The aviation business is predicted to expand globally over the next four years, with Martynas Grigas, CEO of Avia Management Group Asia – Holding Company, explaining that Asia is a particularly promising market for growth.
International passenger markets will recover significantly in 2023, with Asia Pacific seeing the most pronounced recovery in passenger numbers. Demand for international air travel remains strong, so the future looks generally bright for airlines in Asia. While most of the region's destinations have undergone significant changes, the majority of cities in Asia Pacific are recovering quickly and approaching pre-pandemic flight volumes. Understanding these trends is crucial to taking steps for future growth compared to the region as a whole.
“Countries such as Japan, China, Thailand, India and Indonesia are seen as potential markets with diverse predictions for the development of their aviation industries. This growth will also have an impact on neighbouring countries,” he said.
For example, in Southeast Asia, Thailand is working with both the government and private sector to realise its Thailand Vision 2030, upgrading six of its major airports and increasing international capacity, to become a regional hub for the Asia-Pacific region.
“Indonesia is also in line with this mission to increase international and domestic visitor numbers during the post-pandemic recovery and tourism development,” Grigas noted. Despite various challenges in 2023, Indonesia achieved an 89% recovery rate in the aviation sector, according to data from the Indonesian Aviation Association (INACA).
“One of the common needs that must be addressed immediately is the ACMI (Aircraft Crew Maintenance Insurance) business. Looking at the situation in Indonesia and neighboring countries where passenger numbers are continuously on the rise, aircraft availability is one of the main challenges, slowing down the recovery rate,” Grigas added.
Avia Management Group Asia Holdings aims to build an aviation ecosystem network around its ACMI business to provide customers with easier access to quality aviation services in order to meet the growing need for aviation services in the Asia Pacific region, where demand is continuously increasing.
Avia Management Group Asia Holding Company manages BBN Airlines Indonesia, Thai SmartLynx and Avion Express Philippines, all of which specialize in providing ACMI business services. These AMGA (Avia Management Group Asia) affiliates are focused on serving the APAC market with a one-stop solution for aviation services.
As Grigas explains, the ACMI business model is particularly well-suited to support the Asia Pacific needs of the aviation industry. With experience in this business model, Avia Management Group Asia is seeking to be involved in the industry's evolution. “Business outlooks in Asia Pacific to 2028 give us optimism for the ACMI business model that we are currently focused on,” says Grigas.
BBN Airlines Indonesia, an AMGA subsidiary in Asia Pacific, is currently working on entering the Indian market. India is also on a mission to be among the top three domestic aviation markets in the world. “India is relentlessly pursuing this goal, increasing everything from the number of airports and airlines to the number of passenger aircraft, in support of India's mission to develop its aviation industry over the next 20 years,” Grigas said.
“The Asia-Pacific region's positive business trends naturally come with several global challenges, including geopolitical turmoil, logistical issues stemming from conflicts in Ukraine and the Middle East, fluctuating inflation and growing shortages of spare parts,” Grigas noted.
According to Grigas, these issues should be of concern to all aviation stakeholders in the Asia-Pacific region. But there is also a lot of positive to be seen. “With a supportive business ecosystem, infrastructure between countries, and a balance between supply and demand, Asia-Pacific countries' goals are achievable,” he concludes.
