Latin America can learn a lot from China

I was recently in Beijing for the IATA Annual General Meeting and found some interesting parallels between our growing region and the not-so-sleeping dragon. I had been to China several times before, but never before had I felt so inspired by the magnitude of investments in the country’s vast and constantly-growing infrastructure. I couldn’t believe how quickly and dramatically China improved their aviation industry. In many cases, China’s airports, airlines and aircraft rival what we have come to know in the US and Europe.

While you can’t really compare China’s size and GDP with Latin America’s, the two regions share much in common when it comes to air transport growth rates and market potential. At a time when the global economy is trying to stabilize, Latin America’s GDP is growing faster than the world at an average annual rate of 5 percent, while the region’s middle class is expected to surge 75 percent in the next 20 years, according to the latest Airbus Global Market Forecast (GMF). But as my good friend Alex de Gunten, ALTA Executive Director (Association for Latin American and Caribbean Airlines), pointed out to Flight Daily News, "There is one key difference between the two regions - unlike China, we don't see government support for the industry [in Latin America] that we see [in China] in terms of infrastructure."

Latin America could learn a lot from China when it comes to dealing with air traffic congestion and over-saturated airports. Alex goes on to tell Flight Daily News, "In [China], air transport is really seen as an engine of development. Our region still has a lot to learn. What is going on is more of a patchwork of projects rather than long-term thinking."

Like ALTA and IATA strive to do, Airbus supports ongoing efforts to convince Latin American governments on the importance of air transport to the region's well-being. According to our latest GMF, Latin American airline traffic is expected to grow more than 6 percent per year in the next 20 years, the second highest growth rate in the world after the Middle East and before Asia Pacific. Overall, the region’s traffic is expected to triple in the next 20 years. It is true that this is a good problem to have as compared to more mature and economically-struggling markets such as the US and Europe, but nevertheless, this is something our region needs to address immediately in order to capitalize on the growth potential before them.

That growth and potential is embodied by the recent airline consolidation seen in our region. Last year we saw Avianca and Taca become AviancaTaca, and most recently, LAN and TAM completed their merger to create LATAM Airlines Group. I want to personally congratulate LAN and TAM for this important milestone. Now all three airlines from the historic Airbus joint-order in 1998 (LAN, TACA and TAM) have taken part in mergers that have made them stronger and forever changed the aviation industry in our region and beyond.

With more than 30 years in the aviation industry, Rafael Alonso is the Executive Vice President of Airbus Customer Affairs for the Latin America and the Caribbean region, responsible for all Airbus commercial activities and customer relations in more than 40 countries.