Kuala lumpur: Airports, regulations, and infrastructure across the ASEAN region must undergo significant evolution to meet the rapidly increasing demand for air travel, as ASEAN is projected to become the world's third-largest economy within the next decade, according to Malaysia Aviation Group (MAG).
According to BERNAMA News Agency, MAG Group Managing Director Datuk Captain Izham Ismail highlighted that the aviation industry is experiencing a structural shift that will challenge the readiness of airports, policies, and manpower as the Asia-Pacific region solidifies its role as the global hub for air travel growth. Currently, Asia-Pacific accounts for approximately 32 percent of global aviation capacity, with projections indicating an increase to 48 percent by 2030. This growth will be driven largely by the introduction of new aircraft and expanded flight frequencies.
Within this context, ASEAN's share is expected to increase from about seven percent today to between 12 and 15 percent by the end of the decade. Captain Izham emphasized that as ASEAN is anticipated to become the third-largest global economy, aviation will play a crucial role in facilitating trade, tourism, and connectivity. However, growth on this scale necessitates a fundamental transformation of airports and supporting infrastructure.
He further noted the expectation of nearly 42,000 new aircraft entering global service in the coming decades, which will put significant pressure on airport capacity, ground handling systems, energy supply, transport links, and ancillary infrastructure like hotels and logistics facilities. Captain Izham pointed out that as airlines expand, airports must also grow, either by expanding existing terminals or constructing new ones. Infrastructure today encompasses more than just runways and terminals; it includes ground transport, energy systems, and airport readiness for emerging technologies.
Additionally, Captain Izham outlined the need for regulatory frameworks to keep pace with rapid technological advancements, particularly in areas such as artificial intelligence, digitalization, and sustainability. He identified energy transition as another critical pillar, with sustainable aviation fuel, electrification, and hydrogen expected to play central roles in the industry's pursuit of net-zero emissions by 2050.
Amidst these challenges, Captain Izham stressed the importance of MAG remaining disciplined and steadfast in executing its long-term business strategy to remain competitive amidst intensifying regional and global competition. He noted that while global passenger traffic is forecast to grow at approximately 3.8 percent annually over the next decade, Asia-Pacific is expected to surpass this with a compound annual growth rate of about 5.3 percent, adding an estimated 2.7 billion new passengers.
However, Captain Izham cautioned that this growth outlook comes with increasing risks, including aircraft delivery backlogs, supply chain disruptions, manpower shortages, and geopolitical uncertainties. He noted that industry-wide, more than 17,000 aircraft remain on order globally, with delivery delays expected to persist for up to a decade. Furthermore, Asia-Pacific alone will require an estimated 400,000 new pilots, one million cabin crew, and 600,000 engineers in the coming years.
These constraints, he stated, mean airlines must plan conservatively, invest strategically, and stay ahead of the curve. For MAG, remaining resilient and focused is not optional; it is essential to compete effectively in a rapidly transforming aviation landscape. Captain Izham also remarked that the coming decade represents the initial stages of a broader reinvention of aviation, with structural changes anticipated to reshape the industry by 2040. Those who adapt early in infrastructure, regulation, technology, and energy will define the future of aviation.