ACI ASIA-PACIFIC Pulling in the right direction


Passenger traffic across Asia Pacific and the Middle East jumped 9% and 9.4%, respectively, in 2016. Patti Chau, Regional Director, ACI Asia-Pacific tells Luke Barras-Hill how the regions are adapting their aviation agendas in times of global turbulence.


It’s very uncertain at the moment. We’ve not seen a huge impact on Asia Pacific travellers to Europe and the US for the time being. The numbers look good at +9%


and +9.4% in Asia Pacific and the Middle East, respectively, and globally it’s +5.5%, so things are positive. Because the UK is outside the


Schengen area, there isn’t much impact on passport control for Asian travellers to the UK and if you look at the volatility of the currencies, I think British travellers are not a huge group travelling to the Asia Pacific region. They are not dependent like the


Patti Chau, Regional Director, ACI Asia-Pacific says airport capacity building, security and safety remain top priorities for the association.


H


ow has the election of a new US president, geopolitical volatility,


currency fluctuations and declining passenger traffic in some regions affected aviation development in Asia Pacific? Protectionism, as we’ve seen it, is worrying for our airports and some of the countries that are very trade dependent. I think this will drive emerging


economies in Asia Pacific to be more dependent on larger economies, such as China, to stimulate intra- regional trade. The Trans-Pacific partnership is


now cancelled – the US was driving that – so China will probably pick that up and start to form its own group.


“What Asian countries are more concerned about is the depreciating RMB.”


Patti Chau, Regional Director, ACI Asia-Pacific


40 TRBUSINESS


Chinese, so the spending power due to the diminishing pound is minimal to the travel and retail markets in Asia Pacific. On a positive note, the lower


pound is obviously benefiting travellers. What Asian countries are more concerned about is the depreciating RMB. That will diminish the purchasing


power of the Chinese traveller and will ultimately effect spending at airports in Europe and Asia Pacific. Again, the rise in interest rates will impact economies in Asia and the travel market as well.


Airlines in China are pursuing expansion agendas, but at the same time there is competition between low cost and full service carriers. How do you see this dynamic playing out this year? The government is stimulating Chinese carriers to expand internationally and I think this growth will continue. The LCC market in China is not mature like South East Asia. Where it is really picking up right


now is Japan and Korea; we haven’t seen that explosion in China just yet in terms of LCCs. There is a lot


of room to grow for both LCCs and FSCs – the growth trend is quite rosy for this year.


India is showing real promise, including at airports in Chennai, Bangalore and Calcutta. Where do you see the potential for the market this year, particularly with the emerging middle class passenger? In India it’s been quite a journey. Last year, the government introduced the National Civil Aviation Policy (NCAP) to improve connectivity and productivity. That is the country’s first aviation plan and that is something to be applauded. The government is pushing a


seamless package for airlines in India and they will build more regional airports to tap into the domestic market. Last year, the majority of the


growth was actually from the domestic market and many airports grew in double-digits, some even over 50%. We expect the growth to continue


in 2017. The government will have to build more airports, otherwise infrastructure will be a constraint. There is still huge potential for India with the growing middle class and one of the goals is to be in the top 10 countries in terms of airport passenger volume. India should be one of the


three largest aviation markets in the world. It is not there yet, but certainly catching up.


Airport privatisation remains an on-going discussion. Is that an opportunity or threat in India? The Indian government has recognised that the participation of the private sector is essential for aviation development. Until the NCAP, the Indian regulatory


MAY 2017


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