SINGAPORE – With air traffic in Asia-Pacific set to double over the next 20 years, passengers and airlines will need to help cover the cost of infrastructural improvements that are required to meet future demand by paying more in airport fees, said the head of a regional industry group.
Mr Baronci sought to downplay the impact that such charges have on air fares, noting that international airport charges in Asia-Pacific and the Middle East have, on the whole, remained steady since the Covid-19 pandemic. “I don’t think that in Singapore... the increase of charges has a huge impact in terms of a decrease in demand.”
Asia-Pacific is also projected by ACI to be the fastest-growing region in terms of passenger traffic. China is expected to overtake the United States as the biggest market by traffic volume in 2042, with Indonesia and Thailand breaking into the top 10. The good news is that airports have started building again, with Mr Baronci pointing to various airport development projects in Asia-Pacific. Examples include the new Western Sydney Airport, which will open in 2026 and Cambodia’s upcoming Techo International Airport, which will start operations from 2025, as well as terminal expansion projects in New Delhi, Bangkok, Seoul, Tokyo and Taipei.
“There are airports that are trying to catch up very fast in terms of infrastructure development, like Hong Kong, which during Covid-19 has built huge infrastructure and is planning to improve the quality significantly.”