Siva Govindasamy: July 2010 Archives

The Boeing 787 made its international debut at the Farnborough Airshow this morning, and it was a pretty exciting moment for the aviation industry.

This is an aircraft that promises a lot - lower operating costs, higher revenues by being able to carry more passengers, and allowing airlines to connect to various points around their network far more easily.

It will be especially true for Asian airlines like All Nippon Airways (ANA), Singapore Airlines (SIA), Air India and Jetstar, which will depend on the airline to be their workhorse for the next two decades or so. There will be another milestone when the first aircraft is delivered to launch customer ANA.

Yes, there are still some teething problems with the programme itself. But make no mistake - this aircraft has set a new benchmark and will be around for some more time to come.

The bad news continues for the Korea Aerospace Industries T-50, which appears to have lost out in the Singapore advanced jet trainer competition.

The aircraft, which was jointly developed with Lockheed Martin, was a serious contender. But it ultimately failed against the Aermacchi M346, which has also been successful in the United Arab Emirates.

Clearly KAI and Lockheed, which is helping to market the aircraft globally, need to rethink their strategy. From what we understand, they have not successfully convinced governments about the T-50's advantages and there remains a lingering worry about both the purchasing and life-cycle costs.

Aermacchi has also been savvier in the way it has been marketing the aircraft to Singapore and globally - the KAI/Lockheed team has just been too cautious, at times.

It is still not too late for them - the biggest prize, the US Air Force AJT requirement, is still there to be won. Singapore's decision, however, clearly shows that they need to go back to the drawing board.