Regional aircraft markets will need US$600 billion in investments to meet the demand for 150-seat 10,550 aircrafts by 2038 due to rise in air travelers, according to Embraer, the Brazilian aerospace conglomerate.
Market growth will drive 65% of this demand for the aircrafts, while the remaining 35% will replace ageing aircrafts, it said in a report.
These developments will be one of the highlighted investment opportunities at the next edition of Global Investment in Aviation Summit, GIAS, held on 27th-29th January 2020, in Dubai under the theme ‘Enabling Global Aviation Growth through Fund Raising and Key Partnerships’.
Saif Mohammed Al Suwaidi, GCAA Director-General, said: “Investments in aviation are more vital now as regional aviation enjoys the economic benefits of robust tourism and improved regional connectivity. The rapid growth of aviation is propelled by many factors, including booming tourism industry, lower air fares, improved connectivity, and the rise of disposable incomes with the middle-class expansion. All these and more will be part of the investment opportunities that will be presented at GIAS.”
According to the Embraer report, the Asia Pacific region will drive the highest market share for 150-seat aircraft capacity by 28% or 3,000 deliveries. North America follows closely behind with 2,780 (27%), Europe with 2,240 (21%), Latin America with 1,140 (11%), CIS with 580 (6%), Africa with 450 (4%) and the Middle East with 360 (3%), the report added.
As regional integration of aviation expands, the volume of business travelers, trade and logistics operations are expected to increase. The consistent growth of the aviation industry will also call for the improvement of human resource requirements as well as safety and congestion issues.
The UAE has been leading the regional aviation industry with an impressive volume of passenger and cargo traffic every year. Through the UAE’s GCAA, the nation’s progressive approach to sustain the growth of its local aviation is remarkably shown by investments made in training of airline and airport personnel.
To address the issue of airspace congestion, the UAE’s aviation authority launched their ‘Airspace Restructuring Project’ in 2017 which relies on satellite and airplane computers to guide aircrafts with their routes.
Al Suwaidi also added that as aviation is a key pillar in UAE national economy, the nation is investing heavily on modernization and expansion of its major international airports to meet the demands for passenger traffic which is anticipated to increase every year.
The event will bring together more than 200 investors, besides selected government officials, aviation organizations, finance and insurance firms, aviation asset owners, aircraft operators and logistic service providers and legal consultants, and it highlights the biggest investment opportunities in the aviation industry with all its various sectors throughout the globe.