Southeast Asia’s Aviation Sector Expands Amid Economic and Environmental Challenges

Southeast Asia is experiencing significant developments in its aviation sector, with major airport expansion projects underway in Thailand, Cambodia, and Vietnam, alongside the launch of a new airline. The region is banking on an expected boom in air travel, particularly fueled by tourists from China and India. However, concerns about the uncertain economic environment and the impact of travel on climate change are also present.

Thailand’s Really Cool Airlines is slated to begin operations between Bangkok and Japan around mid-2024. The region currently accounts for 10% of global traffic, with more than 500 million passengers in 2019. Boeing anticipates this number to grow around 9.5% annually over the next two decades, exceeding the global average of 6.1%. Governments across the region are investing billions of dollars in updating and expanding airport infrastructures, with significant projects in Bangkok, Hanoi, Phnom Penh, and other major cities. However, environmental concerns and the aftermath of the pandemic pose challenges to the anticipated growth in the sector​​​​​​​​​​​​.