Demand for LCC services could drive the local aviation market, says Boeing

Increasing demand for no-frills air services in Taiwan, among other Northeast Asian countries, could become a major driver of growth in the region's aviation market, a Boeing executive said Friday.

Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes, said market performance of the company's single-aisle aircraft — the majority of its airplane deliveries over the next 20 years — could benefit from such a trend.

The aircraft comprises one of the U.S. aviation giant's most famous series, the Boeing 737 family, Tinseth said.

The market perspectives also look promising, he went on, adding that even though Northeast Asia was initially slow to adopt the low-cost carrier (LCC) model, the segment could play an increasingly significant role in the future.

"Liberation of the market with open sky policies and the anticipation of increased cross-Taiwan Strait traffic means there is lots of potential in the Taiwanese market," he said at a market outlook briefing in Taipei.

In addition, Boeing forecast that the Northeast Asia region will need 1,450 new commercial airplanes, valued at over US$310 billion, between 2015 and 2034.

During that period, air traffic in the region is expected to grow at an annual rate of 2.6 percent, Tinseth said.