Aviation is on path of growth worldwide. There remain several big challenges in the aviation industry despite the increase in flights, routes, and air passengers. Although the industry expects the number of air passengers to grow in 2018, the increase will also greatly depend on macroeconomic growth.
Despite global headwinds, Asia will continue to contribute to 60% of world growth. While countries in other world regions are experiencing declines in economic growth, World Bank forecast more than 10 Asian countries will experience marked growth of above 6% in 2017, amongst them China, India, Philippines, Vietnam.
The Singapore Airshow 2018, the largest aerospace and defence event in Southeast Asia, took place between 6 to 11 February. Unlike previous years, large aircraft makers did not announce any new commercial jet orders during the event. However, smaller plane manufacturers did better.
The 12 to 16 November 2017 event saw one of the biggest deals secured by major aviation companies. Airbus signed its largest contract with Indigo Partners worth $49.5 billion for purchase of 430 aircrafts in the A320neo family, while Boeing signed contracts worth $50.7 billion in list price for 302 of its aircrafts.
While Africa has one of the biggest populations in the world, its aviation industry is still small, representing only 2% of the global market. Despite all the major challenges ahead, this is an industry that has very big potential for future growth in Africa.
According to the African Development Bank, the African continent has been growing at a fast pace, averaging 4.88% from 2005 till 2015. Moreover, both the International Monetary Fund and World Bank predict that in the coming years, many of the fastest growing economies will be from Africa.