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Director general, Stefano Baronci, reflects on a busy and productive few months for ACI AsiaPacific & Middle East and looks forward to two key events in the second half of the year.

As historian and archaeologist, Josephine Quinn, stated in her recent book, “It is connections, not civilisations, that drive historical changes”.

This perspective resonates deeply with my belief that migration, mobility, and the blending of cultures are fundamental to the essence of aviation. Air connectivity stands to be a fundamental tool in facilitating these transformations.

The ACI Asia-Pacific & Middle East Air Connectivity Index 2023, developed in collaboration with PWC, goes beyond merely assessing direct and indirect connectivity was released recently. It evaluates the market size, the economic value of these connections, and the quality of the links from a consumer’s perspective, emphasising the variety of choices available to passengers traveling from point A to point B.

The 2023 ranking, which analyses a sample of 300 airports across Asia-Pacific and the Middle East – representing approximately 93% of total traffic – reveals promising signs of recovery in the region.

However, it is important to note that most of these airports have yet to regain their pre-pandemic levels of connectivity. Only 28% of the 300 airports have surpassed their 2019 connectivity levels. Nevertheless, projections indicate a positive outlook, with passenger volume in the Asia-Pacific region expected to achieve full recovery by 2024.

This recovery underscores the resilience and critical importance of our sector in connecting people, economies, and cultures, driving forward the process of global transformation and integration.

Overall, International city pairs in the Region decreased in 2023 by -1.9% vs. 2019 on average, in contrary to domestic city pairs which increased by 17%, especially in China and India.

The top 20 airports ranking by airport connectivity in 2023 show that Dubai Airport continues to occupy the top rank followed by Tokyo Haneda Airport. Despite the late reopening of its international borders in early 2023, three Chinese airports, Guangzhou Baiyun (CAN), Beijing Capital (PEK), and Shanghai Pudong (PVG) are among the top 10.

Overall, the Middle East is closing in on pre-pandemic levels with air connectivity just 5% below the 2019 benchmark. Meanwhile, Asia-Pacific is witnessing substantial strides towards recovery, showing a notable improvement from a 36% decline in connectivity in 2022 to just 13% below 2019 levels in 2023.

A FORWARD-LOOKING OUTLOOK FOR 2024

The first quarter of 2024 has shown promising signs, with airports improving their direct connectivity by an average of 59% compared to the same period in 2023. As we move into the third quarter of 2024, airports in Asia-Pacific and the Middle East are expected to increase seat capacity by an average of 10% compared to the first quarter.

Notably, the highest increase in seat capacity will be direct flights to and from China, signalling a gradual improvement in connectivity for key markets dependent on Chinese traffic.

In the Middle East, cities like Riyadh, Abu Dhabi, and Dubai will be in the spotlight, having added significant capacities to a diverse range of destinations.

ENGAGEMENT, EVENT AND ADVOCACY

The ACI Asia-Pacific & Middle East/ACI World Annual General Assembly, Conference & Exhibition, known as WAGA 2024, held in Riyadh, Kingdom of Saudi Arabia last May, was a tremendous success.

Over the course of three days, we welcomed more than 700 airport leaders and executives from over 70 countries, and over 30 companies showcased their innovative products and solutions.

Additionally, we presented over 20 discussion panels and interviews featuring 50+ renowned speakers. Your involvement was crucial in making this event a success.

ADVOCACY AT ICAO DGCA FOR MIDDLE EAST

At the ICAO Conference of Directors General of Civil Aviation (DGCA) for the Middle East region in Riyadh, Kingdom of Saudi Arabia, we emphasised the critical need for enhancing air connectivity and seamlessly integrating Advanced Air Mobility (AAM) into the current air transportation framework.

The most important output of the Conference, however, is the approval of the Middle East Air Transport Strategic Plan 2025-2040 by ICAO MID and its member states. States are encouraged to reference this Strategic Plan when developing their national plans and to implement the recommendations provided.

This achievement is significant for ACI APAC & MID, as we were appointed by ICAO as the co-rapporteur for the working group tasked with drafting the Plan in 2022.

We contributed comprehensive inputs on air connectivity, taxation and charges, security and facilitation, and environmental considerations, alongside submissions from other stakeholders.

ENGAGEMENT WITH MEMBERS AND INDUSTRY STAKEHOLDERS

Our engagement with the Bureau of Civil Aviation Security (BCAS) in India on promoting One Stop Security (OSS) has been very positive.

The BCAS has expressed interest in conducting OSS trials for domestic operations before expanding to international flights. Our team is already in dialogue with the authorities to learn and implement best practices from countries that have successfully implemented OSS.

We made a historic visit to Laos and the outcome was very positive as we are in the process of welcoming Airports of Laos into the ACI fold and assist with capacity building across critical domains. We also had a successful dialogue with the Department of Civil Aviation of Laos (DCAL). This visit marks a significant step in ensuring that airports in the region are well-positioned for future growth and development.

We also had a productive meeting with Civil Aviation Authority of Vietnam (CAAV) and the Airports Corporation of Vietnam (ACV) in Hanoi. It provided the groundwork for a robust cooperation between ACI APAC & MID, CAAV, and ACV.

A major focus of our collaboration is to support ACV airports in the Airport Carbon Accreditation programme, and assist in setting net zero roadmaps in the future, marking a significant milestone in our collective efforts to combat climate change.

In Ho Chi Minh City, Vietnam, we officially announced the Trinity Forum 2024, that will be hosted by Airports Corporation of Vietnam (ACV) and Imex Pan Pacific Group (IPPG) in partnership with ACI APAC & MID and ACI World on November 5-6 in Ho Chi Minh City.

The event brings together the world’s airports, brands, and concessionaires, alongside their business partners in the travel retail sector for provocative and stimulating conversations. More info can be found here.

Our team visited Japan to explore collaboration opportunities with Japan Airport Terminal Co. Ltd. (Haneda Airport) and JALUX, a subsidiary of Japan Airlines that has aero and non-aero business operations at airports. The visit concluded with hopeful anticipation for closer engagements, paving the way for continued growth and innovation within the airport industry.

In China, our team shared the latest industry development trends at the Guangzhou Aviation Hub High-Quality Development Conference, and promoted that AAM development represents enormous opportunities for airports and accelerates the growth of “low-altitude economy” at the International Smart Airport Development Forum in Shanghai. Our team appreciates the engagements with Chinese aviation leaders.

As we step into the second half of the year, we are now gearing up for various engagements and more importantly our two key events – Airports Innovate (in Rome, Italy, from November 26-28, 2024) and The Trinity Forum 2024 (in Ho Chi Minh City, Vietnam from November 5-6, 2024)