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Airports, Regulations, Infra Must Evolve Amid Surging ASEAN Aviation Demand - Capt Izham

KUALA LUMPUR, Dec 15 (Bernama) -- Airports, regulations and infrastructure across the region must evolve rapidly to keep pace with surging air travel demand, with ASEAN expected to emerge as the world’s third-largest economy in the next decade, Malaysia Aviation Group (MAG) said.

MAG group managing director Datuk Captain Izham Ismail said the aviation industry is entering a structural shift that will test the readiness of airports, policies and manpower, as Asia-Pacific cements its position as the global centre of air travel growth.

“Asia-Pacific currently accounts for about 32 per cent of global aviation capacity, but this is projected to rise to 48 per cent by 2030, driven largely by new aircraft deliveries and expanded frequencies,” he said. 

Within this, ASEAN’s share is expected to grow from about seven per cent today to between 12 and 15 per cent by the end of the decade.

“With ASEAN expected to become the third-largest economy globally, aviation will be a critical enabler of trade, tourism and connectivity. 

“But, growth on this scale will require airports and supporting infrastructure to change fundamentally,” he said.

He noted that nearly 42,000 new aircraft are expected to enter global service over the coming decades, placing significant pressure on airport capacity, ground handling systems, energy supply, transport links and ancillary infrastructure such as hotels and logistics facilities.

“As airlines grow, airports must also grow, either through expanding existing terminals or building new ones altogether. Infrastructure is no longer just about runways and terminals; it includes ground transport, energy systems and airport readiness for new technologies,” he pointed out.

Captain Izham also said regulatory frameworks must keep pace with rapid technological change, particularly in areas such as artificial intelligence (AI), digitalisation and sustainability.

Energy transition, he said, is another critical pillar, with sustainable aviation fuel (SAF), electrification and hydrogen expected to play a central role in the industry’s push towards net-zero emissions by 2050.

Against this backdrop, he said MAG must remain disciplined and steadfast in executing its long-term business strategy to remain competitive amid intensifying regional and global competition.

“While global passenger traffic is forecast to grow at about 3.8 per cent annually over the next decade, Asia-Pacific is expected to outpace the global average with a compound annual growth rate of about 5.3 per cent, adding an estimated 2.7 billion new passengers,” he said. 

However, he cautioned that the growth outlook comes with mounting risks, including aircraft delivery backlogs, supply chain disruptions, manpower shortages and geopolitical uncertainties.

Industry-wide, more than 17,000 aircraft remain on order globally, with delivery delays expected to persist for up to a decade, while Asia-Pacific alone will require an estimated 400,000 new pilots, one million cabin crew and 600,000 engineers in the coming years.

“These constraints mean airlines must plan conservatively, invest strategically and stay ahead of the curve. For MAG, remaining resilient and focused is not optional; it is essential if we are to compete effectively in a rapidly transforming aviation landscape,” he said.

He noted that the coming decade represents the early stages of a broader reinvention of aviation, with structural changes expected to reshape the industry by 2040.

“What we are witnessing today is the beginning of a new era. Those who adapt early in infrastructure, regulation, technology and energy will define the future of aviation,” he added.

-- BERNAMA