Regional aircraft market needs $600b to cope with growth
Regional aircraft markets across the globe will need to meet the demand for 150-seat 10,550 aircraft by 2038 in line with projected growth in travel demand.
Dubai - UAE investing heavily on modernisation, expansion of its major airports to meet rising demands
Investments in aviation are more vital now as regional aviation enjoys the economic benefits of robust tourism and improved regional connectivity, says Saif Mohammed Al Suwaidi, director-general of the UAE General Civil Aviation Authority (GCAA).
"The rapid growth of aviation is propelled by many factors, including a booming tourism industry, lower air fares, improved connectivity, and the rise of disposable incomes with the middle-class expansion," said Al Suwaidi.
He said as aviation is a key pillar of the UAE economy, the nation is investing heavily on modernisation and expansion of its major international airports to meet the demands for passenger traffic which is anticipated to increase every year.
His comments came as aircraft manufacturers Airbus and Embraer forecast the outlook for the regional aircraft demand.
Embraer, the Brazilian aerospace conglomerate, said regional aircraft markets across the globe will need $600 billion in investments to meet the demand for 150-seat 10,550 aircraft by 2038 in line with the projected growth in travel demand.
"Market growth will drive 65 per cent of this demand for the aircraft, while the remaining 35 per cent will replace ageing aircraft," the planemaker said in a report.
Airbus foresees demand for the new 100-150 seat aircraft to grow to at least 7,000 over the next 20 years with the Asia-Pacific region contributing 20 per cent to the market size.
Head of communications for Asia-Pacific Sean Lee said the company was targeting 50 per cent of the market share for both global and the Asia-Pacific region.
"The air transport market for this region is growing a lot faster than the other parts of the world, and the aircraft of this size is suitable for airlines that want to expand its regional routes."
According to the Embraer report, the Asia-Pacific region will drive the highest market share for 150-seat aircraft capacity by 28 per cent or 3,000 deliveries.
North America follows closely behind with 2,780 (27 per cent), Europe with 2,240 (21 per cent), Latin America with 1,140 (11 per cent), CIS with 580 (6per cent), Africa with 450 (4 per cent) and the Middle East with 360 (3 per cent), the Embraer report said.