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