The Asian Aviation Transformation
Over the past decade, Asia’s airline industry has changed beyond recognition, largely due to the arrival of LCCs and also because of the role being played by the Gulf carriers. In 2004, no full service airline believed that LCCs would be able to survive in Asia’s international markets. To imagine they would account for nearly two thirds of capacity in Southeast Asia was beyond anyone’s wildest imagination – or three quarters of India’s market, or 92% of the Philippines’.
There is still movement ahead; within North Asia only 10% of seats are on LCCs.And it not simply the scale of the change. It also relates to the many LCC subsidiaries of full service airlines, the cross border joint ventures, and most recently the long-haul-to-short-haul connectivity being demonstrated by the AirAsia group.
Where do we go to from here!?
CAPA – Centre for Aviation, Executive Chairman, Peter Harbison