An order from Cebu Pacific for turboprop aircraft is a main driver of growth in the next five years for the aircraft propeller systems market, which is nearing $1 billion yearly, according to Technavio.
The market research firm said in a report that demand in Asia Pacific, particularly from the Philippine low-cost carrier, was an industry trend that would significantly impact the market through 2020.
Technavio said manufacturers were aiming their new products for launch in Asia-Pacific markets, which showed potential for turboprop aircraft.
The company said France-based manufacturer ATR recently launched two new versions of its ATR 72-600 in this region, with delivery scheduled for Cebu Pacific in the Philippines and Air Niugini in Papua New Guinea.
“As a result of rising fuel prices, turboprop engine and aircraft manufacturers are currently in a favorable situation to develop and expand the market for turboprop aircraft and engines,” Technavio lead industry analysts Abhya Singh said in a statement.
Citing GE Aviation, Singh said the American engine manufacturer had projected yearly sales to exceed $1 billion by 2020.
“GE Aviation has plans to invest $1 billion in this project in the near future, (of which) $400 million will be spent to set up a new factory in Europe,” Singh added.
Cebu Pacific announced in June 2015 it had placed an order for 16 units of the ATR 72-600, becoming the first customer for ATR’s newly launched aircraft.
For this order, valued at $673 million and which provides the airline options for 10 additional units, Cebu Pacific expects delivery between this year and 2021.
According to Cebu Pacific, the transaction will see its turboprop fleet to double in size, “subject to the execution of final purchase documentation.”