Asian Leaders Summit 2014
Leading up to the start of the Singapore Airshow the annual pre-event Asian Leaders Summit kicked off on 10 February with a focus on current aviation industry trends and regulations.
March 6, 2014
Leading up to the start of the Singapore Airshow the annual pre-event Asian Leaders Summit kicked off on 10 February with a focus on current aviation industry trends and regulations. This focus was reflected in the Singapore Transport Minister’s speech when he pointed out two trends that will reshape the aviation sector in the coming years: The growth of low-cost carriers and the rise of new air hubs.
According to Minister Lui Tuck Yew, these two trends will shake up the business and operating models of traditional and incumbent air hubs. He said that as compared to 10 years ago where there were hardly any low cost carriers in Asia, they now make up nearly 20 per cent of the aviation market.
On the second trend, which is rise of new air hubs, he mentioned that: “Air navigation providers will have to manage more congested skies, with more frequent take-offs and landings. This will see utilisation rates for aircraft rise.”
The pressure will be on governments who aspire to be air hubs and sufficient capacity on the ground is essential besides having reliable navigation systems to meet growing air traffic.
Another point that was raised was how governments must play a firm regulatory role in ensuring aviation remains safe, with Lui stressing that authorities must guard against over-regulation in other areas. He said regulators, “should instead strive to create space for the airlines and airports to respond to market changes and opportunities. Instead of looking just at the interests of its own airlines in its aviation policy, governments would do better to consider the wider benefits to the economy and society of a liberal air services regime.”