The global airline market comprises air transport service providers of passenger and cargo. Industry services are used by individuals and business, — international, domestic, and regional—and governments around the world. The robust economic growths in China, India and other Southeast Asian countries have led to strong domestic airline market growth in these respective countries.
- In 2019, North America accounted for the highest market share across all the regions in the world.
- Revenues from Asia-Pacific are projected to grow with a high growth rate, during the forecast period (2020-2025).
- The world’s busiest airports are Hartsfield–Jackson Atlanta International Airport (IATA: ATL), handling around 110 million passengers annually, and Hong Kong International Airport (IATA: HKG), where about 4.7 million tons of freight is loaded and unloaded per year.
- USA has about a third of all airports in the world - more than any other country: around 15,000 airports of all sizes, out of which more than 5,000 have paved runways.
FAlthough FDI is allowed through automatic route in most of the sectors, certain areas such as defence, telecom, media, pharmaceuticals and insurance, government approval is required for foreign investors. Investment by foreign airlines in domestic airlines will be limited to 49% of paid-up capital.
- 100% FDI permitted in Non-scheduled air transport services under the automatic route.
- 100% FDI permitted in helicopter services and seaplanes under the automatic route.
- $2.7BN FDI in Air transport (including air freight) during April 2000 – March 2020.
- AAI to Spend 19K cr on Airports Upgrade
In 2019, North America accounted for the highest market share across all the regions in the world. The revenues from the region are predominantly due to the United States, which has the highest aircraft fleet in the world. North America was followed closely by Asia-Pacific, in terms of revenue share, in 2019. Revenues from Asia-Pacific are projected to grow with a high growth rate, during the forecast period, as the emerging economies in the region, like India and China, are experiencing a huge surge in their respective aviation markets, due to an increased demand for air travel in the countries.
- Airlines are incorporating more technologies into their operations.
- Airlines and airports are already using Artificial Intelligence (AI) in various forms. According to SITA, 85% of the airlines are planning to implement AI virtual agents and chatbots by 2021, whereas 66% of them plan to implement AI in predictive analytics as well.
- Biometrics and RFID for self-check-in, passport control, baggage tracking and security is being more of a norm.
- It’s also good to see airlines seriously looking into hot new technologies such as ‘blockchain’ and even considering ways that it could be incorporated to their benefit.