$100bn to develop Asia airports
The Asia-Pacific region including Thailand is seeing a boom in airport development, with more than 350 projects worth a combined US$100 billion planned for the next decade to cater to the fast-growing aviation industry.
Frost & Sullivan (F&S), an international research house, said most of the investment would be in India and China.
Airport development and expansion have been rampant in the region, notably in China, India, Thailand, Indonesia, Australia, Malaysia and the Philippines.
A recently approved US$2-billion outlay would expand Suvarnabhumi airport to handle 60 million passengers annually in 2015, up from 45 million now. Phuket airport is also expected to undergo an expansion that will be completed in 2014.
The Asia-Pacific region has been experiencing a very positive increase in passenger and cargo traffic in recent years, with the exception of last year, when traffic fell due to the economic crisis, said Cheong Chern Wai, an aerospace and defence consultant at F&S.
But in general, rising economic standards in the region have driven demand for air travel and logistics. This has resulted in congestion and the need for upgrades to accommodate larger numbers and sizes of aircraft.
Airports such as those in Singapore and Kuala Lumpur have engaged in numerous upgrade programmes to support future plans to accommodate larger capacity in terms of both cargo and passengers, said Mr Cheong.
Airports have faced many challenges, but the recent economic downturn proved to be one of the toughest, as many stakeholders were hit hard.
Declines in passenger and cargo traffic, fluctuating fuel prices and airlines cutting costs, routes and flight frequencies resulted in airports suffering a reduction in aeronautical revenue.
Airports have had to implement innovative business strategies by focusing on their land operations to generate enough revenue to help offset the revenue decrease on the aeronautical side.
Retail businesses have been successful for many airports, enabling them to sustain operations amid the recent volatility.
Credit: Bangkok Post
The Asia-Pacific region including Thailand is seeing a boom in airport development, with more than 350 projects worth a combined US$100 billion planned for the next decade to cater to the fast-growing aviation industry.
Frost & Sullivan (F&S), an international research house, said most of the investment would be in India and China.
Airport development and expansion have been rampant in the region, notably in China, India, Thailand, Indonesia, Australia, Malaysia and the Philippines.
A recently approved US$2-billion outlay would expand Suvarnabhumi airport to handle 60 million passengers annually in 2015, up from 45 million now. Phuket airport is also expected to undergo an expansion that will be completed in 2014.
The Asia-Pacific region has been experiencing a very positive increase in passenger and cargo traffic in recent years, with the exception of last year, when traffic fell due to the economic crisis, said Cheong Chern Wai, an aerospace and defence consultant at F&S.
But in general, rising economic standards in the region have driven demand for air travel and logistics. This has resulted in congestion and the need for upgrades to accommodate larger numbers and sizes of aircraft.
Airports such as those in Singapore and Kuala Lumpur have engaged in numerous upgrade programmes to support future plans to accommodate larger capacity in terms of both cargo and passengers, said Mr Cheong.
Airports have faced many challenges, but the recent economic downturn proved to be one of the toughest, as many stakeholders were hit hard.
Declines in passenger and cargo traffic, fluctuating fuel prices and airlines cutting costs, routes and flight frequencies resulted in airports suffering a reduction in aeronautical revenue.
Airports have had to implement innovative business strategies by focusing on their land operations to generate enough revenue to help offset the revenue decrease on the aeronautical side.
Retail businesses have been successful for many airports, enabling them to sustain operations amid the recent volatility.
Credit: Bangkok Post
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