As we emerge from the longest sustained recession in 80 years, the indicators are that the global aviation market has turned a corner, with traffic returning, fuel prices falling, and the impact of new technology and business models aiding a return to profitability. Sector players — airports, airlines, investors — have begun to adapt to the “new normal” brought about by the global financial crisis. The aviation industry worldwide has shown itself to be remarkably resilient.
Consequently airport mega projects are looking like interesting infrastructure investments again.
But as the industry shifts from survival to expansion mode, new issues are emerging: the risk of over-expansion in airline capacity; the difficulties of expanding airport infrastructure and airspace capacity where it is most needed; and the long-term environmental challenges of a rapidly expanding global aviation industry.
So, airport infrastructure investors are adjusting their strategies to ink the best deals that lead to sustainable growth. To do that, they’re deepening their understanding of the aviation sector, including:
What can major players in the aviation industry do to navigate economic cycles and create smoother growth?
Airport deal activity has taken off again in the last few years. What do investors with an eye on the aviation sector need to know to select the best deals?
Air connectivity is key to unlocking a country’s economic growth potential. The International Civil Aviation Organization (ICAO) defines air connectivity as an indicator of a network’s concentration and its ability to move passengers from their origin to their destination seamlessly. Why is it important?
The propensity to fly (number of air trips per capita) strongly determines future demand for air travel. And increased demand means increased need for investment in aviation infrastructure.
Airport infrastructure project setbacks cause major delays, cost overruns and project disputes. There are ways to be better prepared though.
In recent decades, Asia has emerged as the leading region in aviation traffic. However, aviation infrastructure is not keeping pace with this growth. What can they do differently?
Passenger demand for travel is one of the major factors that will impact potential earnings and therefore valuations. But never before has demand been harder to predict.