ABSTRACT
While there is no specific definition of what constitutes an emerging market, the majority of countries classified as emerging economies appear to fall into the World Bank’s upper middle income and lower middle income categories (Tuncer, 2012). Thus, an emerging market can be defined as a market that is characterised by rapid economic growth, low to medium per capita income and increased participation in world trade. Thanks to strong economic and demographic developments, emerging markets are increasingly playing significant roles in the global aviation industry, with yearly revenue passenger kilometre (RPK) growth rates in the short to medium term expected to surpass that of more economically developed regions (Airbus, 2016) (see also Chapter 19). According to Airbus (2016), the aviation sector of emerging markets has grown rapidly over the past few decades, with RPK expected to grow at 5.8 per cent annually between 2015 and 2034 in emerging and developing economies, as compared to 3.5 per cent in advanced economies. The growth observed in recent years can also be explained by the gradual removal of restrictions on trade in air transport services in emerging economies.
