Written Assignment 1: Estimating Regional Air Transportation Demand - Research Paper Example

The perceived benefits of air travel are very clear to most passengers that rely on it for everyday travel. The essay highlights and appreciates the methods by Airbus and Boeing commercial airlines to forecast demand in the air travel industry. Airbus forecast for the next twenty years relies majorly on the power of its emerging markets. The emerging markets are strengthened by factors such as the exciting growth in the economy, an increasing population, as well as a relative increase in the number of middle-class individuals.

According to the forecast, the Asia-Pacific market is expected to become more significant in the delivery of new designs of aircrafts(Airbus, 2013). In terms of volume of production, the forecasts indicate the Single-Aisle market to persist as the most significant as compared to the competing markets. Within the same forecasts, Airbus aircrafts are also expected to evolve immensely in terms of size and the capacity of the passengers as well as cargo. Popular seat categories such as the 175 and 210 are forecast to cover close to forty-six percent of the Single-Aisle aircraft market(Leeham, 2014).

Nonetheless, much demand in terms of expansion is expected to be seen within the 150 seat segment aircrafts. The Little growth forecast has been made concerning the Twin-Aisle aircrafts owing to the significant development already achieved in Asia and other relevant regions. Airbus uses a freighter GMF technique that has been part of the forecasting process for over ten years(Airbus.com, 2015). The process is continuously enhanced to account for all the production forecasts made in the aircraft and cargo industry.

The technique is related to the GMF passenger forecast that draws its results from the revelations and uses them to develop future holding capacities of Airbus aircrafts. The forecast process is handled in three different steps; traffic