Singapore Aviation Part 3: North Asia will drive growth as China recovers and Japan, Korea expand

The Singapore-North Asia market has continued to grow over the last year despite a drop in visitor numbers from China and an overall slowdown in passenger traffic in Singapore. The market should experience accelerated growth in 2015 as visitor numbers from China recover.

North Asia is an important market for Singapore and its airline sector as the Singapore-Southeast Asia market is showing signs of maturity and overcapacity after several years of rapid LCC-driven growth. The Singapore-North Asia market is relatively unpenetrated and could be stimulated as medium-haul LCCs expand and discretionary income levels in China continue to grow.

This is Part 3 in a series of analysis reports on the Singapore market and the outlook for Changi Airport, which recorded passenger growth of only 0.7% in 2014.