"What is clear is that Chinese and Indian trade and traffic with the rest of Asia will shape the future of aviation in the region," Thai Prime Minister Surayud Chulanont said in his keynote speech at the Asia Forum 2007: The Future of Aviation held in Bangkok last week. The event was organised by Asia News Network, Star Alliance and Thai Airways International.

Chulanont noted as average income in the region increases and more people travel within the region, the intra-Asia air cargo is forecasted to expand by 8.4 percent annually through 2021.

The Asia Forum was attended by about 300 executives from the aviation, travel and hospitality industries to discuss trends and challenges ahead for the industry in the region.

Four Challenges
Jaan Albrecht, CEO of Star Alliance, said there are four important areas in which airlines shape the future of the aviation industry: competition, technology, environment and security.

"The Asian market has dramatically changed as a positive effect of liberalisation, which has encouraged more competition.This means that sufficient infrastructure has to grow alongside as the industry grows," Albrecht said.

China
In the region, China is seen as the largest emerging market with an annual growth rate of 14 percent for 2001-2005. In 2005 alone, China's aviation industry grew by 35 percent.

Zhang Hexiang, head of the Institute of Economy of Management Research of the Aviation Industry Development Research Centre of China, said the construction of airports is also growing at a fast rate with 142 airports constructed in 2005; she said there will be 200 airports in China that would have been constructed by 2010 and 250 by 2020.

India
India, like China, is also facing similar challenges in growing consumer demand for better infrastructure and more aircrafts in the future.

Pradeep Panicker, head of strategic planning, noted that many of India's airports do not meet international standards. Among the challenges he cited are lack of investment and ageing infrastructure.

"We still have a long way to go," he said, adding that plans are underway for a high speed rail link from the city centre to the airport by 2010.

Growing Demand
Airbus Group, meanwhile, sees a growing demand for 23,000 new aircraft deliveries in 20 years worldwide with a market value of $2.6 trillion.

Joost van der Heijden, senior airline marketing director of Airbus Group, said the Asia will lead world traffic by 2025.

"Looking specifically at the Asia-Pacific region, we expect traffic growth to remain strong, averaging around 6 per cent per year for the next 20 years," van der Heijden said.

For Boeing's part, Randy Tinseth, the company's vice president for marketing, said airline companies in the Asia-Pacific region will need 8,350 new airplanes valued at $1 trillion in a 20-year period from 2007-2026.