Page 6 - AAA SEPTEMBER - OCTOBER 2022 Online Magazine

COVER STORY

SHOWING

SIGNS

OF LIFE

AVIATION IN THE ASIA PACIFIC IS lessors. The situation has improved consid-
RECOVERING, BUT STILL LAGS BEHIND erably since then, at least when it comes
to domestic markets, much to the relief of
OTHER REGIONS. the industry that is banking on the region to
VIETNAM IS A SHINING EXCEPTION drive its growth over the next two decades.
International travel, which had recovered to
more than 40 per cent in other regions by
 ARUN SIVASANKARAN February this year, remained at a mere 6 per
What a difference a pandemic makes! The Asia Pacific region, cent in the Asia Pacific. During the month,
airlines in the region flew 2.5 million interna-
which was the main driver of aviation growth before Covid-19 tional passengers, or just about 8.4 per cent
hit, is finally showing signs of life but still remains a stumbling of the 30.3 million recorded passengers in
block in the road to recovery of the sector. the same month of 2019. According to pro-

The strong rebound of global air travel, which has led the jections by Airbus and Boeing, air travel in
International Air Transport Association (IATA) to predict a fast- the Asia Pacific region is expected to grow by
er-than-expected recovery and a 2023 return to pre-pandemic an average of 6.5 per cent compared to the
levels, would have looked even more spectacular if the Asia average global growth of 4 per cent.
Pacific did not trail other regions. If there is a silver lining in the slower pace

The slow recovery of Asia Pacific aviation, which is not a reflec- of recovery of air travel in the region, it is
that the region will not feel the impact of the
tion of the level of interest for air travel in the region but a global pilot shortage immediately. According
result of international borders in the region remaining closed to Oliver Wyman, Asia currently has a surplus
longer than in other parts of the world, has wider ramifications of pilots, mainly due to the impacts of pan-
for the industry. Industry experts are worried that if air travel demic-related restrictions but will begin to
in the region stays sluggish for a significant period of time, it see a shortage of pilots toward the end of
will negatively impact new aircraft deliveries and cause a dip the decade. Another region that is currently
in maintenance, repair and overhaul (MRO) spending a well. in surplus is Europe, but the region will have
to deal with a shortage of 19,000 pilots by
Something to Cheer About 2032. While Latin America and Africa are not
expected to face a growing shortage of pilots
During the height of the pandemic, a few carriers in the region during the decade, the situation is already
delayed new aircraft deliveries and also returned planes to dire in North America, which is dealing with

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