in traffic.

"With the demand that big, that's why we decided to put our own assembly line in China," said Airbus chief operating officer John Leahy.

Earlier this year, Airbus announced it would open a plant in the northern Chinese city of Tianjin, which will eventually make four small to medium range A320 aircraft a month.

However, Leahy also expects China to shift direction, placing the emphasis on larger aircraft.

"With the growth we are expecting in China, congestion is going to start becoming a problem," meaning larger planes would be needed, he said.

But the boom in aviation is not confined to China, according to industry experts, with South Asia also at the forefront.

Jim Eckes, managing director of consulting firm Indoswiss Aviation, said opportunities in the Indian market could be the biggest of all.

"I do not see the growth in China continuing for the next 20 years in the same way, but with India you have mergers and new airports being built that could see the kind of growth that China has seen in recent years," he told AFP.

Although India had just three private airlines in 2003, at least 14 are now seeking government approval and around 480 aircraft are on order for delivery through 2012.

Leahy agreed that India was also an important market and said he thought airlines there would order 1,000 planes in the next 20 years, but noted that he believes the figure in China will be double that.

Airbus and arch US rival Boeing will compete once again to win new orders at the show, with Asia expected to account for a third of aircraft orders over the next 20 years, making it the number two region behind North America.

But China is itself eyeing up part of that market.

China's State Council, or cabinet, has approved plans to build large passenger aircraft aimed at taking on the industry giants, not just at home but worldwide.

Organisers said the show has been scaled down since its move from Singapore, mainly as a result of shedding the military sector but it has added exhibitions focusing on aircraft interiors and the air freight sector.

About 500 exhibiting companies from more than 20 countries are participating in the event.

- AFP/so/ir




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