Industry Analysis & Industry Trends
Industry revenue is estimated at $112.9 billion during 2011, which represents an 8.1% increase on the previous year. The strong growth will stem from passenger numbers recovering by an estimated 5.6% and operators increasing prices. IBISWorld estimates that industry revenue will grow by an average 4.4% per annum over the five years through 2011. Industry revenue dipped in 2009 during the global downturn as passenger traffic declined. Despite tougher times in 2008 and 2009, the industry experienced a wave of new airport developments in major growth regions across the world. These expansions in developing economies, primarily in the Middle East and Asia, will promote international air travel around the world... read more
Starting a New Business
The prohibition by law for private ownership of scheduled air transportation airports in some countries is a large barrier to entry. In addition, acquiring leasehold land belonging to local or state government can also be a formidable barrier. Major airports are generally located on national government property.
High capital costs and regulatory compliance costs are also significant barriers to entry. Costs to purchase specialist machinery, hangar and other airfield space, to employ skilled labor and to satisfy stringent safety requirements are very high and a significant barrier to industry entry. At the other end of the scale, a new mining operation may only need an authorized landing strip to bring in supplies and to transport personnel... read more