The Boeing Company
) announced that it will expand its training business in South
Korea and as testimony participated in a ceremony that marked the
construction of the country's largest aviation training facility
in Incheon's Free Economic Zone ("IFEZ").
On completion, the new facility will accommodate 12
full-flight simulators for pilot training programs supporting
Korean Air's flight training needs. Boeing will play a key role
in boosting Korea's aviation industry. The facility is scheduled
to come online in 2015.
Boeing plans to extend its collaboration with Korean Air to
develop cutting-edge aviation training programs from a new base
in Incheon. The company will continue to offer all simulator
training and pilot checking services as well as engage in Korean
Air's program development, quality assurance and training
The Boeing Pilot & Technician Outlook 2013 estimates the
need for 192,300 new commercial airline pilots and 215,300 new
technicians in the Asia Pacific region through 2032. Of this
almost 9.6% of pilot and 11.9% of technician demand will emanate
from Northeast Asia including Korea.
The liberalization of markets and easing of regulations are
rapidly morphing the Asia-Pacific airline industry into
attractive investment destinations. Over the next 20 years,
Boeing predicts the order value to reach a whopping $1.9 trillion
with the Asia-Pacific fleet tripling from 5,090 airplanes in 2012
to 14,750 airplanes in 2032.
The introduction of advanced low-cost carriers has proven to
be a big hit and will continue to rule the market given the rise
in inter-Asia travel. Domestic as well as international travel is
also forecast to rise by 6.5% annually.
The future looks promising for Boeing as the booming airline
market in the region will fetch attractive orders. Currently,
Boeing carries a Zacks Rank #2 (Buy).
Other well-placed operators include Zacks Ranked #2
Lockheed Martin Corp.
Huntington Ingalls Industries, Inc.
Northrop Grumman Corp.
BOEING CO (BA): Free Stock Analysis Report
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