Airports and Aviation

The next 15 years will see a growth of over 4% per annum of global air passenger traffic, meaning that by 2020 circa 7 billion people will use airports globally.

Freight Traffic will see a growth of 5.1% per annum by 2020 and it will have reached 170 million tons. In order to achieve this growth greater airport capacity is essential. The amount being invested into creating increased airport capacity is greater than ever. Investment in infrastructure development is also continuing globally. Emphasis is being placed on the reduction of congestion and the improvement of passenger safety and security, meaning airport technologies is also the focus of added investment.
Civil Engineering and Construction companies will thrive within the modern aviation sector due to the increasing need for further airport facilities and runways coupled with the increasing amount and size of the air traffic which is passing through the world's airports. These construction and engineering companies will benefit from the increased spending on airport infrastructure as well as the infrastructure required to service these airports including transport links.

Many other organisations will benefit from this growth within the aviation sector. It is not only the investment directly within Infrastructure that is rising but it is also the demand for the services and goods that passengers and cargo require which will lead to increased expenditure on facilities such as hotels, restaurants and shops, as well as ground and cargo handling facilities.

Megacities, with populations of over ten million will see the largest increase in finance and investment. These include large connecting cities such as Dubai, Abu Dhabi and Singapore. Most of these megacities are already the economic and political centres of the world.

India and China are set to experience some of the fastest growth in terms of demand for air travel over the next 20 years. This is due to urbanisation, increased recognition on the economic and employment map coupled with the absence of established countrywide road transport.

China has laid out ambitious plans to construct a further 244 airports by 2020. Likewise, the Indian government plans to have approximately 500 airports operational by 2020, this would include the redevelopment of unused airports. The U.A.E is in the midst of an aviation boom that is unlike anything the world has ever seen. Dubai is expected to enter the top 10, in passenger traffic numbers, within the next five years. The sheer scale of the projects that are underway in Dubai and Abu Dhabi are staggering. Dubai International Airport is adding a third terminal and two new concourses at a cost of $4.5bn, enabling the airport to handle up to 70 million passengers annually. Abu Dhabi International Airport is spending $6.8bn on expansions that will enable the airport to handle over 40 million passengers, as well as over 2.5 million tons of cargo per annum. The $10bn Dubai World Central Al Maktoum International Airport will eventually have two mega terminals, six runways and concourses and a capacity to process more than 160 million passengers annually.

The Kingdom of Saudi Arabia has also pledged to invest US$12.3bn to overhaul its airports by 2020. The UK is not exempt from this either. Heathrow will see £5bn invested in a new airport terminal and related Infrastructure to be built by 2020.This is coupled with a forecast overall investment in the airport of £13bn.

The global economy is certainly suffering the worst recession ever experienced by the majority of the world's population alive today, however, it is certain to only have a short term impact on the aviation industry. As is demonstrated by the sheer volume of global investment and development projects which are forecast, the next 20 years will see unprecedented growth and opportunity.