AAPA 69th Presidents Assembly: APAC aviation soars despite ‘man-made’ crises
Asia Pacific aviation leaders struck a tone of cautious optimism at their annual gathering, projecting continued growth despite mounting headwinds from trade tensions and supply chain bottlenecks.
During the 69th Assembly of Presidents in Bangkok, the Association of Asia Pacific Airlines (AAPA) reported robust performance metrics for 2025, with international passenger traffic climbing 10% and cargo demand expanding 7% through September, both outpacing global averages.
However, beneath these encouraging numbers, industry executives are grappling with an increasingly complex operating environment.
The tariff turbulence
No issue loomed larger than the resurgence of tariffs, which AAPA Director General Subhas Menon characterized as an “entirely man-made” crisis. While aircraft and engines remain exempt, the raw materials and components that feed the aviation supply chain are not, creating cost increases that ultimately impact both airlines and passengers.
“Airlines are not against cost increases, only costs that don’t serve a useful purpose,” Menon noted, highlighting the impact of tariffs on both supply chains and consumer demand through inflation.
AAPA Director General Subhas MenonCharting a sustainable path
During the assembly, member airlines unanimously adopted ambitious sustainability targets, committing to 5% sustainable aviation fuel (SAF) utilization by 2030. Thailand emerged as a regional leader, announcing plans to supply 2% SAF by 2026 and up to 8% by 2030 – notably without mandates or additional taxes on frequent flyers.
However, frustration simmered over the industry’s heavy reliance on SAF as the primary solution.
“We are asked to rely mostly on a hard-to-get commodity,” Menon observed, advocating instead for a balanced approach that gives equal weight to breakthrough technologies in propulsion and design.
Military conflicts force airlines to reroute and respond
Beyond economic pressures, airlines are also facing unprecedented operational challenges.
Military conflicts have closed crucial airspace over 14 countries in the past year, with Russian airspace restrictions forcing costly route diversions. Adding to safety concerns, military forces have been spoofing navigation satellite systems, creating what industry leaders see as an ironic threat from those meant to protect civilian aviation.
The assembly passed resolutions addressing these challenges, calling for regulatory harmonization, enhanced regional maintenance capabilities, and improved safety protocols for lithium battery transport, a growing concern as the use of electronic devices proliferates.
Resolutions passed at the 69th AAPA Assembly
#image_titleDuring the assembly, APAC aviation leaders unanimously adopted resolutions focused on four pressing industry priorities:
Aviation sustainability: The assembly set an ambitious collective goal of reaching 5% sustainable aviation fuel (SAF) use by 2030. Leaders are calling on governments to put in place the policies and regulations needed to speed up SAF production and adopt fuel criteria that meet ICAO (International Civil Aviation Organization) CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) standards. The resolution also encouraged states to implement ICAO-approved systems for tracking and registering SAF while supporting affordable production methods like co-processing.
Supply chain strengthening: Member airlines pushed for targeted investment incentives and streamlined regulations to boost regional maintenance, repair, and overhaul (MRO) and manufacturing capabilities. The resolution highlights the importance of embracing circular economy practices, including recycling and reusing serviceable aircraft materials whenever possible.
Aviation safety – Lithium batteries: A separate resolution tackled the safe transport of lithium batteries, encouraging regulators to bring their practices in line with ICAO guidance for spare lithium batteries. The resolution emphasized the need for better data sharing and clearer public information about how passengers can safely carry and use lithium batteries.
Taxes and charges: Members agreed to urge regulators to avoid imposing taxes or charges on international air transport that are not directly cost-related or don’t align with ICAO guidance. The resolution warns against measures that place unnecessary financial pressure on airlines or hold back sustainable growth in air transport.
Looking ahead: the aviation industry cannot continue to be a “cash cow”
Despite turbulent times, AAPA members remain bullish on 2026, banking on resilient Asian economies and strong underlying demand for air travel.
The focus will now be on advancing safety and sustainability while strengthening supply chain resilience through closer collaboration with regulators and suppliers.
AAPA Director General Subhas MenonWith his trademark knack for puns, Menon concluded his address with a touch of industry humor.
“This industry has been seen as a cash cow for the economy and states,” he said, “but it cannot be a cash cow if its udders are perpetually under repair.”
APAC aviation leaders made their position clear: despite growing challenges, they’re determined to protect an industry that’s vital to the region’s economic future.
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Asia Pacific aviation leaders struck a tone of cautious optimism at their annual gathering, projecting continued growth despite…
The post AAPA 69th Presidents Assembly: APAC aviation soars despite ‘man-made’ crises appeared first on AeroTime.
