Association of Asia Pacific Airlines (AAPA) director general Andrew Herdman, speaking at CAPA's World Aviation Summit in Hong Kong, stated (28-Nov-2012) “Over the past decade, Asia has gone from being a destination market to being an outbound market. The centre of economic gravity is shifting from West to East”. Mr Herdman noted in terms of purpose of travel, leisure traffic is growing at a faster rate in Asia than elsewhere, with strong intra-regional travel growth which it outpacing long-haul travel and the industry average. He noted globally 8% of the people travelling across premium classes generate 25% of global revenue and in Asia, the proportions are around 10% and 30%, respectively. Mr Herdman also said he does not accept the notion full service carriers are neglecting the economy sector, stating full service carriers are trying to cater for this segment. He, however, conceded the LCC model is the "winning" business model in the market. LCC penetrations in Asia are around 12-15%, compared to the global average of 20-25%. LCCs are capturing around 12% of the global revenue it is around a USD630 billion. He also said alliance is a revenue generating synergy tool airlines use to work around regulation restrictions on cross border mergers and integrations.
Asia has grown to become an outbound market, LCC is the 'winning' business model in the market: AAPA
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The global commercial aircraft fleet grew by 4% in 2016 and the year ended with an order backlog of more than nine years of production. Among the regions, North America still has the biggest and oldest fleet, but the lowest ratio of orders to aircraft in service. By contrast, Middle East has the fewest in service, but the highest ratio of orders to current fleet numbers.
This report gives an overview of the number of commercial aircraft deliveries in 2016 and the outlook into 2017 and beyond. It also looks at numbers in service and on order by region. It is based on preliminary numbers from the CAPA Fleet Database and guidance on 2016 deliveries from Airbus and Boeing, who have yet to announce final numbers.
The data indicate that total worldwide deliveries fell in 2016, the first such decline for six years, as a result of delays to new aircraft programmes. Boeing delivered more aircraft than Airbus for the fifth straight year, but its deliveries fell short of its 2015 level, while Airbus increased its numbers year-on-year. Total deliveries will likely rise again in 2017, but this may prove to be a peak year.
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CAPA’s 2016 outlook was against a background of unusually high levels of profitability for airlines.