Singapore - Senior industry leaders speaking at the Aviation CEO Forum, organised on the opening day of the Singapore Airshow by FlightGlobal with partners Experia Events and CFM International, believe that recovery is on the horizon – but that potential headwinds mean the sector is not fully out of the woods yet.
The Singapore Airshow 2022, which kicked off on 15 February and runs till 18 February, with an expected 13,000 attendees, signaled at the aerospace and defence industry’s resilience. Aside from the attendees, almost 600 participating companies from more than 39 countries also participated, representing more than 70% of the top 20 global aerospace companies.
This year's show was the largest event of any kind in Singapore since the start of the pandemic. Though the turnout is low, there is optimism about a reopening in Asia, with host country Singapore on Wednesday announcing an opening to quarantine travel from more countries after an initial pause when the Omicron variant emerged late last year.
With passenger travel down during the pandemic, Asian airlines have relied on the cargo market for survival, and freight was the star of the show in terms of major deals.
AirAsia Aviation Group on Wednesday signed a deal to lease at least 100 flying taxis to, which aims to launch an air ridesharing business in Southeast Asia.
Airbus SE said on Wednesday it has finalised a deal to sell seven A350 freighters to Singapore Airlines , in a deal that would make it the first airline to operate the new model. Etihad Airways placed a provisional order for seven of the same models.
Singapore Technologies Engineering racked up more orders for passenger-to-freighter conversions, a business that has helped keep its hangars and workforce occupied during the slowdown in passenger travel.
On the defence side, manufacturers were hopeful of a rebound as Asian countries emerge from the economic rubble and look for cost-effective ways to upgrade their militaries.
Indonesia however said it would order 42 Dassault Rafale fighter jets in a $8.1 billion deal, which would make Jakarta the biggest French arms client in the region.
As demand begins to bounce back, there are growing concerns about cost inflation and difficulties in the supply chain, for both commercial and defence manufacturers.
Other industry challenges revolve around labour after major workforce cuts made when demand collapsed in 2020, leading led some workers to retire or change industries.
Aerial display participants such as Indian Air Force’s Light Combat Aircraft Tejas and Indonesia’s Jupiter Aerobatic Team, will also showcase dramatic stunts and maneuvers.
-Reuters