Europe and Africa
Key facts about the market
The European market is unique and despite uncertainties has remained strong. Consider these estimates:
- The Association of European Airlines reported that member airlines carried approximately 307 million passengers in 2015, with passenger traffic increasing 4.3 percent compared to 2014.
- Europe’s GDP is estimated to grow by 1.8 percent annually through 2035
- The European aviation market, too, will expand over the next 20 years, and airlines will acquire over 7,500 new airplanes valued at over $1.1 trillion
With increasing air traffic and tighter time schedules, it becomes necessary to control every movement within and around an airport. The usual way to increase capacity is to expand infrastructure. However, since many European airports were constructed during the 1960s and 1970s they are landlocked, making expansion almost impossible. To meet the challenge, European airports need better functionality for more capacity.
With the formation of Single European Sky ATM Research (SESAR) to overhaul the European airspace and air traffic management (ATM), the airports need to constantly explore ways to manage capacity and growth. Currently, the SESAR program includes 25 airports in Europe and their integration potential is far from utilized to full capability.
While infrastructure or runway expansion may seem like an ideal solution, at ADB SAFEGATE we believe the answer lies elsewhere. Airports can do more with what they already have and our integrated airport solutions can help unlock the hidden potential for airport traffic expansion.
Africa is a diverse continent - with 54 countries and over 1,500 languages, it cannot be treated as a homogeneous group. Characterized by vast distances and with the absence of efficient road or rail systems, air transportation is a strong option for freight, business, leisure and tourist travel. Moreover, the growing affluence across the continent has led to greater demand for air travel.
Exciting times await African aviation:
- IATA has forecast 5 percent annual growth over the next 20 years. By 2034, Africa will boast of eight out of the 10 fastest growing aviation markets in the world
- While 2014 saw more than 50 million tourists travelling to Africa, making it one of the world’s most popular regions, the number is expected to increase further in 2017
- Africa has been experiencing a high population growth since the second half of the 20th century, and if current demographic trends continue, the population will hit 1.9 billion by 2050
- Passenger traffic is set to rocket with nearly 300 million passengers estimated to travel to and from African destinations.
The aviation industry has a dynamic role to play in accomplishing sustainable development in Africa and helping Africa “rise”. The challenge is two-fold:
First, many airports on the continent are 40-50 years old with ageing infrastructure. Thus, they are prone to safety lapses, environmental pollution and flight disruptions.
Second, governments across the continent realize airport hubs are windows to the continent and steps must be taken to eliminate bottle necks and fuel growth in the airport sector. Preparing for the boom, they are investing in airport development projects. As of last year, there were at least 40 new airports projects across Africa.