CAPA Aviation Outlook 2015. SE Asia - LCCs still dominate the agenda as flag carriers restructure

Southeast Asia is a market of both challenges and promise. 2015 will mark the second consecutive year of slower growth and potentially the second consecutive year when most airlines ended in the red. But improving market conditions, lower fuel prices and restructuring efforts should at least reduce the losses/migrate to profit and allow new growth.

The region has emerged over the past decade as one of the world's fastest growing emerging markets, capturing the attention of global suppliers. The rapid growth has primarily been driven by fast expansion of LCCs - both independent groups and subsidiaries of full service groups. Meanwhile, flag carrier growth has stagnated.

This report is based on a review contained in CAPA's Global Aviation Outlook 2015 which appears in Airline Leader, Issue 26.