Milling Crowds around F-22 Raptor at Singapore Airshow

Airbus bagged an order for six A350-900 worth $1.8 billion from Philippines Airlines

Boeing got orders worth $1.3 billion for Boeing 737s from China’s Okay Airways and Papua New Guinea’s Air Niugini

Singapore-based Aviation PLC ordered five ATR 72-600 valued at $130 million from ATR

Embraer Signs Pool Agreement with Colorful Guizhou Airlines providing a comprehensive components repair package for its E190 fleet

In this part of the subcontinent, we distinctly remember the 2014 Singapore Airshow. It was then India’s new regional airline Air Costa signed a definitive agreement with Brazilian airframer Embraer for a firm order of 50 E-Jets E2s with an additional 50 purchase rights. The deal was estimated to be $2.94 billion based on 2014 list prices. The deliveries start in 2018. But this edition of Singapore Airshow did not have much to cheer about, in terms of orders. Yes, we all know that mega orders are the norm only in Le Bourget, Farnborough and Dubai. The 2016 Singapore Airshow has been a low-key affair. There were no headline-grabbing orders. In fact, the dip in orders became the news. Trade deals reportedly were estimated to be $12.7 billion, compared to the previous edition when it peaked at $32 billion. As per reports, there were only 11 announced deals while almost 40 deals were reportedly made in private, the order worth unknown.

Undisclosed deals

According to the organisers, a total of 50 deals were made at the show, representing an increase of 14 per cent over 2014. These included 10 deals with a total value of $12.7 billion, as well as 40 deals with undisclosed values announced by 20 companies. In line with changing business trends, and as the industry becomes more sophisticated and competitive, a growing proportion of the announcements and deals included undisclosed values. More deals were announced by LCCs and aircraft leasing companies compared to 2014. In addition, eight memorandum of understanding (MoU) signings were made compared to four in 2014 as industry stakeholders look to build future capabilities.

Substantial defence presence

The airshow had a substantial presence of military aircraft and technologies and many of the deals and MoUs signed were not disclosed.

Lockheed Martin had F-22 Raptor stealth fighters on display, a first for the exhibition. The F-22s were from the 525th Fighter Squadron, nicknamed the Bulldogs, which is responsible for missions with the US Pacific Command. Lockheed announced that it was expanding its business in the region and talked about its immediate programmes in Australia and New Zealand, mainly related to maritime requirements.

Northrop Grumman Corporation showcased its broad range of global security capabilities. “The Asia-Pacific region is extremely important to Northrop Grumman, particularly as we broaden our global focus,” said Brian Kim, Chief Executive, Northrop Grumman Korea. “We will continue working closely with our partners in the region by providing the most advanced long-term solutions to help meet their defence and security needs.”

Northrop Grumman supports numerous defence and civil programmes throughout the Asia-Pacific region and has offices in Singapore, Taipei and New Delhi, as well as corporate offices in Canberra, Seoul and Tokyo.

Strong Israeli presence

At the Israel National pavilion, SIBAT which promotes Israeli defence companies, presented cutting-edge technologies. “Israel considers Asia as a significant market and views expanded cooperation in the region as very important. Israeli defence companies have a proven ability to deliver technological solutions for the protection of national and maritime resources, according to the needs of the Asian countries.”

ST Engineering presents strong know-how

ST Engineering, Asia’s leading defence and engineering group, showcased its technology know-how, proven solutions and battle-tested products. ST Engineering will be exhibiting over 100 products, services and solutions—new and proven—organised into three clusters at its 2,000 sqm space: Aviation, Smart Combat and Smart City.

Airbus bags big order

Airbus had the biggest order when Philippines Airlines signed for six A350-900 worth $1.8 billion.The Toulouse-based manufacturer also said an undisclosed customer had ordered 14 A330-900neo, bringing the total to 186 aircraft for the new reengined A330 programme. Boeing had orders worth $1.3 billion when China’s Okay Airways signed up for a dozen Boeing 737s, besides the order of Papua New Guinea’s Air Niugini picking up four 737s for $440 million. In the regional segment, Japan’s Mitsubishi won a $940 million order for 20 (including 10 options) MRJs from US leasing company Aerolease, which becomes the first company to evince interest in the MRJ programme. For ATR, the exclusive turboprop manufacturer, Singapore-based Aviation PLC ordered five ATR 72-600 valued at $130 million.

Though there are murmurs that there would be a downturn in the aerospace sector, industry experts have dismissed it by giving figures of growing aircraft numbers. First, John Leahy, the Chief Operating Officer of Airbus, said: “Some people are saying we’re in the middle of a bubble. But reality is, the only thing that worries me is to not be able to deliver the aircraft our customers have ordered.” Similarly, Embraer’s Chief Commercial Officer John Slattery dismissed it by saying that demand for new regional jets in the Asia-Pacific region would go up to 6,350 units by 2020.

Increase in trade visitors

Singapore Airshow 2016 saw close to 10 per cent increase in trade visitors, as well as a nearly 5 per cent increase in the number of VIP delegations. There was also an increase in the number of local companies exhibiting in the Singapore pavilion, with 36 companies taking part this year, compared to 29 companies in 2014.

The wide array of opportunities at the Airshow spanned the commercial, defence, MRO, R&D and even manufacturing sectors. These opportunities not only emerged within industry sectors, but also from Asian countries and markets that displayed significant potential and were key focal areas for exhibitors and visitors. Industry heavyweights like GE Aviation announced new investments in new MRO facilities in Singapore, which includes establishing a new advanced technologies centre for R&D on repair applications, while Pratt & Whitney opened its first Singapore manufacturing facility coinciding with the show, the only facility outside of the US to manufacture components for the company’s latest engine, the PurePower engine.

Among the growing spectrum of MRO opportunities is the agreement signed by Airbus and SIA Engineering Company (SIAEC) to form a joint venture based in Singapore. The joint venture company will provide airframe maintenance, cabin upgrade and modification services for Airbus A380, A350 and A330 aircraft to airlines in the Asia-Pacific and beyond, and marks SIAEC’s first collaboration with a major aircraft manufacturer for airframe maintenance.

Singapore Airlines also appointed key suppliers for its fleet of Airbus A350 aircraft including Thales to provide the in-flight entertainment system and Ka-band connectivity, and 12-year deals with Moog for maintenance and inventory support of the OEM’s flight control products, and with UTC Aerospace Systems to supply asset management and repair services for the A350s.

French Connection

France had a huge pavilion. About 60 companies comprising prime contractors, equipment manufacturers, small to medium enterprises, and maintenance specialists were aggressive in their presence. “This edition of the Singapore Airshow has been an excellent success for all the members of GIFAS (the French aerospace industries association), and more particularly for our SMEs. The status of Feature Country has clearly given a deeper dimension to the relationship between our two industries which we are looking forward to grow further.” said Vincent Gorry, Director, European and International Affairs, GIFAS.

Emerging Dialogues

The show offered a unique platform for thought leadership through its high-level conferences, forums, and co-located events, helping to shape the future agenda of the industry. The Singapore Airshow Aviation Leadership Summit (SAALS) 2016 brought together some 300 key stakeholders in aviation, including top government representatives, civil aviation authorities and senior executives of airlines, airline operators, aircraft manufacturers as well as the heads of the International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA) to exchange valuable insights, network and strengthen the nexus between governments and the aviation industry.

Emerging Technologies

The new Aerospace Emerging Technologies Zone and Emerging Technologies Business Forum were introduced at Singapore Airshow 2016, focusing on some of the key trends in aviation such as augmented reality and unmanned airborne vehicles (UAVs). The CAAS also made significant announcements that focused on emerging technologies in the aviation space. CAAS signed an agreement with the Institute for Infocomm Research (I2R) to establish a joint laboratory to advance air traffic management (ATM) research and development (R&D), as well as MoU with Airbus Helicopters to conduct unmanned aircraft systems (UAS) proof-of-concept trials, named the Skyways Project, in Singapore.

Looking to the Future

About 70 per cent of exhibitors have already made reservations to participate at the next Singapore Airshow, with GMF from Indonesia, UAC from Russia and Saab from Sweden among the exhibitors looking to increase their presence at Singapore Airshow 2018 which will be held from February 6 to 11.

“We are heartened by the continued support and show of confidence from exhibitors and visitors for the Singapore Airshow as the global platform to tap into emerging opportunities, engage in emerging dialogues, and showcase emerging technologies in the fast growing Asia-Pacific market,” said Leck Chet Lam, Managing Director of Experia Events. “We are committed to creating carefully curated programme elements and are looking forward to delivering a 2018 edition that will further contribute to growing industry capabilities.”

Leck Chet Lam further said: “We are pleased that the fifth edition of the Singapore Airshow has received such strong support from both trade and public visitors alike. We are constantly looking for ways to innovate and improve the curation of programmes and activities to provide a meaningful experience for all participants.”