Southeast Asia poised for another year of growth in 2013

2012 was a dynamic year for Southeast Asia's aviation market with more rapid growth, driven by low-cost carriers and the launch of five new airlines. The rapid pace of start-up activity will likely not be repeated in 2013 and some of the region's LCC markets are approaching maturity. But the continued strength of the economies in ASEAN, led by booming Indonesia, and the continued rapid rise of the region's middle class should ensure another big year of traffic growth for Southeast Asian carriers - particularly LCCs and, to a lesser extent, full-service carriers.

Low-cost carriers now account for over 50% of total seat capacity within Southeast Asia. Three of the five new jet operators in Southeast Asia which launched in 2012 are low-cost carriers - AirAsia Philippines, Singapore's Scoot and Indonesia's Mandala (the latter had been a full-service carrier prior to suspending operations 15 months earlier). The other two new carriers in Southeast Asia follow hybrid models - Thai Smile and Lao Central Airlines. VietJet would be a fourth new LCC for Southeast Asia had it not launched services at the tail end (Christmas Day) of 2011.