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Asia Pacific airline capacity spurs new airline entry, offshore bases

14-Jan-2008
  • Asia Pacific and Middle East set for busy year in new airline activity;
  • Several carriers preparing to establish offshore hubs through cross-border JVs or fifth freedom rights;
  • Start-up activity hot in South Korea;
  • Extra domestic hubs are also planned by some carriers.
  • These changes, coupled with a possible global economic downturn, will result in some of the most competitive conditions in Asia for many years.

A surge in capacity for Asia Pacific and Middle East airlines will result in one of the busiest years in new airline activity in the region this decade. Several carriers are also preparing to establish offshore hubs through cross-border JVs, as well as through the utilisation of increasing rights available under more liberal air services agreements. Extra domestic hubs are also planned by some carriers.

These changes, coupled with a possible global economic downturn, will result in some of the most competitive conditions we have seen in Asia for many years. The projected deliveries of many new aircraft in 2008, combined with the proliferation of new entrants will result in the most competitive airline conditions ever seen in Asia.

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