The Aviation Boom in Asia
The Aviation business in Asia is booming. A few months ago, Indian carrier IndiGo made a record order for 500 Airbus A320 aircraft – the second-largest single purchase agreement by any airline in commercial aviation history. Last year, Air India made a record-breaking deal with Boeing and Airbus, buying 540 planes from them to grow its business in India and abroad. The order of short- and long-haul planes is worth about $82 billion at the list price, but such large orders usually get discounts and incentives.
However, now the Philippines also seems to be following suit. Last month, the Chief Operating Officer (COO) of Philippine Airlines, Stanley Ng, was reported saying that the airline is considering a large order for new aircraft—around 100 new aircraft amid rising demand for air travel in the region. Stanley elucidated that the company had been planning to conduct a feasibility study on a potential new order in 2023, which was delayed. The renewed interest in placing a new purchase order stems from the resumed construction of new airports in the country and an anticipated boom in tourism.
Philippine Airlines is not alone. The low-cost carrier Cebu Pacific placed an order for 152 A321neos last month. Michael Szucs, CEO of Cebu Pacific, was reported saying, “The order is designed to give Cebu Pacific the flexibility to choose between the A321neo and A320neo aircraft as needed, helping us adapt to market changes.” This yearly special issue of CEO Insights Asia sheds light on some of the stellar COOs in the Philippines.