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Introduction

April 17, 2017, © Leeham Co.: A shift is underway among Asian airlines that could have ramifications for the airframe and engine manufacturers and, by extension, their suppliers.

It doesn’t appear, however, that aerospace analysts in the US and Europe realize this shift. At least none has written about it that we’ve seen among the research notes we receive.

Summary

• The creation of the Value Alliance of Low Cost Carriers brings together eight LCCs under one alliance.
• AirAsia faces a competitive threat.
• Full service carriers also face a threat, particularly those in Japan, concludes one aerospace analyst team in the region.
• Airbus, Boeing have a backlog of more than 1,000 airplanes with the VALCC group and hundreds more with other airlines.