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KEYWORDS: Regional airlines, Regional, Regional airlines carve a niche DESCRIPTION: The next decade will see the aviation industry dominated by growth in Middle East and Asia with consolidation in traditional markets creating a new era of streamlined operations and introduction of a new mega-carrier business model. AUTHOR: TITLE: Regional airlines set to carve a niche in the next decade

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Regional airlines set to carve a niche in the next decade

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 The next decade will see the aviation industry dominated by growth in Middle East and Asia with consolidation in traditional markets creating a new era of streamlined operations and introduction of a new mega-carrier business model. 

These findings were highlighted by the new Ernst & Young industry report – ‘Looking to the skies: global aviation trends 2013 – 2033?.

The report examined the industry looking at opportunities and challenges facing airlines, airports and governments. The report also evaluated how to capture increased passenger traffic while managing soaring aviation fuel costs and new government-levied fees and taxes.

“The growth of aviation business is directly linked to that of global GDP and emerging markets are ones driving economic growth and fuelling air traffic development. The industry has grown by 53% since 2000 and will continue to grow airline traffic at five percent Revenue Passenger Kilometre (RPK) until 2023,” he said.

The report noted that Middle East carriers will see market share rise to 11% in 2031 from the current figure of seven percent. Year-on-year RPK growth by Middle East-based carriers is also being factored into the equation, rising from 11.4% to 15.6%, driven by long-range aircraft capability and he region’s newly developed airport hubs.

A number of Gulf carriers are also joining global alliances, with others entering into strategic code shares to promote traffic flows between continents.

Source: traveldailymedia.com
 
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