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CAPA – leaders in global aviation knowledge, delivering market analysis, data and information services to support strategic planning at blue chip international aviation organisations worldwide.

LCCs in Southeast Asia differentiate business models to survive: CAPA Finance Summit, Singapore

25-Feb-2015 4:00 PM

The LCC model in Southeast Asia continues to evolve as airlines respond to opportunities as well as challenges in the dynamic Southeast Asian marketplace. At the upcoming CAPA Airline Fleet and Finance Summit, there will be a lively panel discussion examining the future of the LCC model in Southeast Asia and how the region’s LCCs are trying to differentiate themselves in the increasingly competitive but fast-growing market.

There are currently 21 LCCs in Southeast Asia operating about 550 aircraft. LCCs now account for one-third of the region’s total fleet and almost 60% of seat capacity. Southeast Asia is now home to the world’s three largest LCC airports – Kuala Lumpur International, Bangkok Don Mueang and Jakarta Soekarno-Hatta.

The staggering growth from a base of virtually zero at the turn of the century has completely and forever changed the competitive landscape. The growth seems poised to continue as the region’s LCCs having committed to acquiring about another 1,200 aircraft over the next 10 years. Three new LCCs are also planning to launch scheduled services over the next couple of months.

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