Indonesia's Transportation Ministry Director General of Air Transportation Herry S Gumay said he expects air passengers in Indonesia to increase by 13% in 2012 to over 70 million passengers, compared to 62 million in 2011. Mr Gumay, as quoted by The Jakarta Globe, said the country’s growing economy and strong purchasing power is allowing more Indonesians to travel by air instead of by land. Indonesia National Air Carriers Association (INACA) secretary general Tengku Burhanudin said, “The growth in domestic airlines is the backbone of the industry.” Indonesia’s economy is expected to grow by 6.5% in 2012.
Indonesia expects air passengers to increase by 13% in 2012 to over 70 million pax
You may also be interested in the following articles...
Southeast Asia Fleet Outlook:
Southeast Asia, along with the Middle East, are the only two regions with as nearly as many aircraft on order as in the active fleet. Southeast Asian airlines currently have nearly 1700 aircraft on order compared to an active fleet of approximately 1800 aircraft.
Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.