Getting The Deal Through logo
Getting The Deal Through

Global overview

Mark Bisset

Clyde & Co LLP

Thursday 30 May 2019


Aviation is one of the world’s fastest-moving sectors, combining technology, innovation, entrepreneurialism, economic development, infrastructure support, demographic growth, contribution to globalisation and a touch of glamour. Progress in this sector is impressive in its speed and diversified in its nature.

Economic and traffic growth are two of the key indicators of growth in commercial aviation globally. Economic growth in a region generally has a strong impact on the increase in demand for air service. While in aggregate this is true, the degree to which air service grows in relation to gross domestic product (GDP) is not consistent throughout the world. Typically, in developing countries, air service grows at a much higher rate than GDP. Historic experience in Western Europe and North America shows that air traffic growth in a developed country with a mature air service market is less responsive to GDP than in a developing country. By way of illustration, Boeing’s worldwide forecast for the ratio of air traffic demand growth to GDP growth over the next 20 years is approximately 1:5, albeit with regional variation. At any time and in any place, few airlines have the internal cash available to self-finance acquisitions of new or used commercial aircraft, and most airlines seek financing from a variety of sources, including traditional bank debt, export credit guarantees, tax leases, capital markets and operating leases.

There has been much commentary in recent years relating to the enormous aviation potential of the economies of Brazil, Russia, India and China. Recently, Africa and the Asia-Pacific region have been regularly added to this list, and we may add Latin America and the Middle East to the regions already mentioned. In other words, heady growth (more than 6 per cent) is predicted in almost every region of the world with the exception of Western Europe, which may be considered to have reached saturation point.

To read more
sign up for access

login here login here.

In house counsel join for free. Individual practitioners and lawyers may register for a free trial. For information on firmwide subscriptions please contact us.

GTDT Aviation Law News is a weekly, free-to-view email briefing that delivers a mix of news, features and interviews, with insight from leading aviation lawyers, in-house counsel and regulators.

Whether your focus is regulation, litigation, insurance, finance or all of the above, GTDT Aviation Law News covers the key legal developments that affect your practice.

Follow Getting the Deal Through for the latest updates on law and regulation worldwide

Follow us on LinkedIn