Feb. 20 (Bloomberg) -- Stuart Dean, Southeast Asia president of General Electric Co., comments on how the region’s economic growth is supporting a “booming” aviation industry.
The Fairfield, Connecticut-based company will supply engines for 230 Boeing Co. planes ordered last week by Indonesia’s PT Lion Mentari Airlines. Dean spoke on Southeast Asia’s economic growth and infrastructure needs in a Bloomberg TV interview today from Kuala Lumpur.
On engine orders:
“Last year, we closed what was at that point in time the single largest deal in GE aviation history with the 200 A320 plane order by AirAsia in Malaysia. All those 400 engines came with 20-year service agreements. That was followed by a very significant order at Garuda Airlines in Indonesia, and followed this year with the 230 plane order at Lion Air. So that area is really booming.
“There’s still opportunity down the pipe: Singapore Airlines, Thai Airways, Vietnam Airlines. So we’re going to be pretty busy this year as well.”
On regional growth:
“The real story about Asean is how this region has adapted since the financial crisis. It’s not as dependent as it was in the U.S. and Europe. Intra-Asean trade has become more important and intra-Asia trade has become more important. They have developed their domestic consumption throughout Asean as well.
“So that’s the propeller of growth. The next four to five years will see Asean growing in the 5 percent to 6 percent range and that’s very sustainable. A lot of that can be self-financed. Liquidity is strong in Asia and Asean.”
On Southeast Asia’s infrastructure need:
“There’s a lot more opportunity to sell locomotives in Thailand, Malaysia, Indonesia and later on, the Philippines and Vietnam. Everyone is trying to build up their infrastructure here.
“I think everybody has seen what’s happened in the Arab Spring. People want better living conditions. The standards of living must increase, and infrastructure plays a big part of that. So I think many of the countries here still need to build more infrastructure to meet the needs of the population, as well as to accommodate the growth and to encourage still more domestic and foreign investment in their countries.”
--With assistance from Karolina Miziolek in Hong Kong. Editor: Barry Porter
To contact the reporters on this story: Chong Pooi Koon in Kuala Lumpur at firstname.lastname@example.org; John Dawson in London at email@example.com
To contact the editor responsible for this story: Barry Porter in Kuala Lumpur at firstname.lastname@example.org