The Boeing Company (BA - Free Report) 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 operations scheduling.
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. (LMT - Free Report) , Huntington Ingalls Industries, Inc. (HII - Free Report) and Northrop Grumman Corp. (NOC - Free Report) .