‘Congestion to affect 88% of Asian airports by 2040’

MANILA, Philippines — Airports in Asia-Pacific may face congestion by 2040, prompting a need to decide on what next gateways to build, the International Air Transport Association (IATA) said.

In an analysis, IATA regional vice president for Asia-Pacific Sheldon Hee said the region is faced with four challenges in sustaining its demand momentum.

Asia-Pacific is on track to welcome as many as four billion passengers by 2044, which is about 2.4 billion more than current levels and roughly 41 percent of global growth.

First, Hee said the region might struggle to accommodate more passengers when 88 percent of its airports would be congested by 2040. He noted ongoing efforts to build larger gateways, such as the P735.63-billion New Manila International Airport, but the region needs more for the future.

To date, IATA estimates that Asia-Pacific is building at least 90 new airports worth over $1 trillion. However, he said this pipeline covers largely primary airports, while the region needs secondary gateways as well.

“Getting that balance right is essential to avoid both underinvestment and overcapacity,” he said.

Another concern in the region, Hee said, is taxation, pointing out that public-private partnerships (PPPs) for airports have to work for all stakeholders — the operator, passengers and airlines.

The P170.6-billion PPP of the Ninoy Aquino International Airport aims to expand capacity to 62 million guests per year, but entailed hiking passenger services charges by up to 95 percent.

“Public-private partnerships can also create high return expectations. When those returns do not materialize, airlines and passengers often absorb the impact through higher charges,” Hee said.

Similar to other regions, Hee said Asia-Pacific is also faced with taxation issues. Airlines under IATA have been demanding governments to refrain from introducing travel taxes that add to passenger costs, weakening the tourism profile of a destination.

Hee reminded Asia-Pacific regulators that the aviation industry has a four times multiplier in the supply chain, so for every $1 in value generated, $3.7 is created in other sectors.

Finally, Hee said the region is expected to produce seven million tons of sustainable aviation fuel by 2030, but policies have to be changed to support further expansion.