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Aviation market in Southeast Asia

The Asian region is forecast as the fastest growing aviation market over the next twenty years. By 2025 Asian airports are expected to handle more than three times the volume of movements handled in 2005, with growth averaging 6 percent per annum.

The growth of aviation in the Southeast Asia region has resulted in a wide range of current or planned investments in all sectors of the industry by governments, airlines and other aviation companies.

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  • Philippines: The Philippines aviation industry is growing along with an expanding tourism industry. Tourist arrivals in 2008 increased by 1.5 percent from the previous year and recorded passenger movement of 36 million. The government has been supporting growth of the industry by opening up airspace and improving infrastructure.
  • Singapore: Singapore is the regional leader for maintenance, repair and overhaul services (MRO) with an average growth rate of 13  percent in the aerospace industry since 1992. Singapore has the sixth busiest airport and the fourth busiest air cargo hub in Asia, and is also predicted to become an important training hub for aviation. It is well known for its design and manufacturing ability in particular within engine casting, gears, valves, and electronic power systems.
  • Vietnam: While Vietnam’s aviation industry is still relatively small, it has grown significantly in recent years. Travel and tourism are important industries – in 2008 Viet Nam was named the fourth fastest growing tourist destination in the world.Total passenger numbers reached 9.3 million in 2009, a 6.6 percent increase from 2008. The government is planning to increase passenger capacity to 32.5 million by 2015 and 63 million by 2020.
  • Indonesia: Indonesia’s aviation sector, comprising mainly of airports and airlines, has grown over the years. During 2006-2008 passenger traffic and freight tonnage expanded by 6 percent and 10 percent respectively. This increase in passenger traffic was driven by growth in tourist arrivals. Recently the government has initiated efforts to revamp the system.

Getting your product into market

  • Philippines: New Zealand companies should target potential partners and agents and a good way to do this is through participation in relevant conferences, exhibitions and trade shows, or through referrals from other international players participating in the Philippines aviation market.  A good, well-networked partner or agent will help navigate this technical and tricky market and having a well established business partner or agent can help improve your credibility in the market.
  • Singapore: New Zealand companies that are seeking partners should participate in relevant conferences and trade shows to network and raise their international profile. Singapore is very status-driven, and the name of current partners/clients will help New Zealand companies gain acclamation.  Therefore, current partners, clients, and case studies should be well documented for perusal by potential Singaporean partners/clients. Establishing a presence in the market is extremely advantageous in gaining trust and support from the local partners/clients, obtaining contacts, and attracting venture capital funding.
  • Vietnam: In order to enter the market, equipment suppliers and service providers are advised to register their interest and capabilities with appropriate agencies such as the CAAV and VNA. Both organisations are open to negotiations with any capable vendor. In some sub-sectors New Zealand is already known to Viet Nam as a reliable supplier of skills and expertise. New Zealand companies should take advantage of this to further improve relations.
  • Indonesia: New Zealand companies are advised to visit the market in order to develop relationships. New Zealand companies that are interested to supply equipment that is airport related through government tenders, they must appoint a local partner in Indonesia. A good, well-networked partner or agent will assist the complex procedures and bureaucracies.

Regulations

New Zealand has a free trade agreement (FTA) with the ASEAN countries. To look up the current and phased tariffs for New Zealand products under the agreement use the tariff finder on www.asean.fta.govt.nz

The Philippines, Singapore, Vietnam and Indonesia are all member countries of the United Nation’s International Civil Aviation Organisation (ICAO). The ICAO undertakes regular auditing of each country’s Civil Aviation Authority. The United States Federal Aviation Administration (FAA) established the International Aviation Safety Assessment (IASA) program in 1992.

This focuses on a country's ability to adhere to international standards and recommended practices for aircraft operations and maintenance established by the ICAO.

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