Regional distinctions
Differences in the air transport markets of the various regions and the continuous evolution of airline business models cause airplane demand to vary from one region to another. As new airlines emerge, more mature airlines seek ways to preserve and increase their share of the passenger market. Market growth strategies include increasing frequency of service, expanding the number of city pairs served, offering new products, and introducing products to serve the business passenger-all while staying true to the airline's brand image. The business models of mature airlines are also evolving through mergers and acquisitions; joint ventures with alliance partners; innovative long-haul products, such as Air New Zealand's Skycouch(tm); introduction of premium economy class products; and reassessment of short-haul services.
Each region's airplane demand reflects its unique market characteristics. For example, demand in North America and Europe concentrates on single-aisle jetliners, driven primarily by the need to replace aging airplanes. In Asia Pacific and the Middle East, on the other hand, the passenger market favors business models that rely heavily on twin-aisle airplanes, so twin-aisle jetliners account for a larger share of total airplane demand in those regions than in other regions.
Globalized demand
At a global level, the number of airplanes in the world fleet grows an average 3.6 percent each year. At the same time, passenger traffic, measured in revenue passenger-kilometers, grows 5.1 percent per year. Cargo traffic, measured in revenue tonne-kilometers, grows 5.6 percent a year. The increasing geographical diversity of the aviation industry underlies this expansion and significantly increases the industry's resilience to regional fluctuations. Notably, some regions were less affected than others by the recent economic crisis and a few regions even continued to grow through the global downturn.