Australia's Sydney Airport executive director aviation services Shelley Roberts, speaking at the CAPA Australia Pacific Aviation Summit, stated (07-Aug-2013) Air India's recent announcement of the launch of Delhi-Sydney-Melbourne service "took a lot of hard work" in the planning and negotiation phase, yet represents "massive potential in this market." Ms Roberts added "it makes sense to partner with destination airports," referring to Delhi International Airport, and that going forward "partnership is definitely the mantra."
Sydney Airport: Air India link represents 'massive potential in this market'
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Australia-India air travel market grows rapidly but SE Asian hubs hinder nonstop services
The Australia-India market has experienced rapid growth over the last three years, prompting Australia to lobby for more direct services. Visitor arrivals from India are up 50% since mid-2013, and total passenger traffic between the two countries is up approximately 30%.
Air India launched services to Melbourne and Sydney in 2013 but the Australia-India market is still dominated by Southeast Asian flag carriers. Singapore Airlines has been able to maintain a leading 41% share of the market. Malaysia Airlines also still carries more Australia-India passengers than Air India.
Attracting more nonstop flights from Air India, or the possible launch of nonstop flights to India by Australian carriers, will not be easy despite growing demand. Southeast Asia’s network airlines have a competitive advantage as they serve several gateways in both Australia and India. Southeast Asia’s growing medium/long haul LCCs have also started to compete in the Australia-India market and are well positioned to take a large share of the anticipated growth.
Cebu Pacific Air reconsiders Melbourne under Tigerair Australia partnership as Sydney route improves
Cebu Pacific Air is again looking at expanding in the Australia market by launching flights to Melbourne. Efforts in recent months to improve Cebu Pacific’s performance in Sydney, which was launched in 2014, are bearing fruit and the airline is confident with Melbourne it can stimulate further demand in the Philippines-Australia market.
The LCC initially added Melbourne to its network plan in 2015 after the Philippines and Australia forged an extended air services agreement. But Cebu Pacific subsequently decided to shelve plans to launch Melbourne, and has instead been using additional A330 capacity to expand in its domestic and regional international market.
Melbourne is now back on the agenda and is the next priority – leapfrogging Honolulu – for Cebu Pacific’s long haul operation. A new partnership with Melbourne-based Tigerair Australia is a key driver in making Manila-Melbourne a viable route, along with the anticipated rapid growth in Australian visitor numbers to the Philippines.