Southeast Asia benefits from having one of the fastest growing economies in the world, driven by the expansion of the trade and tourism sectors.
Jetstar Pacific Airlines
The Vietnamese air transport market appears poised for rapid growth this year as it continues to channel new domestic and international routes through its secondary airports, Vinh and Nha Trang. Vietnam Airlines launched service from Vinh to Vientiane, Laos, on January 12, making Vinh the fifth Vietnamese airport operating international services. Ho Chi Minh, Hanoi, Da Nang and Nha Trang Cam Ranh currently offer international routes.
Even as Asia Pacific airlines survived a testing 2011, overcapacity as a result of increased fleet orders is still concerning investors, who are already less willing to finance procurements in the current debt-laden environment. This was the message from Sydney-based thinktank, the Center for Asia Pacific Aviation (CAPA) at the Low Cost Airlines Asia summit here in Singapore last week.
Low-cost carriers (LCCs) in the Asia-Pacific region have made “huge inroads in a relatively short time,” according to the Centre for Asia Pacific Aviation (CAPA). This market penetration has occurred despite somewhat restrictive regulations in some places and government tendencies to favor full-service flag carriers.
Asia accounts for 25 percent of the world’s air traffic, a figure expected to grow to more than 30 percent in three years, largely thanks to the proliferation of low-cost carriers. With cheap fares, easy online bookings and direct connections to previously sleepy backwaters, budget carriers are bringing air travel to the masses in this part of the world.