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World Aviation

WORLD AVIATION Aviation is crucial to world industry but it is an industry that has changed a lot over the years in terms of economic factors. Demand, supply and price are major elements affecting growth. WORLD'S BUSIEST AIRPORTS O'Hare Chicago Heathrow London 66.9 Million 72.3 Million (+0.1%) Charles de Gaulle Paris (+3.4%) 83.7 Million Los Angeles International Forth Worth Dallas (+2.2%) 66.6 Million 60.4 Million (+4.7%) (+3.2%) Beijing 83.7 Million (+2.2%) Haneda Tokyo Hartsfield-Jacson Atlanta 69.0 Million (+2.6%) 94.4 Million Soekarno-Hatta Jakarta Dubai International (-1.13%) 62.1 Million (+3.4%) 66.43 Million (+15.2%) • Passengers are also becoming less sensitive to price WHY? Aviation industry will grow from 731 million passengers expected to reach 1 billion in 2011 to 1.2 billion in 2032. (source: Federal Aviation Administration Annual global air traffic Increasingly lower air travel prices, meaning that the air travel price itself becomes a less important part of the total cost of a journey. passengers by 2024 report 2012-2032) Annual Growth in Global Air Traffic Passenger Demand from 2005-2013 10% 8.8% 8.1% 8% 7.1% 6.1% 6% 5.6% 5.1% 4.6% 4% 2% 1.5% 0% -1.4% -2% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Above graph represents the annual growth in global air traffic passenger demand between 2005 and 2013. *2013 figure is an estimate The global recession has meant that companies may be more reluctant to pay for short haul business class flights, but continue to recognise the value of long haul business class. As Low Cost Carriers (LCCS) saturate the short haul market, they will increasingly rely on longer haul journeys for further growth, which will require a diversification of the fleet. Traditional carriers have begun to unbundle certain features such as seat selection and luggage charges, and have streamlined operating costs by reducing turnaround times LCCS may have to access certain strategic hubs in the future, which will reduce flexibility and raise fixed it will become increasingly difficult for LCCS to fill their seats independently, making them increasingly reliant on agents, which will sap marginal revenues. The longer an airline operates, the more its legacy costs (salaries, pensions etc.) begin to resemble the costs of established traditional carriers, costs. References: https://www.iata.org/whatwedo/Documents/economics/air_travel_demand.pdf http://www.airport-world.com/home/general-news/item/3674-top-10-airports-passenger-traffic-in-2013 http://www.amadeus.com/documents/Thought-leadership-reports/Amadeus-Shaping-the-Future-of-Travel-Macro Trends-Report.pdf http://www.faa.gov/about/office_org/headquarters_offices/apl/aviation_forecasts/aerospace_forecasts/2012-2032/media/Forecast%20Highlights.pdf http://articles.chicagotribune.com/2012-03-08/business/chi-air-travel-to-nearly-double-in-next-20-years-faa-says-20120308_1_air-travel-air-traffic-forecasts SMS www.storetraffic.com storetraffic.com

World Aviation

shared by Patrickthuot on Jun 26
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The Infographic is about world aviation and its increasing traffic. Did you know for example, that by 2024, global air traffic is likely to reach an astounding 1 billion? This and many other interesti...

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