Image Image Image Image Image Image Image Image Image Image

CAPA TV | August 17, 2018

Scroll to top

Top

Are Australian/New Zealand Airport Charges “Fare”? Unpacking The Economic Reality Of Airport Privatisation

Are Australian/New Zealand Airport Charges “Fare”? Unpacking The Economic Reality Of Airport Privatisation
CAPA
  • On August 12, 2018

Low cost long haul airlines are rapidly attaining mainstream status globally – it has tripled its share of international seat capacity over the last four years.  This is thanks to a confluence of factors including fuel efficient aircraft technologies opening up economically viable new city pairs, stable fuel prices and the recent launch of several new low cost subsidiaries by full service carriers seeking growth opportunities from servicing leisure/ price sensitive customers on long, thin routes. Australia has played a key role in the growth of low cost long haul airlines (at one stage it held the majority of low cost long haul seat capacity), though there has been little to no growth in recent years, and the country now holds only about 15% of global low cost long haul capacity. However, this is still a significant figure given that Australia has only the tenth largest aviation market globally based on total seat capacity. And the country has a relatively high ratio of long haul low cost to overall capacity – 4% of total capacity, and 10% of international capacity, compared with global long haul low cost operations accounting for less than 1% of total capacity and less than 4% of international capacity.

  • Is there room for further growth in O & D markets or is the focus now on linking Australia with long haul destinations through sixth freedom traffic?
  • Has Australia’s role in pioneering the growth of the model diminished? What future role will the country play in this space, as the global market continues to grow?
  • Will the arrival of new long range narrowbodies like the A321neoLR drive further expansion of the low cost long haul model in this market?

Moderator: Mentor Aviation Services, Executive Director, Andrew Drysdale
Panellists:
Cebu Pacific, Chief Operations Adviser, Rick Howell
Japan Airlines, Vice President Asia & Oceania Region Marketing & Strategy Research, Akihide Yoguchi
Scoot, General Manager ANZ, Jared Simcox

Next Story

This is the most recent story.

Do you enjoy CAPA TV? Please spread the word!