APAC is the fastest growing air travel and cargo market: Subhas Menon, DG, AAPA


In this exclusive interview, Mr. Subhas Menon, Director General, Association of Asia Pacific Airlines (AAPA) shares his insight with Vishal Kashyap, Managing Editor, Aviation World on key topics of the Aviation sector and the role of his organisation in addressing and resolving issues of its member airlines impacted from the global challenges. Excerpts…

As DG of AAPA, what are the priority areas for your member airlines?

Priorities are always Safety, Sustainability and Seamless air transportation. Civil aviation was established more than 80 years ago as a force for the good of humankind. Aviation would not have thrived as it has if not for the dedication to safety. Sustainability is not only environmental protection but also safeguarding food and energy security as well as making sure that the wellbeing of future generations is also safeguarded. Air transport is an integral part of the global economy but must not be unduly inhibited for it to work its magic.

How does AAPA contribute towards addressing the issues of its member airlines?

AAPA proposes the annual agenda and the Assembly of Presidents of the member airlines endorses it for AAPA to deploy the annual plan. The aviation world is dynamic so AAPA adapts to the changing needs. For instance, reciprocal tariffs was not the issue when the Assembly of Presidents considered the outlook for 2025 in November 2024. But we must incorporate this subject into our advocacy programme as it strikes at the very core of the industry’s raison d’etre – Connectivity, Global Trade, and Sustainability.

At present, how many airlines in the region are members of AAPA? Does your body work specific to local regulatory issues as well?

We have 18 members. Sometimes we consider local regulations especially if they depart from global standards and ICAO’s agreed structures. Consistency and connectivity are the main principles we consider regulations by.

In a recent report issued by AAPA, it mentioned that airlines across APAC demonstrated financial resilience in 2024.What are the probable reasons for such numbers?

Air transport is often a socio-economic necessity in APAC which is neither a contiguous, nor compact region. Other modes of transport are poor substitutes. Air transport and the economy have a symbiotic relationship. On both fronts APAC growth is double the global average. Trade and tourism are the bread and butter of the region. With the largest youth population, air transport is the perfect conduit for the most dynamic region in the world.

Air India is also a member of AAPA. Due to the major incident last month, do you find the airline’s operational goodwill has been impacted?

It was a very unfortunate incident, and our hearts go out to all those impacted by this very sad event. We must wait for the final report by the AAIB to understand how such tragedies can be avoided. Air transport is the safest mode of transport because it has always improved its safety record. Information and best practices are shared so that we improve continuously.

In comparison to other geographical regions, how do you see the aviation potential in APAC? How is India performing in comparison to other states?

APAC is the fastest growing air travel and cargo market. By 2050, it is expected to account for more than 40% of all air travel and freight transportation. After a buoyant and profitable 2024, the region is still growing in 2025 by double-digits. This is amid the threat of unprecedented tariffs, as well as geopolitical and trade tensions. The underlying factors are all positive for APAC. India was the first market to overtake pre-pandemic levels of traffic and is still growing strongly. India’s civil aviation authorities have a robust and regenerative vision for the county’s aviation landscape to satisfy Indians’ penchant to connect with the rest of the world and to open India for business, as well as tourism. The world is now her oyster from AAPA’s vantage point.

Cargo is getting impetus as well but is it achieving the projected/expected FTK?

Cargo is often the barometer for the world economy. There is a lot of uncertainty in the world economy. Air cargo growth has moderated as a result. Furthermore, tariffs affect exports which affects trade and air cargo. Nevertheless, where one door shuts, two other windows of opportunity spring up elsewhere. Intra-regional cargo-flows and those to/from Europe and Latin America are looking buoyant.

The upcoming APASS 2025 in Manila will focus on “safety”. With so many aircraft incidents in recent times, does it impact the reliance over air safety as people fear to travel with certain types of aircraft. How can one reinstate such trust factor?

APASS 2025 is timely and in line with what the industry has always done: Put Safety Front and Centre of everything that we do. By sharing best practices and enhancing collaboration across stakeholders, we get better and better at what we do. We also need to communicate with consumers and the travelling public on our efforts, which is why we are inviting members of the media.

What are the future plans of AAPA? Also, what’s your projection of aviation growth for the coming years?

Focus for the year is on damaged supply chains and frequent air space closures which have implications for safety, sustainability and seamless connectivity. The continuing supply crisis is a drag on air transport growth, environmental performance and efficient operations. Operating older equipment also retards carbon emission reduction. Air space closures disrupt and prolong flight times when flights are diverted impacting safety and sustainability. This industry’s success has a lot to do with efficient supply chains by taking advantage of free trade. Tariffs undermine supply chains.

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