Asia-Pacific Airports Face $1.3 Trillion Investment Challenge to Meet Soaring Demand

The skies are buzzing with activity in the Asia-Pacific region as air travel rebounds to pre-pandemic levels and beyond. This booming growth, however, presents a formidable challenge: a need for significant investment in airport infrastructure to accommodate the projected surge in passengers. Airports Council International Asia-Pacific & Middle East (ACI APAC & MID), the trade body representing 617 airports across 46 countries and territories, has sounded the alarm, calling for a collective effort to ensure financial resilience and sustainable development to support the region’s vibrant aviation sector.

With the Asia-Pacific region expanding at an annual rate of 5.8%, surpassing the global average of 4.3%, it is projected to account for a staggering 40% of global passengers over the next two decades. The 3.4 billion passengers who took to the skies in 2023 are expected to swell to over 8.7 billion by 2042, a monumental increase that necessitates substantial investments in infrastructure.

ACI APAC & MID’s long-term forecast estimates a staggering US$ 2.4 trillion in global capital expenditure, with Asia-Pacific alone requiring a colossal US$ 1.3 trillion, including US$ 579 billion for greenfield airport development. The association highlighted the financial strain airports are facing, especially in the aftermath of the COVID-19 pandemic. To address these challenges, the organization proposed a roadmap for sustainable infrastructure development, emphasizing the need for financial viability and responsible growth.

Recognizing the significant forecasted growth in airport infrastructure investment, ACI APAC & MID, through an Information Paper, stressed the need to integrate security considerations into the design phase for any new infrastructure. This proactive approach, termed ‘Security-by-Design’, aims to enhance operational performance by anticipating and incorporating security measures from the very beginning. The association urged states to collaborate with airports to ensure that aviation security elements are adequately considered in the design phase, ultimately improving operational efficiency and passenger safety.

The conference also underscored the crucial role of environmental sustainability in the aviation industry. ACI APAC & MID’s Net Zero Roadmap programme, aimed at achieving carbon neutrality, was highlighted as a vital tool for ensuring a sustainable future for air transport. The association has recently partnered with Riyadh Airports Company and Mactan Cebu International Airport to assist these airports in establishing their own net zero roadmaps.

Safety, a cornerstone of the aviation industry, was also a prominent theme at the conference. ACI APAC & MID, in collaboration with industry associations such as CANSO, Flight Safety Foundation, International Federation of Air Line Pilots Associations, and International Federation of Air Traffic Controllers’ Associations, regulators, and airport operators, advocated for a robust safety culture. Recognizing the paramount importance of safety in the long-term resilience and growth of the aviation sector, the conference urged states and administrations to adopt positive safety culture indicators as part of their safety assessments.

Mr. Stefano Baronci, Director General of ACI Asia-Pacific & Middle East, aptly summarized the key takeaway from the conference: “With the Asia-Pacific region driving the global growth in air travel, investing in modern, efficient, and sustainable airport infrastructure is no longer an option – it is now a necessity. As airports continue to play a crucial role in the socio-economic development of their regions, they must be equipped to meet growing demand while maintaining financial viability for decades to come. At the same time, as the industry evolves, we must also prioritize enhanced safety, explore innovative ways to strengthen aviation security, promote diversity and inclusion, and place a sharper focus on environmental sustainability.”

ACI APAC & MID further emphasized the importance of promoting diversity and inclusion within the airport workforce. The organization believes that a diverse and socially inclusive workforce will not only help address workforce shortages but also enhance organizational performance, fostering a more dynamic and effective aviation sector.

The conference’s call for action emphasizes the need for a collaborative approach between governments, industry stakeholders, and airports to ensure the sustainable growth of the Asia-Pacific aviation sector. By prioritizing financial resilience, sustainable infrastructure development, and safety, the region can navigate the challenges and seize the opportunities presented by its remarkable growth in air travel.

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