Page 8 - AAA APRIL - MAY 2017 Online Magazine
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FeAtUre singLe AisLe
Asia have expanded by more than 50 per cent where restrictions are still applied, but
in only three years and have now passed the the region is not far away from achieving a
650-aircraft mark. As Southeast Asia continues fully liberalized market as more and more
to embrace the LCC business models today, markets open up to deregulating by lifting
there are more than 20 low-cost carriers all restrictions in line. For South Asia Boeing
residing in the region, which offer approximately says that “pure” LCCs now account for about
70 per cent of regional seat capacity, further 65 per cent of domestic capacity in India, and
demonstrating the substantial demand for full-service carriers are shifting additional
budget-friendly travel options and the potential capacity to their low-cost operations. It says
to grow even further.” that South Asia will need 1,690 single-aisle
Continued adoption of the business model airplanes by 2035.
within the region is providing airlines with Airbus numbers are somewhat less than
flexibility and profitability needed to open new Boeing with the aerospace giant forecasting
routes while driving the need for 2,980 new in its Global Market Forecast 2016-35 saying
single-aisle airplanes, which make up about 80 that that the Asia Pacific region will need
percent of all new airplanes forecasted in the 9074 single-aisle aircraft. It states that “low
region over the next 20 years. cost carriers whilst present and playing a
A big key to this is liberalisation through role in increasing the accessibility of aviation
the ASEAN single aviation market policy, also in the region have opportunity to grow inter-
Tokyo-based ANA known as ASEAN Open Sky Agreement, which regionally. Some 25 per cent of Asian inter-
took delivery of is the region’s major aviation deregulation region seats are flown by these airlines, in
its first A320neo policy. This agreement enables airlines to Europe it is over 40 per cent.”
in December 2016,
becoming the first operate unlimited flights to any point in Airbus notes that “China and Japan in
Japanese operator the region among the ASEAN members particular have a lower share than other Asian
of the type. ANA’s without restriction, subject to airport slots countries like Malaysia and the Philippines.” It
A320neo’s will availability. However, Boeing says that true also points out the dramatic impact of the
have 8 Business
Class seats and 138 “open skies” for the region will remain elusive LCCs on air travel in Asia. In 2009 there 78
Economy Class seats for some time as there are a few markets cities pairs in the China-ASEAN Air Transport
8 ASIAN AIRLINES & AEROSPACE APRIL / MAY 2017 WWW.GBP.COM.SG/AAA
