A $260 billion order confirmed: Boeing says EVA Air wants to buy 24 787-10 jets

▲Boeing confirms EVA Air’s intention to purchase 24 Boeing 787-10 jets. (Photo/From Boeing’s Weibo)

Reported by Chen Ruizhong / Taipei

In light of passenger demand and fuel price cuts,Randy • Tinseth (Randy J. Tinseth), vice president of marketing for Boeing Commercial Airplanes, said during a market outlook event in Taipei today (October 23) that the Northeast Asia market will see steady growth momentum, with air traffic maintaining a 2.6% growth rate over the next 20 years. Tinseth also confirmed that EVA Air is interested in purchasing 24 new 787-10 jets, but negotiations are still ongoing and it will take a few weeks to confirm the contract.

Analyzing data from the past five years, global economic growth was 2.7%, and the passenger market grew by 6%. Taiwan’s economy grew by 3%, and its passenger market expanded by 5.2%. In the Northeast Asia region, low-cost carriers grew by 21.5% over the past five years, and the market has become more diverse. Airlines have also been renewing their fleets for better fuel efficiency. Tinseth pointed out that although this is already a mature market, many change factors still exist. For example, new aircraft that offer both capacity and efficiency have opened up new routes, driving continued development in Northeast Asia.

Looking ahead to the next 20 years, Tinseth believes the market will continue to recover, with increasing flight frequencies and new non-stop routes to meet growing air transport demand. In 2014, Asian passengers grew by 100 million, and it is estimated that the number of Asian passengers could rise from 3 billion to 7 billion over the next 20 years.

▲Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes. (Photo/By reporter Chen Ruizhong)

According to Boeing statistics, major hub airports in Northeast Asia such as Tokyo, Seoul, and Taipei have opened more than 80 new destinations in the past 10 years. The average seat count per flight has decreased, and market demand in Northeast Asia is shifting toward smaller, more efficient aircraft, with more frequent flights between destinations.

Over the next 20 years, the Northeast Asia region will need 1,450 new aircraft worth a total of $310 billion. As fuel prices are expected to see moderate growth, airlines will prioritize replacing short-haul aircraft with better fuel efficiency. Of the new aircraft demand, two-thirds are for fleet renewal. Among the 1,450 new planes, medium-widebody jets such as the 777 will account for about 28%, while single-aisle aircraft like the 737 and 737 MAX will make up 43%. For the global market, Boeing also estimates that 38,000 aircraft worth a total of $5.6 trillion will be needed over the next 20 years.

The new 787-10 Dreamliner has already received orders and commitments for 146 aircraft from various airlines. Tinseth also stated,that EVA Air has indeed expressed interest in purchasing 24 787-10 Dreamliners, but it will take a few weeks to confirm the contract. Boeing will make a final push to secure the deal, which will be officially announced after signing.The 24 787-10 jets and 2 777-300ER aircraft that EVA Air intends to purchase are estimated to be worth over $8 billion.