Air Transport Industry Foresees Robust Growth in Southeast Asia
The air transport sector is expressing strong confidence in the growth potential of the Southeast Asian market, anticipated to be among the world’s fastest-expanding regions. At Routes Asia 2024, held in Langkawi, Malaysia, industry leaders shed light on the promising future of aviation in Southeast Asia, backed by significant data and strategic insights.
Stefano Baronci, Director General of ACI Asia-Pacific and Middle East, underscored the expected ascent of Indonesia within the global passenger market rankings, projecting its rise to seventh place by 2032 and further to fourth by 2042. Highlighting the region’s growth prospects, ACI forecasts that the Philippines, India, Indonesia, and Thailand will lead as the fastest-growing markets from 2023 to 2042, with compound annual growth rates (CAGR) ranging between 6.2% and 7.2%.
Baronci emphasized the vast untapped potential in these markets, pointing out that a minuscule fraction of Indonesia’s population currently engages in air travel. He advocated for the liberalization of aviation skies and regulations to spur further connectivity and capacity growth across Southeast Asia.
Adding to the discussion, Malaysia Aviation Commission’s COO, Raja Azmi Raja Nazuddin, identified emerging demand potentials from Indonesia’s future capital, Nusantara, located on the island of Borneo. The development of this new capital, expected to kick off in the latter half of 2024, is projected to catalyze growth within the BIMP-EAGA (Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area) region. This area encompasses less developed territories in ASEAN, including Borneo island, Indonesian Kalimantan, and the southern Philippines, with Brunei positioned centrally. The BIMP-EAGA region alone represents a potential passenger base of approximately 80 million.
Boeing’s senior managing director for global strategic initiatives, Malcolm An, shed light on Indonesia’s current aviation landscape, noting that while the country boasts around 500 aircraft in service, only 6% are new-generation models. This scenario presents vast opportunities for fleet renewal and expansion, further fueling the region’s aviation growth.
The collective insights from Routes Asia 2024 underscore the air transport industry’s optimism regarding Southeast Asia’s potential. With strategic initiatives and liberalization efforts, the region is poised for unprecedented growth, making it a focal point for future aviation developments.