Boeing, a major manufacturer of aircraft, said Asia Pacific is the largest market for the company and, despite the global financial turmoil, the aircraft-builder is optimistic about long-term development of the aviation industry in the Asia Pacific region.

"Asia Pacific is the largest market for our new aircraft in terms of numbers and market value. The market, including China, is projected to grow at 7 percent a year," said Randy Tinseth, Boeing commercial airplanes marketing vice president.

"We have two cancellations of orders so far but we are doing better than our competitors Airbus or Skybus," Tinseth said. "We expect to do some financing for some airlines next year, if some airlines have difficulties in business," Kostya Zolotusky, managing director of aircraft financial services, added.

However, Boeing forecasts the Asia Pacific region, especially China, remains at the forefront of aviation industry growth over the next 20 years.

According to Tinseth, the growth translates into a need for more than 9,000 new airplanes worth $1.2 trillion in the region, which is three times the size of fleet in the region at present, and more than one-third of the fleet value of the entire world in 20 years.

When traditional financiers like European banks and the US capital markets are struggling, the Asia Pacific region's financial markets are increasingly being seen as a source for aircraft financing, Tinseth added.

Both Bank of China and Industrial and Commercial Bank of China have been investing in the aviation industry, Zolotusky said. He also expects that banks in China will be the major sources of funds replacing the traditional financiers in seven years' time.

"In China, where we have more than $4.5 billion worth of orders for delivery in 2009, banks in China have been financing customers deliveries and expect to continue to do so. The same happens in Japan, Australia, and elsewhere," Zolotusky said.

(HK Edition 11/07/2008 page2)