Singapore-Jakarta emerges as world’s fastest growing major route as Tigerair, Garuda and SIA expand

The Singapore-Jakarta market is seeing a 24% influx in capacity as several carriers have raced to add flights in 2H2013 following a breakthrough in the bilateral between Singapore and Indonesia. Tigerair and Garuda have led the way with significant increases while Singapore Airlines (SIA) and Jetstar have also pursued more modest additions.

Singapore-Jakarta has become the fastest growing major international route. It is now the second largest international route after Hong Kong-Taipei and the 12th largest overall.

A further 25% increase in capacity is likely in 2014 as carriers implement more of their newly awarded traffic rights.The sudden surge could result in short-term over-capacity. But over time the additional capacity should be absorbed given the fast-growing demand for services to and from Indonesia, which has emerged as one of the world's most dynamic emerging markets.