To capture that boom, Airbus and Boeing are looking to entice more orders from carriers in Mainland China, as well as those in India and Southeast Asia such as SpiceJet Ltd and AirAsia Bhd.
Asia Pacific is estimated to have 3.5 billion air passengers by 2036, according to estimates by the International Air Transport Association (IATA).
This spells a large opportunity for aircraft makers such as Boeing who predicts that carriers will need 16,050 new aircrafts valued at US$2.5 trillion to meet the demand.
To capture that boom, Airbus and Boeing are looking to entice more orders from carriers in Mainland China, as well as those in India and Southeast Asia such as SpiceJet Ltd and AirAsia Bhd.
Overall, airlines in Asia Pacific make up the biggest portion of the order books for both the aircraft makers, reported SCMP.
Yet, competition will remain stiff for full-service carriers in Asia, who are losing passengers to budget operators and carriers based in the Middle East and China. For instance, in Singapore, low-cost carriers dominate over half of the market.
This has prompted companies like Cathay Pacific and Singapore Air to review business plans in the light of depressed passenger yields, a key metric of profitability.
While plans for airport expansion have yet to match the growth in aviation, airports have been investing to expand capacity.
Over US$1 trillion is expected to be spent on airport expansions by 2069, with about half due to be spent in Asia, according to Sydney-based CAPA Centre for Aviation.
In Beijing, a new US$12.9 billion airport is due to open in 2019 and is expected to turn China’s capital into one of the world’s biggest aviation hubs.
Bangkok’s Suvarnabhumi Airport will be undergoing a 117 billion baht (US$3.7 billion) renovation through 2021, including a third runway, while South Korea’s Incheon International Airport has spent 5 trillion won (US$4.6 billion) on a second terminal.