global scenario of airport business

Global Scenario
To evaluate the airport industry business performance, demand and
supply factors are essential. The demand for air traffic is growing drastically
due to the growth in the world economy. There are about 17000 airports
operating globally and providing air traffic services. These airports handle
approximately 3.7 billion passengers per annum, the traffic of major airports is
concentrated in three regions (North America, European and Asia Pacific) . The
airports in these regions contribute 92.0 per cent of the total air traffic. Let us
see the t Global Airport Traffic Performance for the last five years (2000-01
to 2004-05), which was revealed by the Voice of Airports Council
International (ACI) below;
The demand for air transport in Asian region is raising much faster than
any other regions in the world, due to the rapid economic growth in terms of
(national income, per capita income and standard of living), industrial
expansions, Foreign Investments Inflow (FII),Technological innovations,
friendly government economic policies and the expansion of international
tourism. To meet the growth of demand in air traversal a number of new an
expansion projects on airports have been launched at several locations In Asia.
In the last four years (1996-2000), three international airports Hong Kong,
Kula Lumpur and Seoul in the region have opened with individual handling
capacity of 30 million passengers per annum, Mainland China, India, Indonesia,
Singapore, Thailand, and Vietnam are also actively planning for expansion and
constructing or modernizing the airport terminals to meet the growing demand
of air travel in the region. Asian region passenger traffic is projected to touch
800 million by 2012 from 517 million in 2003-40. Favorable optimistic
economic growth in Asia indicates that there will be a highest market potential
for artifice growth as compared to other regions, the major Asian market for air
traffic demand will be china, Japan, Thailand, Singapore. India, Malaysia,
Indonesia and Vietnam in the coming decade as for cased by Boeing, A
according to ACI traffic report, the 10 largest airports in Asian region handled
approximately 425-450 million passengers (International and Domestic)
Japan (Haneda and Narita), Chinas (Hong Kong ), Thailand (Bangkok)
and Singapore Change all together handled 180 million international passengers
and rank on the top 30 international airports in the world. There are other 50
major airports in Asia, which are also expected to handle 500 million
passengers by 2015.
The World Air Transport Scenario
There are 1300 scheduled Air Carriers in the world, operating 18000
aircraft over a route network of more than 15000 kilometers and serving 14000
airports. There air approximately 12000 aircraft in the air at any given moment.
Preliminary estimates released by ICAO, 2002 states that total scheduled traffic
of the worlds airlines in 2002 was 5.0 per cent in terms of terms of tone-
kilometers and international scheduled traffic was up by 6.0 per cent. Further,,
ICAO estimated the passenger in terms of passenger - kilometers performed
rose by 6.0 per cent, while freight traffic growth was 7.0 per cent. In 2003, the
ICAO Member Airlines totaling 188 countries carried 1700 million passengers,
totaling arrival together accounts 3,4 billion passengers and 50 million tones of
freight.
Asia Pacific Scenario
Demand for air transport in the Asia Pacific is growing faster than in any
otherworld region, According to Air Transportation Action Group (ATAG), the
air transport growth revealed by an average of 12.1 per cent annum between
1985 and 1995 followed by 7,5 per cent per annum between 1995 and 2000 and
2010. The regions share of worldwide scheduled passenger traffic is expected
to grow from 25.1 per cent in 1985 to 51.1 percent in 2010.according to IATAs
latest figure. Asia Pacific Air Transport Forecast, the economics of Asia Pacific
will be similar in size to North America or Europe and this will account for half
of world international air travel.


Asian Scenario
The demand for air transport in Asian region is raising much faster than
any other regions in the world, due to the rapid economic growth in terms of
(national income, per capita income and standard of living), industrial
expansions, Foreign Investments Inflow (FII), Technological innovations,
friendly government economic policies and the expansion of international
tourism. To meet the growth of demand in air traversal a number of new an
expansion projects on airports have been launched at several locations In Asia.
In the last four years (1996-2000), three international airports Hong Kong,
Kula Lumpur and Seoul in the region have opened with individual handling
capacity of 30 million passengers per annum, Mainland China, India, Indonesia,
Singapore, Thailand, and Vietnam are also actively planning for expansion and
constructing or modernizing the airport terminals to meet the growing demand
of air travel in the region
Asian region passenger traffic is projected to touch 800 million by 2012
from 517 million in 2003-40. Favorable optimistic economic growth in Asia
indicates that there will be a highest market potential for artifice growth as
compared to other regions, the major Asian market for air traffic demand will be
china, Japan, Thailand, Singapore. India, Malaysia, Indonesia and Vietnam in
the coming decade as for cased by Boeing, A according to ACI traffic report,
the 10 largest airports in Asian region handled approximately 425-450 million
passengers (International and Domestic).Japan (Haneda and Narita), Chinas
(Hong Kong), Thailand (Bangkok) and Singapore Change all together handled
180 million international passengers and rank on the top 30 international
airports in the world. There are other 50 major airports in Asia, which are also
expected to handle 500 million passengers by 2015.

Significance of Aviation Industry
Aviation industry plays a vital role in the world economic activity and
fuels the growth and financial strength of the country, in todays rapidly
changing global economy, aviation sector drives economic progress, promoting
leisure and business activities, it provides high value of communication and
distribution links with the developed, developing and interdependent markets. It
makes possible the rapid movement of millions of people and billions of dollars
worth of goods to market around the world. Aviation industry provides the
foundation for international tourism and constitutes a higher proportion of the
value of exports compared to other products.
Aviation industry is influenced by the status of world economy. Air
transport industry is an economic strength of a nation, which attracts new
industries, global business and enhances global reach. Worldwide demand for
air travel will continue to grow at an average annual growth rate of 5.2% during
1997-2015. The world air passenger traffic touched 2.13 billion in 1999. Indias
share in the world air traffic was 1.9% during the same period.
The demand for air transport in Asia-Pacific region is growing faster than
other regions in the world. The main reason is rapid economic growth and
expansion of tourism industry in the region. A number of new and expansion
projects on airports have been launched at several locations in Asia-Pacific to
meet the air traffic growth, Among the top airports in Asia-Pacific region, 70%
of international traffic is handled by North-East Asian countries airports and the
South East and South Asian regions major international airports handle 22%
and the remaining 8% of international air traffic is handled by Pacific region.
Air traffic to and from Indian airports has developed, and is continue to develop
at a staggering pace. The total volume of air passengers traffic soared to 70.0
million in 2005-06. India ranks 80
th
position among the top 100 international
airports traffic in the world, by contributing 6.5 million international
passengers traffic at Mumbai International Airport during the year 2005.
Aviation sector projected air traffic will grow by 7% and 10% in international
and domestic traffic from 1997 to 2015. There are 449 airports in the country.
The civil air traffic is primarily handled at 127 airports managed by the Airports
Authority of India. The major 5 international airports in the country are
Mumbai, Calcutta, Chennai, Delhi and Trivandrum, These airports play as a
gateway to foreign tourists and international trade by air Indias major air traffic
is mainly concentrated on these 5 major international airports. Later in 2000,
other 6 airports (Bangalore, Hyderabad, Ahmadabad, Goa, Amritsar and
Guwahati) were included in the international airports, adding to total 11
international airports. The proportions of international and domestic traffic at
these international airports in the country are 40;60 in international and
domestic air traffic. Air Cargo traffic proportions is 77;23 in international and
domestic cargo traffic. It is expecting that number will continue to rise in the
future