The International Transport Association (IATA) has announced that passenger growth in Latin America and the Caribbean (LatAm) could reach 385 million within ten years.

If the region’s governments address infrastructure issues, embrace smarter regulation and observe global standards, passenger numbers could reach an all time high.

Passenger numbers in the region were 242 million in 2014, and although the region is home to more than eight percent of the world’s population, it only accounts for 5 percent of global air traffic. Therefore, the LatAm region could increase air traffic by more than 50 percent before the region reached even its minimum potential global share.

"Air transport is the mass transit system of the global economy; it drives economic growth, creates jobs, and facilitates business opportunities. Already, the Latin American and Caribbean region supports 4.9 million jobs and contributes $153 billion to regional GDP, including the benefits of travel and tourism,” said Peter Cerda, IATA’s Regional Vice President.

Both Latin America and the Caribbean are in a good position to make available the social and economic benefits which come along with robust air connectivity, though the region will need to overcome a number of obstacles to achieve them.

It is important for the region’s governments to understand the real value of aviation is global connectivity. Many of the countries in the region view airlines as providers of luxury services, and tax such services accordingly, placing a burden on the industry in this region.

Panama and Barbados are the only countries in the region to rank among the best 35 countries in the world for the quality of their air transport infrastructure. Brazil ranked 131, Colombia 105 and Mexico 64, although the future of Mexico City Airport is an excellent opportunity to create a world-class hub.

Mexico’s Ministry of Communications and IATA have recently signed a Memorandum of Understanding (MOU) in which IATA will provide technical and operational assistance for the design and construction of Mexico City’s new airport.

IATA will also provide technical and professional advice for the current Mexico City airport to enable it to continue operating efficiently until the new facility is completed.

"The MOU will allow the Mexican government to understand and adopt global best practices in the design of large-scale hub airports, just what we are looking to achieve with the new Mexico City airport. Additionally, IATA’s experience analyzing the management of slots will improve the process and align it with global best practices and be very helpful ahead of the increased air traffic in the country," said Gilberto López Meyer, Director General of Mexico’s General Directorate of Civil Aviation.

Under the new MOU, IATA will continue to ensure that slots at Mexico City Airport are optimised to maximise capacity so that the greatest economic and social benefits can be derived from the airport’s limited capabilities.

"IATA is pleased to be working with the Mexican authorities from the early stages on one of the region’s most significant air transport infrastructure projects. By working together we can ensure that the right decisions are made,” added Tony Tyler, IATA’s Director General and CEO.