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Exclusive Aviation Survey (Part 8

Press Release

International opportunities

58% of Full Service Carrier (FSC) passengers, and 50% of Low Cost Carrier

(LCC) passengers surveyed in India, stated that they are planning an international

trip in the next twelve months.

Even allowing for overstatement, this would suggest that the current profile of domestic travellers in India is not representative of the mass market/lower income bracket. Despite the massive growth in traffic in recent years, it is still the case that the vast majority of Indians have not yet discovered the joys of low cost flying.

Indeed, there is not a great contrast between the average family incomes of the FSC and LCC passengers who took part in the survey. More than 53% of LCC passengers came from households with monthly income of greater than INR40,000 (approximately US$1,000). In the case of FSCs, the corresponding figure was 62%.

Passengers were asked about their preferred destination if low fares were available. The market showed a preference for Singapore as a short haul destination with 30% and 31% of FSC and LCC passengers respectively expressing a desire to travel to the city state.

Dubai was second favourite (22% and 21% respectively), possibly revealing a trend for shopping destinations. Nok Air appears to have identified this preference, having badged itself as the "Shoppers' Airline" in the Bangalore market where it launched services earlier in the year. Perhaps surprisingly, only 7% of passengers in both categories chose Kuala Lumpur as a preferred destination, an indication that AirAsia may need to work hard to change this mindset.

Next Week: What Happens Next?