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AAPA and ACI agree on urgent need for more, better infrastructure

Analysis

(KUALA LUMPUR, 05 December 2005) Airports Council International (ACI) Director of Economics, Paul Behnke, today called on governments and airport operators across the Asia Pacific region for increased investment in airport capacity.

Summary
  • Increased investment in airport capacity is necessary to accommodate the growing demand for air transport services.
  • The worldwide airport system may struggle to accommodate over 1 billion passengers by 2020 without intelligent airport investment.
  • Granting foreign carriers access to secondary airports can alleviate congestion at hub airports and benefit secondary airports and cities.
  • Investment in "smart" infrastructure, particularly airport facilities, is crucial for efficient and cost-effective operations.
  • Outlook 2006, a review of prospects for the Asia Pacific and Middle East airline industry, focuses on revenue maximization, cost reduction, and the role of government.
  • The Centre for Asia Pacific Aviation is a leading independent air transport advisory group and publisher of aviation-related information.

According to Mr Behnke, "with today's constraints, and without more intelligent airport investment, by 2020 the worldwide airport system may be unable to comfortably accommodate more than 1 billion passengers of the 7 billion forecasted to demand air transport services…It's all about airport capacity".

As a complementary measure to airport investment, Mr Behnke suggested that countries should adhere to the Centre's Manifesto for Growth, which calls on Asia Pacific governments to grant foreign carriers access to their secondary airports. Doing so, he said, would alleviate some of the congestion at hub airports, while also benefiting the nation's secondary airports and cities.

Association of Asia Pacific Airlines (AAPA) Secretary General, Andrew Herdman, also called for investment in "smart" infrastructure. "Happily, governments in this area have been willing to invest in aviation. But that investment increasingly needs to be focused, especially on supply-side infrastructure", such as airport facilities, "so that we have more efficient, cost-effective inputs," he said.

Outlook 2006 is the Centre's annual review of prospects for the Asia Pacific and Middle East airline industry. This year the event is focusing on the issues of revenue maximisation and cost reduction, with a special section examining the role of government. Convening in the Malaysian capital, Outlook 2006 has brought together leaders from the extended region's key stakeholders, representing every segment of the aviation arena, including airports, regulatory bodies and airlines themselves, with both full service and low cost carriers participating.

The Centre for Asia Pacific Aviation, is the region's leading independent air transport advisory group. With offices in New Delhi, Singapore, Geneva, Vancouver and the UK, the Centre remains at the forefront of the Asia Pacific and Middle East low cost movement, having advised numerous carriers on how to launch independent or major-affiliated budget airlines, as well as advising major airlines on restructuring exercises.

The Centre is also the region's pre-eminent publisher of aviation-related information, with regular newsletters and reports, including such acclaimed publications as the monthly strategy report Aviation Analyst - Asia Pacific, and Peanuts!, its weekly look at the global low cost sector. The daily publication Asia Pacific Airline Daily, which summarises and analyses the sector's vital issues.

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