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FUTURE OUTLOOK OF PASSENGER AIR TRANSPORT
IN OPEN POLICY IN THE YEAR 2015
PresenterAmidee AzizanKPMC 102217
INTRODUCTION
To understand where international air passenger travel may be heading in the future there are three sets of forces that should be investigated
First -what are the factors which have driven the growth in air travel
Second- set of factors to consider arises from a possible change in world economies
Third-set of influences to be considered such as events, policies and economic and political environment
Also what new forces will have an impact on international air travel?
Factors Several factor to be consider when
forecasting passenger growth are: air travel forecasting models – indicates
passenger growth trade growth and foreign direct investment-
(air cargo business) policy changes-international aviation
agreements business models of carriers-hub and spoke expansion of alliances-joint venture aircraft fleets-aircraft type possible change in world economies - pattern THIS DRIVEN THE GROWTH IN AIR TRAVEL IN THE PAST AND WHAT WILL THIS FACTOR
LOOK LIKE IN THE FUTURE
Important of Airlines' strategy on Air Cargo Business for the passenger growth and its Open Policy
Air cargo - a backbone of modern economy Air cargo provides reliable and fast logistics
service for high-value and perishable export goods in the global
Air cargo connects distant nations into global supply chain network of materials and goods
Facilitates competitive advantage in a nation’s trade and economy
Economic development in the world
Even the countries with less competitive carriers want to open their air cargo
market
Strategies of Airlines on Air Cargo create growth on passenger in open policy
Flexible network design, routing, crew/fleet scheduling Hub and spoke logistics network Night departure/arrival with lower landing
charges
Air Cargo liberalization separately from passenger liberalization-Recommended
Benefits of Air Cargo Liberalization create passenger growth
National economy Benefits efficient on transportation of export goods-
Increasing competition with more carriers, more supply and lower fare
Consumer benefits routes, fare
Airlines benefits traffic increase forming efficient network establishing hub airport competitive power in the long run