How to manage booming capacity – Asian aviation case
Asia is one of the most important aviation markets as it undoubtedly ascending. The number of air passengers in Asia keeps continuously growing, concurrently driving global air traffic. Aggregate factors, implicating fast economic development, liberalization of the market, growing middle class and bigger salaries – all largely contribute to the significant growth of air traffic in the region, making it highly compelling. The expansion of low cost market in the region also attributes to industry development.
Air travel in certain regions of Asia still awaits unprecedented growth to ultimately exceed markets of North America and Europe together. IATA predicts Asia-Pacific region to comprise more than half of the world’s passenger traffic by 2035. According to the forecast, China is on its way to become the biggest air passenger market in the world, reaching 921 million of expected new passengers for a total of 1.5 billion by 2036. The 13th Five-Year Plan of CAAC indicates that main directions awaiting development for the next couple of years in Mainland China will be aimed at improving safety and service level, building efficient airport network, promoting general aviation, and supporting environmentally friendly projects.
Regional specific features & focal points
Asia Pacific region is often described as the future of the worldwide aviation. IATA forecasts the market to spell around 40% of worldwide passenger traffic in the next two decades. While air travel and connectivity grow, contributing to tourism development, facilitating trades and stimulating the growth of national economies, some related sectors cannot keep up with the up-tempo of air travel rise. One of the biggest barriers is set by the infrastructure, which is not always being fast enough to meet the ballooning air travel demand.
In many parts of Asia Pacific, including Australia, Oceania and East Asia, huge investments are already being made into maintenance and management of airports, building relevant logistics infrastructure and developing facilities for tourism. However, the issue of increasing airport capacity still remains open and relevant for the majority of regions.
Aviation market of South Asia is known as one of the most promising markets in the world. It is constantly expanding connectivity, concerning both domestic and international travel, and the competitiveness of aviation business in the region increases fast. South East Group countries, in turn, have really pushing intentions to develop regional air travel at the moment, however their low-cost carriers are still government regulated, which substantially withdraws the market expansion.
The Central Asia is expecting slow but steady growth, built on a model different from that of aviation “boom” peculiar to Asia Pacific. The region possesses its vantage points: for example, Kazakhstan makes a perfect interlink between Asia and Europe. Keeping the industry growth steady, and having convenient geographical location, the region stands a good chance to grow into an essential aviation hub.
Since air travel demand in Asia is booming, exponential growth requires special measures to use its potential efficiently. This makes a perfect point for a broader discussion, substantial to ensure stable and solid market expansion.
Sustainable solutions to be found: AIR Convention Asia
The idea of examining challenges of the aviation market to foster productivity provided the basis for AIR Convention Asia 2019 – a universal platform, organized to open up a discussion. More than 1 500 attendees from 50 countries, including impressive numbers of airline high level representatives, experts and industry leaders, and over 100 high profile speakers will gather to start a conversation on the most pressing issues, typifying Asian aviation market.
With innovation as an underlying concept, AIR Convention event will focus on the fields of expertise developed in – and for – Asia within three conference panels. Consumer Behavior panel will cover the growth of the middle class; appealing to younger generations of consumers; changing purchasing habits, as well as new approaches to marketing in terms of increased competitiveness of the market. Finance & Banking panel will explore how Asia‘s growth impacts economy, revealing contemporary finance solutions and emerging technology like blockchain, cryptocurrencies and more. The Air Technology panel is designed to give an extensive outlook on how progressive tech solutions in Asia - ranging from smart security practices to augmented reality projects - can define the future of aviation.
The three panels will be combined by Commercial Aviation Forum – the basis of the conference and the only panel examining the global state of affairs. The Forum will explore existing market patterns within different aviation sectors such as airlines, MROs, airports, aircraft & engine manufacturing, aviation training and more. Apart from the conference, AIR Convention 2019 will introduce some brand new exclusive events and activities, including Gala dinner fundraising event and “Meet the Airline” initiative: short face-to-face meetings organized with airlines and exhibitors.
AIR Convention 2019 will take place in Bangkok, Thailand, in May 2019. The chosen location strongly represents values of the vastly developing region. Bangkok is indeed an ambitious aviation capital – having one of the busiest aviation systems in the world, it is straight on its way to make Thailand a major and significant aviation hub.
Attending a conference is an excellent chance to meet thousands of aviation influencers in a headstrong and diverse city of Bangkok. Snatch an opportunity to discover unlimited networking in just three days and discuss the trends that lie on the threshold of aviation future. More information about the event: www.airconventionasia.com
BOC Aviation writes down $804 million for 17 jets stranded in Russia
BOC Aviation reports a net loss after tax of $313 million for the first half of 2022. ...
SAS secures $700M financing to support operations during Chapter 11
Scandinavian airline SAS says it secures $700 million in financing as part of its Chapter 11 restructuring process ...
Turkish Airlines posts $737 million net income for H1 2022
Turkish Airlines has posted a net income of $737 million in the first half of 2022. ...