global scenario of airport business

Global Scenario

To evaluate the airport industry business performance, demand and supply factors are essential. The demand for air traffic is growing drastically due to the growth in the world economy. There are about 17000 airports operating globally and providing air traffic services. These airports handle approximately 3.7 billion passengers per annum, the traffic of major airports is concentrated in three regions (North America, European and Asia Pacific) . The airports in these regions contribute 92.0 per cent of the total air traffic. Let us see the t “Global Airport Traffic Performance” for the last five years  (2000-01 to 2004-05), which was revealed by the “Voice of Airports” Council International (ACI) below;

The demand for air transport in Asian region is raising much faster than any other regions in the world, due to the rapid economic growth in terms of (national income, per capita income and standard of living), industrial expansions, Foreign Investments Inflow (FII),Technological innovations, friendly government economic policies and the expansion of international tourism. To meet the growth of demand in air traversal a number of new an expansion projects on airports have been launched at several locations In Asia. In the last four years (1996-2000), three international airports – Hong Kong, Kula Lumpur and Seoul in the region have opened with individual handling capacity of 30 million passengers per annum, Mainland China, India, Indonesia, Singapore, Thailand, and Vietnam are also actively planning for expansion and constructing or modernizing the airport terminals to meet the growing demand of air travel in the region. Asian region passenger traffic is projected to touch 800 million by 2012 from 517 million in 2003-40. Favorable optimistic economic growth in Asia indicates that there will be a highest market potential for artifice growth as compared to other regions, the major Asian market for air traffic demand will be china, Japan, Thailand, Singapore. India, Malaysia, Indonesia and Vietnam in the coming decade as for cased by Boeing, A according to ACI traffic report, the 10 largest airports in Asian region handled approximately 425-450 million passengers (International and Domestic)

Japan (Haneda and Narita), China’s (Hong Kong ), Thailand (Bangkok) and Singapore Change all together handled 180 million international passengers and rank on the top 30 international airports in the  world. There are other 50 major  airports in Asia, which are also expected to handle 500 million passengers by 2015.

The World Air Transport Scenario

 There are 1300 scheduled Air Carriers in the world, operating 18000 aircraft over a route network of more than 15000 kilometers and serving 14000 airports.  There air approximately 12000 aircraft in the air at any given moment. Preliminary estimates released by ICAO, 2002 states that total scheduled traffic of the world’s airlines in 2002 was 5.0 per cent in terms of terms of tone-kilometers and  international scheduled traffic was up by 6.0 per cent. Further,, ICAO estimated the passenger in terms of passenger  - kilometers performed rose by 6.0 per cent, while freight traffic growth was 7.0 per cent. In 2003, the ICAO Member Airlines totaling 188 countries carried 1700 million passengers, totaling arrival together accounts 3,4 billion passengers and 50 million tones  of freight.

Asia Pacific Scenario

Demand for air transport in the Asia Pacific is growing faster than in any otherworld region, According to Air Transportation Action Group (ATAG), the air transport growth revealed by an average of 12.1 per cent annum between 1985 and 1995 followed by 7,5 per cent per annum between 1995 and 2000 and 2010. The region’s share of worldwide scheduled passenger traffic is expected to grow from 25.1 per cent in 1985 to 51.1 percent in 2010.according to IATAs latest figure. Asia Pacific Air Transport Forecast, the economics of Asia Pacific will be similar in size to North America or Europe and this will account for half of world international air travel.

Asian Scenario

The demand for air transport in Asian region is raising much faster than any other regions in the world, due to the rapid economic growth in terms of (national income, per capita income and standard of living), industrial expansions, Foreign Investments Inflow (FII), Technological innovations, friendly government economic policies and the expansion of international tourism. To meet the growth of demand in air traversal a number of new an expansion projects on airports have been launched at several locations In Asia. In the last four years (1996-2000), three international airports – Hong Kong, Kula Lumpur and Seoul in the region have opened with individual handling capacity of 30 million passengers per annum, Mainland China, India, Indonesia, Singapore, Thailand, and Vietnam are also actively planning for expansion and constructing or modernizing the airport terminals to meet the growing demand of air travel in the region

Asian region passenger traffic is projected to touch 800 million by 2012 from 517 million in 2003-40. Favorable optimistic economic growth in Asia indicates that there will be a highest market potential for artifice growth as compared to other regions, the major Asian market for air traffic demand will be china, Japan, Thailand, Singapore. India, Malaysia, Indonesia and Vietnam in the coming decade as for cased by Boeing, A according to ACI traffic report, the 10 largest airports in Asian region handled approximately 425-450 million passengers (International and Domestic).Japan (Haneda and Narita), China’s (Hong Kong), Thailand (Bangkok) and Singapore Change all together handled 180 million international passengers and rank on the top 30 international airports in the  world. There are other 50 major airports in Asia, which are also expected to handle 500 million passengers by 2015.

Significance of Aviation Industry

Aviation industry plays a vital role in the world economic activity and fuels the growth and financial strength of the country, in today’s rapidly changing global economy, aviation sector drives economic progress, promoting leisure and business activities, it provides high value of communication and distribution links with the developed, developing and interdependent markets. It makes possible the rapid movement of millions of people and billions of dollars worth of goods to market around the world. Aviation industry provides the foundation for international tourism and constitutes a higher proportion of the value of exports compared to other products.  

Aviation industry is influenced by the status of world economy. Air transport industry is an economic strength of a nation, which attracts new industries, global business and enhances global reach. Worldwide demand for air travel will continue to grow at an average annual growth rate of 5.2% during 1997-2015. The world air passenger traffic touched 2.13 billion in 1999. India’s share in the world air traffic was 1.9% during the same period.

The demand for air transport in Asia-Pacific region is growing faster than other regions in the world. The main reason is rapid economic growth and expansion of tourism industry in the region. A number of new and expansion projects on airports have been launched at several locations in Asia-Pacific to meet the air traffic growth, Among the top airports in Asia-Pacific region, 70% of international traffic is handled by North-East Asian countries airports and the South –East and South Asian region’s major international airports handle 22% and the remaining 8% of international air traffic is handled by Pacific region.

Air traffic to and from Indian airports has developed, and is continue to develop at a staggering pace. The total volume of air passenger’s traffic soared to 70.0 million in 2005-06. India ranks 80^th position among the top 100 international airports traffic in the world, by contributing 6.5 million international passenger’s traffic at Mumbai International Airport during the year 2005. Aviation sector projected air traffic will grow by 7% and 10% in international and domestic traffic from 1997 to 2015. There are 449 airports in the country. The civil air traffic is primarily handled at 127 airports managed by the Airports Authority of India. The major 5 international airports in the country are – Mumbai, Calcutta, Chennai, Delhi and Trivandrum, These airports play as a gateway to foreign tourists and international trade by air India’s major air traffic is mainly concentrated on these 5 major international airports. Later in 2000, other 6 airports (Bangalore, Hyderabad, Ahmadabad, Goa, Amritsar and Guwahati) were included in the international airports, adding to total 11 international airports. The proportions of international and domestic traffic at these international airports in the country are 40;60 in international and domestic air traffic. Air Cargo traffic proportions is 77;23 in international and domestic cargo traffic. It is expecting that number will continue to rise in the future