Sustain Aviation Growth Under Air Transport Economic Regulations Ebtesam Al Shamlan Air Transport Director Ministry of Transport and Telecommunications 2nd AIRPORTS ARABIA CONFERENCE 10-11 OCTOBER 2017
INTRODUCTION
AIR TRANSPORT ECONOMIC REGULATIONS
ECONOMIC BENEFITS TRAVELING PUBLIC AVIATION INDUSTRY
AIR CONNECTIVITY AIR CONNECTIVITY NEW AIR SERVICE )LOWER FARES( TRAFFIC GROWTH ECONOMIC GROWTH JOB GROWTH CONSUMER CHOICE JOB CREATION AIR CONNECTIVITY BENEFITS EXPORT INDUSTRIES INVESTMENTS TOURISM
WORLD WIDE FACTS AND FIGURES OVERVIEW
EVERYDAY: 9.8 MILLION PASSENGERS 104,000 FLIGHTS Daily international long haul flight generates 840 JOBS US$ 22 MILLIONS PAID IN SALARIES US$ 17.5 BILLIONS WORTH OF GOODS CARRIED JOB GROWTH Source: ATAG / IATA
62.7 MILLION 62.7 Million Jobs supported by Aviation Worldwide DIRECT JOBS 450,000 Airport Operators (Work for the airport operator) 5.5 Million other on-airport (retail, car rental, government agencies such as customs and immigration, freight forwarders and some catering) TOURISM CATALYTIC 36.3 MILLION 5.2 MILLION INDUCED 2.7 Million Airlines (flight and cabin crew, executives, ground services, check-in, training, maintenance staff) 1.1 Million Civil aerospace (engineers and designers of civil aircraft, engines and components) INDIRECT 11.2 MILLION 9.9 MILLION AVIATION DIRECT 220,000 Air navigation service providers (air traffic controllers, executives) Source: ATAG
$2.7 TRILLION $ 2.7 Trillion Aviation s global economic impact TOURISM CATALYTIC $892.4 BILLION 3.5% of global GDP supported by aviation INDUCED 54 % of international tourists travel by air INDIRECT $355 BILLION $761.4 BILLION AVIATION DIRECT $664.4 BILLION Source: ATAG
52,964 Routes served globally. 3.6 Billion Passengers carried by airlines. 34.8 Million Scheduled and non scheduled flights worldwide $6.4 Trillion value of cargo handled by air 51.2 Million tones of freight handled Source: ATAG
REGIONAL PASSENGERS MARKET SHARE ASIA-PACIFIC 8% 5% 3% EUROPE 33% NORTH AMERICA MIDDLE EAST 25% AFRICA LATIN AMERICAN & CARIBBEAN 26% Source: ATAG
1,402 Commercial Airlines 26,065 Commercial aircraft in service 173 Air Navigation service providers 3,883 Airports with scheduled commercial flights (there are 41,788 airfields in the world including military and general aviation) Source: ATAG
ENVIRONMENTAL PROGRESS AIRCRAFT TRAIN COACH CAR 80% 40% 60% 30% MODES OCUPANCY Source: ATAG
739 Million Tonnes of carbon dioxide (CO2) emitted by airlines $226 Billion Amount the world s airlines paid for fuel 294 Billion Liters of jet fuel used by commercial operators Fuel efficiency will be improved by an average of 1.5% per annum between 2009 and 2020 Aviation carbon emissions will reduce by 50% by 2050 New technology Efficient operations Improved infrastructures Global market based measure to fill the remaining emissions gap. Source: ATAG
AVIATION MULTIPLIER EFFECT EMPLOYMENT MULTIPLIER 1 job creates 6 other jobs INCOME MULTIPLIER US $1 invested results in US$3.25 benefit to economy AIR TRAFFIC MULTIPLIER 1% increase in GDP lead to 2% increase in air traffic Source: IATA
AFRICA 5.4% ASIA-PACIFIC.. 5.1% EUROPE 3.6% 2014 : 3.6 Billion 2034 : 5.8 Billion PROJECTED AVERAGE ANNUAL GROWTH FOR INTERNATIONAL TRAFFIC BY REGION 2014-2034- LATIN AMERICA & CARIBBEAN 4.7% MIDDLE EAST.. 6.0% NORTH AMERICA.. 2.7% APEC. 3.9% EUROPEAN UNION. 3.6% SMALL ISLANDS STATES. 4.9% DEVELOPING COUNTRIES.. 5.0% OECD. 3.5% WORLD.. 4.3% Source: ATAG
MIDDLE EAST OVERALL AVIATION INDUSTRY OVERVIEW
FACTS AND FIGURES OVERVIEW 2.4 Million Jobs are supported in the Middle East by Air Transport $157.2 Billion in GDP contributed by aviation 206.1 Million Passengers in 2016 1,009,133 Flights 118 Commercial Airports 59 Airlines 1,210 Aircrafts in service Source: ATAG
TOTAL JOBS AND GDP GENERATED BY AIR TRANSPORT IN MIDDLE EAST (2014) JOBS TOTAL 2.4 MILLION GDP TOTAL $157.2 BILLION 5.2% 1,200,000 TOURIST CATALYTIC $ 59.7 bn 225,000 INDUCED $ 19.2 bn 472,000 INDIRECT $ 41.5 bn 427,000 AVIATION DIRECT $ 36.8 bn Middle East Share of Global Passenger Traffic Source: ATAG
MIDDLE EAST IS THE FASTEST GROWING REGION IN THE WORLD DEMAND IS INCREASING M.E. employment contributes to 4% of total global aviation Air Transport GDP in M.E. contributes 6% of total global GDP Average annual passengers growth rate is 6% Average load factor 78% Intra-Middle East route average growth 11.4% Source: ATAG
KINGDOM OF BAHRAIN OVERALL AVIATION INDUSTRY OVERVIEW
TRANSPORT AND COMMUNICATION SECTOR CONTRIBUTION TO TOTAL BAHRAIN GDP Source: CIO
AIR SERVICES AGREEMENTS 95 EASTERN & SOUTHERN AFRICA 15 EUROPEAN & NORTH ATLANTIC 37 MIDDLE EAST 15 NORTH AMERICA & CENTRAL AMERICAN 3 SOUTH AMERICA 2 WESTERN & CENTRAL AFRICA 2 ASIA 21 Source: BCAA
KINGDOM OF BAHRAIN ASA AGREEMENTS NUMBER OF OPEN SKIES AGREEMENTS 51 NUMBER OF RESTRICTED AGREEMENTS 43 Source: BCAA
Source: BCAA 40 AIRLINES 51 DESTINATIONS 280 L & D FLIGHTS PER DAY 7,700 L & D FLIGHTS PER MONTH
BAHRAIN INTERNATIONAL AIRPORT TRIP SURVEY GENDER O & D CONNECTING VS 41% 59% AGE GROUP REASON OF TRAVEL CLASS OF TRAVEL LEISURE 30% 125 22-25 6% VISITING 29% 100 26-34 31% WORK/JOB 25% 75 35-44 46% BUSINESS 11% 50 45-54 12% SCHOOL 1% 25 55-64 MORE THAN 65 3% 0% MEDICAL OTHERS 1% 3% 0 FIRST/BUSINESS ECONOMY CLASS Source: NIELSEN
PASSENGERS MOVEMENTS 2008-2016 Source: BCAA
PASSENGERS MOVEMENT FORECAST (2017-2025) Source: BCAA
AIRCRAFT MOVEMENTS 2008-2016 Source: BCAA
AIRCRAFT MOVEMENT FORECAST (2017-2025) Source: BCAA
CHALLENGES
CHALLENGES Political instability in the region Secure the necessary resources to optimize economic growth and increase demand of air transport Infrastructure and rapid growth of air transport Shortage of qualified manpower Competition in the region (Airports Airlines)
CONCLUSION
CONCLUSION
RECOMMENDATIONS Sustain air transport economic regulations can foster air transport growth through: Give special consideration to the interest of all parties in air transport industry, including government, air carriers, users, airport operations suppliers, etc. Efficient and economic link among all transport modes Maximize social benefit of air transport Accommodate the differences of economic competitive situation of neighboring states Appropriate training and sufficient staff Consider environment protection Continue updating laws and regulations to cope with the industry
Thank You