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Airline industry key to economic growth: Minister

Minister of Transport and Infocommunications Pengiran Dato Seri Setia Shamhary bin Pengiran Dato Paduka Haji Mustapha said the airline industry is integral to economic development, global connectivity, and the movement of people and goods.

In the latest International Air Transport Association (IATA), June 2024 Global Outlook for Air Transport – the total global air passenger traffic surpassed the 2019 pre-COVID numbers in February this year.

The minister shared this in his opening remarks during the launch of Royal Brunei Airlines (RB) inaugural flight to Chennai, India on Friday.

He said most countries are expected to surpass 2019 levels in 2024 and maintain a steady growth. Over the next 20 years, global passenger numbers are projected to grow by an average of 3.8 per cent annually, leading to over four billion additional journeys by 2043 compared to 2023, the minister added.

The Asia-Pacific region is expected to see the most rapid growth, contributing to more than half of the global increase in passenger numbers by 2043.

Minister of Transport and Infocommunications Pengiran Dato Seri Setia Shamhary bin Pengiran Dato Paduka Haji Mustapha delivering his speech at the event. PHOTO: MUIZ MATDANI

Despite initial concerns about declining air cargo yields in 2024, booming e-commerce and disruptions in global maritime shipping have resulted in positive growth rates and increased traffic levels, signaling potential for expanding air cargo volumes this year.

Additionally, connectivity is crucial for the airline industry, as it facilitates the smooth flow of goods, people, and ideas essential for the global business value chain.

The event themed ‘Bridging Destinations, Uniting Cultures: The Brunei-Chennai Connection’, signified a milestone in the realms of tourism, trade, and friendship between Brunei Darussalam and India.

“This new route stands as a testament to Royal Brunei Airlines’ (RB) unwavering commitment to expanding its global footprint, enhancing air connectivity, and strengthening bonds with vital markets around the world.

“Through this initiative, we are not only opening new avenues for travel but also deepening the ties that unite our nations.”

The minister said with the launch of RB operations to Chennai, the total number of city pairs connected to Bandar Seri Begawan rises to 21, spanning 18 countries.

This expansion reflects Brunei’s ongoing commitment to enhancing global connectivity. The development also positions Brunei as a gateway to other regional destinations and opening up new economic opportunities, he said.

“While we continue to see improvements in air passenger traffic numbers at Brunei International Airport, we are currently at 60 per cent pre-COVID levels for air traffic passengers, of which RB is a key contributor to these numbers.”

The minister urged and encouraged airlines to remain proactive in seeking new connectivities through the availability of signed Air Service Agreements.

The Ministry of Transport and Infocommunications will act as a facilitator, forging new agreements with countries while encouraging airlines to leverage existing ones.

This collaborative approach aims to enhance connectivity, stimulate growth, boost the tourism sector and solidify Brunei’s position as a key player in the aviation landscape.

Under the leadership of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, and Indian Prime Minister Narendra Modi, the strong bonds between the two nations have been nurtured. Their dedication to fostering this partnership laid the foundation for this connection, Pengiran Dato Seri Setia Shamhary said.

He said with nearly 15,000 Indian nationals residing and working in the Sultanate, the new route will make it easier for them to travel, particularly within the Visiting Friends and Relatives (VFR) segment. It will also attract new waves of Indian tourists, bolstering the local tourism industry and establishing Brunei as a transit hub for travellers exploring the ASEAN region and beyond.

The Brunei – Chennai connection will enhance business opportunities between the two countries, facilitating cargo movement and stimulating market exploration, benefiting the industries and economies of both Brunei and India, the minister said.

“I am also pleased to announce that the Brunei Economic Development Board (BEDB) will be organising an investment seminar for the Indian market during the inaugural flight week, showcasing Brunei’s business-friendly environment and investment opportunities.”

The airline, along with BEBD, will also host a Brunei Night in Chennai to promote Brunei’s tourism, supported by the Brunei High Commission in India and Brunei Tourism, he said. – Lyna Mohammad

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