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Boeing says Japan, South Korea plane demand to rise
Bloomberg News
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Published: 10/5/2010 8:10 AM | Updated: 10/5/2010 8:11 AM

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Boeing Co., the world's second- largest planemaker, increased its forecast for aircraft demand among carriers in Japan and South Korea by 2.5 percent on expectations low-cost airlines will buy more planes.

The budget-carrier market share in Japan and South Korea "today is less than 5 percent, and I'm confident it will grow," Randy Tinseth, vice president of marketing at the planemaker, told reporters in Tokyo today. By comparison, low- fare airlines make up about half of capacity in Australia, Tinseth said last month.

Japanese and South Korean carriers' aircraft needs will rise to 1,210 new planes worth $190 billion over the next 20 years, based on the Chicago-based company's 20-year forecast. Boeing had predicted the region would need 1,180 planes in its 20-year forecast last year. All Nippon Airways Co., Japan's largest listed carrier, plans to start a discount airline next year, while Skymark Airlines Inc., the nation's largest budget carrier, plans to double its fleet during the next two years.

A reduction in flights by Japan Airlines Corp., which is undergoing a government-backed turnaround in bankruptcy, is likely to be made up by other carriers, Tinseth said.

"Some flights will be replaced potentially by low-cost carriers," Tinseth said.