Asia Pacific LCC market share to double to 25pct by 2012

A swag of new orders by Asia Pacific LCCs will propel the sector

to 25% of total seats in the region within five years – double their current

penetration, based on latest estimates from the Centre for Asia Pacific Aviation.

Growth in LCC fleets in the region (based on known orders), will rise from about

300 aircraft with 45,000 seats to approximately 870 aircraft by 2012 with 170,000

seats - almost a four-fold increase.

AirAsia Group (including its Malaysian, Thai, Indonesian and long-haul operations) will become by far the region’s biggest LCC by 2012, following the confirmation this week of an order by AirAsiaX for A330s configured with 396 seats each.

Asia Pacific* LCC fleet: current and 2012 (total seats in fleet)
Based on known orders)

Source: Centre for Asia Pacific Aviation.
* Graphic includes four Middle East LCCs for reference, but which are excluded from the capacity discussion in this report.

Jetstar is also poised for significant capacity growth over the next five years, while Tiger Airways will also rise up the rankings following an MoU for 30 additional A320s (plus 20 options), giving the Singapore-based carrier the ability to grow its fleet to 70 A320s – probably by mid-next decade.

Meanwhile, Indonesian LCC, Mandala Airlines has ordered 25 A320s to replace its ageing B737-200 fleet and provide capacity for growth.

The growth calculation excludes major orders by Indonesia’s Lion Air and Hong Kong Airways, which will both exert significant competitive pressure on incumbents in their respective markets.

LCCs are set to continue to challenge full service rivals in short-haul markets and increasingly long-haul segments in the region. The battle is set to intensify...

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