The region plays a crucial role in the future growth of the aviation industry due to its economic growth and urbanisation, population size, emerging markets, infrastructure development, airline expansion and fleet renewal, tourism growth and strategic location for international connectivity.
Some countries in the Asia-Pacific region have implemented liberalised policies and open skies agreements, promoting competition and boosting growth of the aviation sector.
Obviously, these measures will lead to increased efficiency, better services, and more choices for passengers.
While opportunities exist, challenges remain.
Industry experts say a lot of travel in Asia-Pacific is "price sensitive" and with many airlines in the region still struggling financially, they will have little ability to absorb significant costs.
Geopolitical issues, such as the war in Ukraine and the Middle East crisis could push fuel prices up. For airlines as a whole, this is a major concern and will lead to more cost, unavoidable ticket price increases, and possibly a subsequent drop in demand, they say.
“Even so, we expect that Asia-Pacific will be the fastest growing region over the next 20 years,” points out Philip Goh, IATA’s regional vice-president (Asia-Pacific).
“You have to weigh the challenges against the opportunities. I am sure that in the years ahead, China, India, Indonesia, and many others will be among the top aviation markets in terms of growth and absolute numbers.”
Such a positive outlook requires support on the ground and in the air. In terms of airports, at first glance, Asia-Pacific seems to be in a good position, he says.
New airports are due to open in India and there are several other projects ongoing, from Sydney to Vietnam to T5 in Singapore. Incheon, Seoul’s international gateway, also has ambitious plans.
But Goh notes that it is important for infrastructure development to be well-timed and well planned.
“That is why we need to keep a careful eye on the strength of markets in 2024 as the region competes its recovery,” he says.
“We don’t want airports that are not aligned to demand. And most importantly, infrastructure costs need to be managed to avoid an increased burden on users.
“That means there must be greater consultation with airlines,” he insists.
“Carriers must be involved in the design and planning of facilities but too often there is a lack of transparency. Remember, airlines have to forward plan as well, so they need to be included in any major aviation projects.”
Goh advises that new facilities should be as future-proof as possible. Sizeable infrastructure in many key cities will likely be increasingly difficult to build so what is being developed today must have longevity.
“That is easier said than done. Notable changes in the existing processes are anticipated, including contactless travel for travellers, streamlined border controls, and driver-less vehicles on the apron. Moreover, bag drops are being transformed and air cargo is going through its own digital transformation.
“We have to think through these topics carefully and ensure that infrastructure is fit for purpose, now and for years to come,” Goh suggests. “This can’t just be about building a bigger airport. We must be smarter than that.”
The Asia-Pacific region's significance in the future growth of the aviation industry is driven by its economic dynamism, large population, expanding middle class, infrastructure development, and its role as a key hub for international air travel.
As the region continues to develop, it is very likely to remain a major driver of global aviation industry expansion.