ABSTRACT
This chapter describes the forecasts of air traffic, revenues and costs, as well as investment needs. Bjelecic placed similar importance on finance as slot availability for the main entry barriers, and saw this affecting the future structure of the industry. The industry will have to rely on continued export credit support to finance aircraft deliveries, given the weakness in equity markets and the reluctance of some banks to lend. The Middle East increased faster than forecast due to the rapid expansion of airlines based in Dubai, Abu Dhabi and Qatar, highlighting the need to take into account aircraft orders when producing short-term forecasts. Airlines based in the Middle East, especially Emirates Airlines, tend to focus on larger wide-bodied aircraft which pushes the average value per aircraft well above the other regions. An average of almost 90 per cent of capital expenditure by the world's airlines has historically gone towards aircraft.
