Thailand, Malaysia eye aviation leadership amid soaring growth
The winds of progress in the aviation sector are blowing strong across Asia-Pacific, with ambitious plans taking shape in Malaysia and Thailand.
Malaysia is setting its sights on becoming an aerospace industry leader by 2030, while the Thai prime minister has outlined strategic plans to turn the country into a regional aviation hub by the same year.
The International Civil Aviation Organisation (ICAO) believes the demand for air transport will rise by an average of 4.3% annually across the world over the next two decades, with the Asia-Pacific region witnessing the most substantial growth.
A study released last year by market research firm Mordor Intelligence forecasted the Asia-Pacific region’s aviation market to be the fastest growing between 2024 and 2029. Fuelled mostly by the recovering tourism industry, the aviation sector’s market size is expected to reach US$102.27 billion (3.76 trillion baht) by 2029, up from $88.35 billion. The rise in affluent travellers is also expected to stimulate the demand for business jets in the region.
The Malaysian Aviation Commission (MAVOM) recently released statistics for the first quarter of 2024, indicating 22.6 million passengers or a 16.1% uptick compared to the same period last year. This surge was mainly driven by international air travel, accounting for 11 million passengers.
“As we review air traffic figures for Q1, it is clear that the aviation sector is on a robust path to recovery. Airlines have shifted their attention to restoring and adding new international destinations to their networks,” Saripuddin Hj Kasim, MAVCOM executive chairman, said in an interview published by the commission on Thursday.
Malaysia’s aviation industry is on a steady path to recovery, with this year’s first-quarter figures reaching 85.5% of 2019 levels. Notably, this marks the first time that international air traffic has exceeded domestic air traffic since the pandemic, highlighting the recovery of global tourism.
On Thursday, Malaysian Transport Minister Anthony Loke said at the launch of a new private jet maintenance, repair and overhaul (MRO) service in Kuala Lumpur’s Sultan Abdul Aziz Shah Airport (Subang Airport) that the country was open to more foreign investments in aviation.
In February, he said that the airport will be transformed into a regional aviation hub by 2030.
At ExecuJet’s MRO services launch, Loke said Malaysia was focusing on business jets. “Jet operations will start soon this year, probably in the third quarter. We are in renovation right now, and there are some adjustments in terms of the terminal. That is just for the first three years,” he said.
The Subang Airport Regeneration Plan (SARP), a 10-year initiative led by Malaysia Airports Holdings Berhad, aims to revitalise infrastructure and establish the airport as a hub for MRO services. The project is expected to inject up to 8.7 billion ringgit into the economy annually and create more than 8,000 direct job opportunities upon completion in 2030.
Malaysia is not the only country aiming to position itself as an Asia-Pacific aviation hub. Thailand is also charting a course towards aviation prominence, with Prime Minister Srettha Thavisin unveiling the “Ignite Thailand Aviation Hub” strategy in March. This plan is to restore Suvarnabhumi Airport’s status as one of the top 20 airports in the world in five years and boost its capacity to handle up to 150 million passengers per year by 2030.
Don Mueang Airport’s capacity will also be expanded to serve up to 50 million passengers per year in 2030 from its current capacity of 30 million.
What would the new Transport Minister Suriya Juangroongruangkit do to explore further measures to help realise Thailand’s dreams of becoming a regional aviation hub?
