5th Singapore Airshow begins after EU-ASEAN open skies discussions

At a time when low oil prices and uncertainty surrounding the Chinese economy are likely to heavily and negatively influence the potential major aircraft orders, the 5th biennial Singapore Airshow, which this year runs from the 16th – 21st of February, got off to a promising start with regard to the EU – ASEAN (Association of Southeast Asian Nations) open skies agreement. On the Sunday before the event opened, the European Commissioner for Transport, Violeta Bulc, met with key ASEAN transport officials, including Singapore's Transport Minister Khaw Boon Wan.
According to Ms Bulc, the discussion with ASEAN transport officials was constructive and encouraging, though she admitted there were challenges, differing viewpoints and diversity among the 28-member European Union as well. “We have similar differences in Europe and lots of diversity, for example in development infrastructure and investment capacity, but little by little, we are finding common ground and moving forward.
“I am not going to tell you a fairy tale. It's going to be a big challenge. It's going to be lots of work, but the good thing is that you have fewer countries than we do.”
Over the last few years the volume of traffic between the EU and ASEAN countries has grown by approximately 5% year on year, but the number of flights has remained relatively static. The push for EU-ASEAN liberalisation is centered on the fact that while air traffic between Asia and Europe is increasing, Middle Eastern carriers would appear to be cashing in to a far greater extent than EU and ASEAN airlines.
The inaugural biennial Singapore Airshow (then called the Changi International Airshow) took place between the 19th and 24th February 2008 and was launched as a partnership between the Civil Aviation Authority of Singapore and the Defence Science and Technology Agency subsequent to the relocation of Asian Aerospace from Singapore. The intention is to bring together the global aerospace community and key commercial, government and military delegations at Asia's largest aerospace and defence event.The show takes place at the Changi Exhibition Centre, located due east of Changi International airport, which covers an area of 40,000m2 and includes a further 100,000m2 of external exhibition space plus parking facilities for 20,000 vehicles.
It is understood that there were no major orders for aircraft placed on the first day of this event and analysts do not see this situation changing. Bertrand Grabowski, DVB Bank's global head of aviation, saw low oil prices as a barrier to airlines keen to order new aircraft. However, there was still an air of optimism as strong balance sheets could prove to be an incentive for airlines to choose this as an opportunity to place orders.