Inadequacies of conventional traffic forecasting in determining the demand for new aircraft

Decisions concerning the selection of new aircraft must take into account the expected volume and character of air traffic in particular future markets. An investigation is, therefore, conducted regarding the currently available approaches for obtaining estimates of air traffic growth. Essentially, air traffic forecasting consists in studying past air traffic growth patterns, attempting to determine what may cause them to change, relating them where possible to such determinants or to other series whose changes they follow in some predictable fashion. Attention is given to the short-shelf life of conventional air traffic forecasts, the observation that most forecasts reflect recent experience, factors which may partially offset the inadequacies of air traffic forecasting technology, the limitations of conventional forecasting, and research useful in identifying a range of future scenarios.