20th Anniversary Issue: Comment
Future holds even more promise for Asia-Pacific
October 1st 2013
What is two decades? It is 7,305 days. And a lot can happen in that time. Our work habits completely changed as we moved from seeing the office fax as a novelty to using smart phones as a necessity. The world’s economic centre of gravity shifted as Chinese GDP expanded by a factor of 12 and China grew to become the world’s second largest economy. Read More »
And the world became a much more connected place as the number of air travellers increased two and half times to three billion.
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| 'By 2030 the number of middle income earners in Asia is expected to grow six-fold … predicting even a quadrupling of the industry over the next two decades would most likely be a conservative estimate' |
| Tony Tyler Director General & CEO IATA |
The establishment of Orient Aviation in 1993 was a confirmation of one of the most remarkable developments in aviation - the expansion of commercial aviation across Asia.
The same year was a significant milestone for IATA as well. At our 1993 annual general meeting we welcomed our first members from Mainland China - Air China, China Eastern Airlines and China Southern Airlines.
Of course, aviation was not new to Asia. The potential for aviation to link the Asia-Pacific better, both internally and with the world, was clear.
But the region was not without issues. In the years that followed, the Asian aviation industry overcame many of the typical challenges: development, safety and infrastructure among them.
Today, the region’s safety performance is aligned with global standards. And the record of Chinese airlines is among the most impressive.
And thanks to an unprecedented building programme Asian growth has been accommodated in some of our industry’s most modern infrastructure. Bangkok, Kuala Lumpur, Hong Kong, Seoul, Osaka and Nagoya stand among the world’s newest major airports. In China, alongside major developments in the golden triangle of Beijing, Shanghai and Guangzhou, dozens of new airports were developed.
Airlines also invested in their future. Fleets and service offerings were modernized and expanded to meet the growing demand for global connectivity. The region’s airlines now rank among the top customers for aircraft manufacturers and are among the most popular for travellers.
The growth of aviation was a huge economic catalyst. Airlines brought visitors to fuel a rapidly growing tourism sector.
They enabled businesses to develop trade links. And they facilitated just-in-time manufacturing that integrates Asian factories into global supply chains. Today, airlines are at the heart of a value chain that supports some 24 million jobs and nearly $500 billion of economic activity across the Asia-Pacific.
| 'Over the past two decades, Orient Aviation has been a reliable industry partner. It has built an indispensable role for itself as a provider of superb insight into the development of Asian aviation. Congratulations and thanks to the dedicated team that built its tremendous credibility' |
| Tony Tyler |
Of course, celebrating an anniversary by looking to the future is much more productive than looking to the past. As much as Asian aviation has developed in the last two decades, the future holds even more promise.
By 2030, the number of middle income earners in Asia is expected to grow six-fold. That alone will drive a boom in travel and trade.
Aviation will continue to facilitate the trend of deepening trade links among emerging economies. And predicting even a quadrupling of the industry in the next two decades would most likely be a conservative estimate.
Even if all the stars are aligning for an even brighter future, success will not come without effort. Growth needs to be earned by the carriers and facilitated by governments. In that equation, I am more concerned about governments.
Intense competitive forces will most certainly keep the airlines on their toes. But governments, having reaped the economic benefits of aviation, must avoid “developed market disease”.
The symptoms are easy to spot. High taxes, onerous regulation and failure to invest in the future are the most common. Fortunately, the region’s response to the “developed market problem” of increasingly crowded skies gives us hope that governments will stay on course. The Seamless Asian Sky initiative shows that governments are cooperating to tackle this evolving issue. And, in the spirit of partnership, airlines are fully supporting their work.
There are not many certainties in our world today. The continued growth in demand for air connectivity in Asia is among the few that exist. IATA is determined to be a strong partner supporting the successful realization of that potential. And we will depend on Orient Aviation to continue to chronicle and interpret the amazing story as it unfolds.
