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Asian airport investment vital for regional growth
A glitzy new airport that opened recently in Thailand reflects Asia’s need for investment to cope with a fast-growing aviation sector, industry analysts say.
While the opening of Suvarnabhumi international airport has intensified rivalry within Asia for market share, analysts say an expanding aviation sector means there is enough business for everybody.
“We are not worried about over-investing,” said Paul Behnke, director of economics at Airports Council International (ACI).
“There is under-investment in some of the key countries and frankly, airport capacity is in short supply.”
Passenger traffic in the Asian region is projected to grow 8.0 percent in 2006 and 7.8 percent next year, faster than the global average of 5.1 percent for the same period, according to ACI.
“The reality is the region needs new international capacity and we welcome new capacity,” he said.
“I don’t see many airports out there that are terribly under-utilised.”
Bangkok’s new airport, which cost 3.0 billion US dollars, has a capacity of 45 million passengers a year, well ahead of its rivals in Singapore and Malaysia.
Asia needs to continue developing its key airports if the region’s economies, especially the tourism sector, are to blossom, analysts said.
“Asia’s major hubs will continue to have to invest in new airport capacity, to meet expected trade and tourism growth,” said Peter Harbison, executive chairman of CAPA, a Sydney-based independent aviation consultancy.
“The capacity shortages run the risk of undermining hub competitiveness, not to mention inconvenience to passengers, while airport congestion can also lead to financial loss for airlines,” he said.
John Koldowski, director for strategic intelligence at the Bangkok-based Pacific Asia Travel Association, said airport investment places the region in a strong position to cater to Asians’ rising affluence.
“The near-term future for air travellers particularly is very, very strong,” Koldowski said.
“Asia is the place to be, period. You have a good-sized population and they are becoming richer… that is a good combination,” he said.
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