Regional aircraft market needs $600b to meet demand surge

DUBAI / WAM

Regional aircraft markets will need $600 billion in investments to meet the demand for 150-seat 10,550 aircrafts by 2038 due to rise in air travellers, according to Embraer, the Brazilian aerospace conglomerate.
Market growth will drive 65 percent of this demand for the aircrafts, while the remaining 35 percent 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 January 27-29, 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 percent or 3,000 deliveries. North America follows closely behind with 2,780 (27 percent), Europe with 2,240 (21 percent), Latin America with 1,140 (11 percent), CIS with 580 (six percent), Africa with 450 (four percent) and the Mid-
dle East with 360 (three percent), the report added.
As regional integration of aviation expands, the volume of business travellers, 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.