Boeing, Saab See Surveillance Plane Demand Rising Across Asia

Boeing Co. (BA), the second-biggest

defense contractor in the U.S., and Saab AB (SAABB) expect demand for

maritime and aerial surveillance systems to grow in Asia as

territorial disputes intensify.

Demand for maritime patrol craft and affiliated equipment

in the Asia-Pacific region is expected to grow steadily for the

foreseeable future, Chris Chadwick, head of Boeing’s defense

business, said yesterday in Singapore. Boeing and Stockholm,

Sweden-based Saab both manufacture aircraft used for maritime

patrol and surveillance.

“Every country has the responsibility to look after their

borders and territories,” Anders Dahl, head of Singapore

operations for Saab, said yesterday. “If you look at the

geography of the region, that is very complicated.”

U.S. Defense Secretary Chuck Hagel is in Singapore this

weekend as the sinking of a Vietnamese fishing boat after a

collision with a Chinese vessel increases tension in Asia. China

has been pressing territorial claims against Japan and the
Philippines, two U.S. allies, and Vietnam, a former American foe

that now welcomes U.S. military visits.

The U.S. has “a huge interest” in keeping sea lanes in

the region open for commerce, Hagel told reporters on board a

military aircraft on his way to Singapore. Hagel said he planned

to discuss the South China Sea tensions in “some specific

terms” and sees areas where China is “overplaying its hand.”

Chinese Drilling

China’s deployment of a drilling rig near the contested

Paracel Islands sparked violent protests in Vietnam this month

and led China to send ships to evacuate workers from the country

after three Chinese nationals were killed. It spurred

confrontations between coast guard vessels, including the use of

water cannons and accusations of boats being rammed. China says

the rig is in its territory and that it has long drilled in the

area.

The U.S. has urged the Association of Southeast Asian

Nations and China to agree on a code of conduct for the South

China Sea and called China’s actions “provocative” after the

clashes with Vietnam. Even nations that have kept out of the

territorial disputes are now being drawn in, with Indonesia

noting China’s “nine-dash line” map, which covers a large part

of the South China Sea, touches on waters in its Riau province.

To contact the reporter on this story:

Kyunghee Park in Singapore at

kpark3@bloomberg.net

To contact the editors responsible for this story:

Anand Krishnamoorthy at

anandk@bloomberg.net

Jim McDonald

Boeing, Saab See Surveillance Plane Demand Rising Across Asia