Global Aviation Industry Requires $1.8tr To Expand Aviation Infrastructure

The global aviation industry requires $1.8trillion to expand and modernise aviation infrastructure to cater for the anticipated increase in passenger and freight air traffic demand by 2030, a report by Global Investment in Aviation released at the weekend, has shown.

This outlook and other challenges in the investment landscape, will dominate discussions at a summit scheduled for next month at the International Dubai Festival City. The summit, it was learnt, is   an initiative of the United Arab Emirates  General Civil Aviation Authority (GCAA), established to create a leading, safe, secure and sustainable civil aviation system in the country.

The discussions on how to draw investments into  infrastructure modernisation were propelled by a report published by the International Air Transport Authority (IATA), suggesting that  the global aviation will have to cater to over 14 trillion passenger traffic and 466 billion tons of freight traffic by 2034. The projection indicated an increase of 14.5 per cent revenue per kilometre per annum.

The body said growth in global aviation industry will generate at least 99 million jobs and contribute $5.9 trillion in Gross Domestic Product (GDP), about 122 per cent increase from 2014.

However, investigations revealed that the positive outlook in the industry has come with big challenges.

To achieve this growth, large amount of investment must flow to modernise and expand the quality of aviation infrastructure over a long period.

Investments, the report indicated, must focus on passenger’s improvement and freight capacity, generating gains such as reduction in travel time and improvement of service predictability and reliability, and maintaining public confidence that aviation is safe, secure, and environmentally responsible.

Source: The Nation