Keynote Speech: Avik Bhattacharya | SVIEF
4:05AM Sep 30, 2018
Now we're going to welcome our next speaker from Boeing commercial airplanes. Mr. Avik Bhattacharya and he is the director of international strategy and business development for Boeing commercial airplanes. So let's welcome Avik and, he will give us a short presentation.
Thank you, Kevin,
I want to start off by acknowledging Iris and SVIEF for putting the fantastic event together, I flew down to Seattle this morning. And I'm absolutely confident that every moment that I spent here have been totally worth it thing that I've learned
and the products and innovations that offer something that I can absolutely take back to my company.
I have also received a fast and deliver the keynote speech. And I promise I'll keep it short.
The second role is to present a couple of awards. But let me first get underway with my keynote speech. And I will be talking not so much about my company. Hopefully, all of you that have flown have flown on a Boeing plane. So if you know about us, what I'm going to be talking about the about aerospace and aviation innovation, and China and how three are melting and melding into each other, to provide an ecosystem that we think is absolutely superlative. So let me first start by talking about what we do.
Our mission is to connect people and goods, which is to say that we facilitate trade. And we help people connect. And we say, we help people connect, we help countries and cultures Connect, get to know each other very well. And especially over the last 20 years, as aviation has grown, as more people have started to fly.
As countries have opened up as air traffic and increase to tier two and tier three airports, the connections and the goodwill that this has generated a spillover effect has been just terrific. And this is something that we take as our mission to help people connect and to help and facilitate global trade
every day. Every day, 12 million people fly 12 million is roughly the population of Shenzhen. That's 4 billion flyers in a year, one third of global trade is conducted through aviation and an aircraft. So that is the kind of impact aviation has on the world today.
Next is the
kind of innovations we have seen to happen in the business model of aviation. In the last few years, we have moved away a lot from the typical model of mega hubs to places that connect with each other tier two and tier three cities. If you were to take the example of the West Coast of the United States alone, if you were to leave aside la acts that are airports like San Diego, San Jose, Portland, Seattle, and Vancouver, which offer international connectivity. We did not have any of these happening 20 years back. But today we do. And that is a testament to what aviation has been able to bring about in the last 20 years. And
the centerpiece of the change that has happened in the world of civil aviation is really China
last year alone, 100 million international travelers flew in from from China. Now, given that just about one in 15, Chinese citizen has a passport. That is an incredible number that has already the largest number ever,
China is building infrastructure at a frantic pace. cities like Beijing, Valiant Sherman, and many, many more are getting new airports and upgrading their capacity.
The air traffic that we have seen expand into and from China has been unparalleled. And there has been no such instance before in history. And we hope that this continues.
The impact that this has had on companies that manufacture products for civil aviation has been absolutely immense. Almost 25% of Boeing's entire production is absorbed by China, a third of the Boeing 77, the most popular aircraft that most of us are flown on
goes into China.
Since the normalization of trade relationship between the United States and China, Boeing has delivered close to 1800 airplanes to the mainland.
And we expect that over the next 20 years, China will acquire more than 7000 aircraft with a combined aggregate value of trillion dollars, which is more than the GDP of more countries in the world. And it's also more than the collective value of most industrial sectors in the world as we know it,
so that the scope of opportunity that exists in that country now with that kind of opportunity, obviously, there is competition. And this competition is of
three try. The first is the typical traditional competition between Boeing and Airbus. And our competitor is very competitive in launching products and services. But we have a suite of emerging competitors in places like Brazil, Canada, and China. It's not to include Russia and Japan, but but countries across the world are now investing significant resources in generating and building a civil aviation industry. And the third one, which is where we see maximum connect with the Silicon Valley, and ecosystems such as this are the companies that are able to bring in new business models or disruptive technologies change the way business is currently done, the Uber, the Amazons, the hyper loops of the world will offer very compelling transportation options in the near future. And it is incumbent on companies like us to collaborate and partner with participants at venues like this to be able to be ready for the future,
our future focus areas at such that we are able to develop solutions for large parts of the world which are yet to fly large parts of Asia, Africa, Latin America, are yet to experience the joy of flight. And one of our missions is to make sure how do you make a lot of this population fly? And then the next mission is to make sure that the people who have experienced flight How do you make it more joyful and
less of a stress for them. And while doing all this, how do we ensure that flying in aviation as an activity remains sustainable and environmentally friendly and can carry on for the long term. So this is what our mission is. And it is in this mission, that we look to collaborate with the ecosystem in places like the Silicon Valley in places like China in Shenzhen, Shanghai, and Beijing to be able to offer solutions and services that
we are able to launch in the future around autonomy around artificial intelligence and advanced concepts. So this is the intent that we have that when we collaborate and participate in forums like the svief
how do we bring in technology that people want and how do we bring in technology that tracks to the future and makes flying a safe, efficient experience for all of us. With that, I'll stop