IATA emphasizes on infrastructure in the Asia-Pacific region

TravelBizNews Online –  

Chinese Taipei:  The International Air Transport Association (IATA) called for urgent action to address the challenges of infrastructure, regulatory harmonization and sustainability.

“The 34 million jobs and $700 billion of economic activity supported by aviation across the Asia-Pacific region are expected to more than double in the next 20 years. But the realization of these economic benefits is at risk if the region does not address the big long-term challenges of sustainability, infrastructure and regulatory harmonization,” said Alexandre de Juniac, IATA’s Director General and CEO in an address to delegates attending the Association of Asia Pacific Airlines (AAPA) Assembly of Presidents in Chinese Taipei.

The Asia-Pacific region faces a difficult challenge in coping with growth in demand. IATA’s latest 20 year air passenger forecast expects 7.8 billion passengers to travel in 2036. That is almost twice the 4 billion passengers expected this year.

 More than half the growth will be in the Asia Pacific, with the region accounting for some 2.1 billion new travelers in 2036, according to an IATA statement.

“We are headed for a major infrastructure crisis. In many ways the Asia-Pacific region is ahead of the game with major hubs having robust expansion plans. But there are challenges. Bangkok, Manila and Jakarta are among airports that need major upgrades. Chinese air traffic management struggles to cope with growth. And high costs at India’s privatized airports are burdening the industry. The challenge for governments is to ensure sufficient capacity that is affordable and in line with airlines’ operational requirements.”

He also cautioned against privatization as a solution to fund infrastructure investments. “We have no issue with injecting private sector mentality into the operation of any airport. But our conclusion from three decades of largely disappointing experiences with airport privatization tells us airports perform better in public hands.” 

“The primary focus of airports should be to support local and national prosperity as an economic catalyst. But in private hands, shareholder returns take top priority, leading to costs increases. And economic regulation has yet to produce any long-term success stories in balancing national and private interests,” said de Juniac.

Oct. 29, 2017