ASIA PACIFIC AVIATION:
Cashing In On Growing Opportunities
THE ASIA PACIFIC REGION REMAINS CONSIDERABLY RESILIENT AND GLOBALLY ALIGNED WHEN IT COMES TO THE TECHNO-OPERATIONAL ASPECTS OF THE REGIONAL AVIATION INDUSTRY. ALTHOUGH THERE ARE STILL POCKETS OF INADEQUACIES HERE AND THERE, THE GROWING PROSPECTS IN TERMS OF EMERGING OPPORTUNITIES ARE JUST THE PERFECT ELIXIR THAT THE REGION NEEDS TO FORGE AHEAD. AND, TO BE SURE, THE ASIA PACIFIC REGION APPEARS STOUTLY DETERMINED TO BE THE ULTIMATE HUB OF GLOBAL AVIATION.
Talking about international aviation operations, Asia Pacific (APAC) is definitely a region where the affordances of growing opportunities in the aviation ecosystem are harnessed based on a regional need for global alignment, whilst also leveraging innovations and technologies.
“The Asia-Pacific (APAC) region is closely aligned with global trends. I see lots of inspiration and takeaways from NextGen and SESAR in terms of revolutionizing air traffic management with advanced technologies, enhancing efficiency and safety. Whether AI or remote tower technologies, they are catching up all over the world globally though they are initiated mostly in Europe or in the USA,” says Senthilvel Balasubramanian, the Asia Pacific Regional Director for the International Federation of Air Traffic Safety Electronics Associations (IFATSEA). “One good example I can refer to is ASEAN Single Aviation Market, which is an APAC effort like the European Union’s Single European Sky initiative with both aiming to harmonize regulations and liberalize the airspace.”
The ASEAN Single Aviation Market (ASAM) initiative, endorsed by the 13th ASEAN Summit, is clearly an effort tailored towards further strengthening the hand of the Asia Pacific (APAC) region in relation to the growing opportunities in the aviation realm as well as the region’s global alignment objectives. The initiative integrates the APAC region’s single aviation market objectives in respect of air services liberalisation, aviation security, aviation safety, airline ownership and control, competition laws, airport user charges, tariffs, consumer protection, and air traffic management (ATM). It is also an embodiment of the ASEAN Open Skies policy, which incorporates a number of frameworks, including the ASEAN Multilateral Agreement on the Full Liberalisation of Passenger Air Services (MAFLPAS), the ASEAN Multilateral Agreement on the Full Liberalisation of Air Freight Services (MAFLAFS), and the ASEAN Multilateral Agreement on Air Services (MAAS).
The APAC region’s leaning towards a global alignment of policies and operations is not restricted to the forging of regional partnerships but traverses the realms of infrastructure and operational concepts.
“Similarly, the PBN and FRA concepts are being adopted in APAC as well with a global push towards creating seamless airspace across borders,” Balasubramanian adds. “The use of smart technologies, such as automated baggage handling and biometric screening, is becoming a widespread feature of the global ecosystem. The growth of low-cost carriers (LCCs) in the APAC is very much comparable with the growth of LCCs in Europe and the United States.”
CHANGING TERRAINS
As is the case with virtually all regions of the world, APAC is currently witnessing dynamic changes in the workings of the region’s aviation industry on all levels.
“From the ANSP point of view, the dynamic changes I see include the adoption and implementation of space-based ADS-B as well as the increasing deployment of remote and digital tower technologies,” says Balasubramanian. “Countries are pioneering the use of Artificial Intelligence (AI) in air traffic management automation systems that can predict congestion and reroute traffic in real-time to optimize airspace usage. The region is also progressively transitioning to Performance-Based Navigation (PBN) and the concept of Free Route Airspace (FRA).”
The changes being witnessed don’t just appear to be limited to the air navigation service provision cum air traffic management terrains but extend far beyond airport operations and facilitation. According to Balasubramanian: “When we look at airport operations, I can list a few points. With the rapid growth in passenger numbers, many airports in the Asia-Pacific region are undergoing significant expansion projects to increase capacity. These include building new terminals, expanding existing ones, and constructing additional runways. Airport expansion projects are increasingly incorporating sustainable practices, such as green building standards, energy-efficient designs, and measures to minimize environmental impact. There is also the transition to electric ground support equipment (GSE) and vehicles to reduce emissions from airport operations. Implementation of facial recognition technology for seamless passenger identification at check-in, security checkpoints, and boarding gates also constitute another change aspects.”
“One can also mention the deployment of automated self-service bag drop systems to streamline the baggage check-in process. Another area of change involves the integration of Internet of Things or IoT devices throughout the airport to have smart lighting and remote monitoring and management of different systems,” Balasubramanian adds.
A VIBRANT REGION
The aviation industry in the APAC region has, no doubt, recorded tremendous growth over the past few years. These upbeat developments appear to stand out in some APAC countries that have come to be known for their vibrancy in virtually all the ramifications of aviation operations.
“In the Asia-Pacific region, several countries stand out as centers of action in terms of infrastructure, regulations, and operations, reflecting significant advancements and leadership in the aviation sector,” says Senthilvel Balasubramanian. “China, Singapore, Australia, Japan and India can be highlighted in some key areas. China leads in large-scale infrastructure projects. Singapore excels in smart airport initiatives. Australia leads in remote tower technology. Japan leads in advanced airport operations, while India is focusing on airport development for the purpose of accommodating the growth of regional connectivity with low-cost carriers.”
But, when it comes to the ‘Effective Implementation’ (EI) scores for these front runner APAC countries under the International Civil Aviation Organization’s (ICAO) Universal Safety Oversight Audit Programme (USOAP) in respect of the various categories from legislation to aerodrome, the clear leader is Singapore. Juxtaposed against the Global Average of 77.27, 71.39, 73.32, 71.08, 83.24, 54.16, 65.12, and 63.07 percentage points respectively across the Legislation, Organization, Licensing, Operations, Airworthiness, Accident Investigation, Air Navigation Services, and Aerodrome categories, Singapore’s EI scores for the 2022 mission year stand at 98.13% for the Air Navigation Services category and 100% across the Legislation, Organization, Licensing, Operations, Airworthiness, Accident Investigation and Aerodrome categories. Australia (2023 mission year) scored 100, 91.67, 89.74, 80, 91.72, 95.06, 93.69, and 87.29 percentage points across the Legislation, Organization, Licensing, Operations, Airworthiness, Accident Investigation, Air Navigation Services, and Aerodrome categories respectively compared to India’s 2022 mission year records of 100, 72.73, 84.71, 94.02, 97.06, 64.56, 72.73, and 92.68 percentage points. China (2021 mission year) recorded EI scores of 80.95, 100, 98.55, 85.15, 87.73, 65.28, 65.12, and 88.19 percentage points across the Legislation, Organization, Licensing, Operations, Airworthiness, Accident Investigation, Air Navigation Services, and Aerodrome categories respectively as against Japan’s 2010 mission year scores of 90.48, 88.89, 84.06, 88, 96, 86.76, 82.08, and 92.24 percentage points across the same categories respectively.
China is the APAC front runner when it comes to the domestic air passenger market. According to the IATA’s Air Passenger Market Analysis (June 2024), China triumphed over both India and Japan with 11.2 percentage points and 5.5% RPK (Revenue Passenger-Kilometer) growth year-on-year as against India’s 1.8% share and 5.2% RPK growth and Japan’s 1.1% market share and -0.2% RPK growth.
Talking about the air freight arena, the International Air Transport Association (IATA), in its Air Cargo Market Analysis for June 2024, reported a 15.6% increase in international air cargo volumes compared to June 2023, with the Asia Pacific region recording the highest share of 33.3% in terms of total air cargo market year-on-year and closely followed by North America with 26.9% share and Europe with 21.4% share. In terms of international cargo market year-on-year, Asia Pacific-registered airlines represent the highest with 29.8%. They also represent the highest annual growth rate in terms of international cargo (measured in CTK) with 18.5% growth rate year-on-year.
In terms of total air cargo market (measured in CTK), the IATA Analysis shows Asia Pacific recording the highest showing as at June 2024 with 17 percentage points year-on-year. With respect to the 14.1% demand increase year-on-year experienced by the airline industry in June 2024, the Analysis also credited carriers from Asia Pacific with contributing the highest share of 40%, followed by European carriers with a 24% contribution.
Talking about the total air passenger market, IATA’s Air Passenger Market Analysis (June 2024) reported a 9.1% growth year-on-year for industry total RPK in June 2024 as against 8.5% growth in Available Seat-Kilometer (ASK). Regarding the total market outlook for the period, the APAC region posted the highest percentage point of 31.7, followed by the European region with 27.1%, albeit Europe performed better than APAC in terms of international air passenger market with 23.6 percentage points as against APAC’s 14.7%. In relation to the global air transport outlook, the APAC region, according to IATA’s Global Outlook for Air Transport (June 2024), accounted for the highest percentage change of 17% in passenger traffic (measured in RPK) and the highest percentage change of 14% in passenger capacity (measured in ASK) compared to year 2023. The IATA report identified the growth in the domestic markets of China, Japan and Australia as responsible for the RPK growth seen.
INDIA: SETTING THE PACE
India is making efforts on all levels to cement its aspirations in relation to becoming APAC’s aviation hub.
“The growth in air traffic, driven by economic development and the rise of low-cost carriers (LCCs), has led to increased demand for efficient air traffic management. India is working on enhancing its airspace capacity through modernization and expansion projects,” Balasubramanian explains. “India is actively modernizing its CNS/ATM systems, focusing on advanced technologies to improve airspace management and operational efficiency. The country is investing in surveillance systems, satellite-based navigation, and communication infrastructure to enhance airspace management and improve efficiency.”
“GAGAN (GPS Aided Geo Augmented Navigation) system, developed by India, is a regional satellite-based augmentation system that enhances the accuracy and reliability of GPS navigation for aviation in the region. India’s Regional Connectivity Scheme (UDAN) aims to enhance regional connectivity by making air travel more affordable and accessible, thus contributing to overall operational efficiency,” Balasubramanian adds.
India’s developmental efforts are notably multi-dimensional, according to Balasubramanian, targeting various aspects of aviation operations from personnel training to massive upgrade of infrastructure.
“India is investing in the training and certification or licensing of air traffic controllers, and ATSEP to ensure high safety standards. India has also successfully developed specialized maintenance units across the country for module and component level servicing of CNS equipment to ensure operational- and cost-efficiency,” Balasubramanian observes. “Enhanced security measures are in place at Indian airports, including advanced screening technologies, biometric systems, and strict access controls. India is also working on improving cybersecurity measures to protect aviation infrastructure from cyber threats.”
AN EYE ON OPERATIONAL EFFICIENCY
Industry reports have been reporting upbeat developments in terms of operational efficiency. For example, the newly-launched SITA Baggage IT Insights 2024 reports an improvement in the air transport industry’s baggage mishandling rate in spite of the continuing spike in passenger traffic. According to the SITA report, the number of mishandled bags fell from 7.6 to 6.9 per 1,000 passengers in 2023, representing a 63% drop in mishandling rate from 2007 to 2023 and underscoring the positive impact of digitalisaion technology on the baggage handling process.
The SITA Baggage IT Insights report pegs the long term baggage mishandling rate in the APAC region at 3.1 per 1,000 bags in 2007 and 3.0 in 2023, representing, according to the report, the best rate globally in terms of mishandled baggage. Comparatively, the report shows that the European region experienced the biggest long-term drop globally in baggage mishandling rate from 16.6 per 1,000 bags in 2007 to 10.6 in 2023.
LOOKING AHEAD
Thanks to the growing digitalisation, automation and virtualisation of operations in the global aviation ecosystem, opportunities are growing in all sectors of the industry, requiring industry stakeholders to take concrete steps to up their games while leveraging the increasing affordances of technological innovations. The APAC region, from all indications, appears upbeat about cashing in on these growing opportunities. ◙
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