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Southeast Asia airline market sees more rapid growth & high international low-cost penetration rates

Analysis

Southeast Asia continues to post some of the highest growth rates in the global aviation industry, driven primarily by expansion in the region's booming low-cost sector.

LCCs now account for over 50% of capacity in Southeast Asia's four largest domestic markets - Indonesia, Malaysia, the Philippines and Thailand. Even more impressively, LCCs have been able to rapidly claim about a 50% share in the intra-Southeast Asia international market.

But there has also been growth in 2013 at nearly all of the region's flag carriers. A large portion of this growth has been on regional routes as full-service operators have been able to join the LCCs in taking advantage of the generally favourable economic conditions in Southeast Asia.

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