Indonesian Government may increase capital spending in the 2011 state budget may rise by IDR26.6 trillion (USD2.96 billion) to IDR121.7 trillion (+28%) in 2011 in an effort to increase infrastructure development (Bloomberg, 16-Aug-2010). A higher infrastructure budget will assist in the construction of 14 new airports, 850 km of railways and improve the capacity of 2,613 km of roads. President, Susilo Bambang Yudhoyono stated the government plans to reduce the state budget deficit next year to 1.7% of GDP from 2.1% of GDP assumed in the 2010 budget.
Indonesian Government plan to boost 2011 infrastructure spending: 14 new airport
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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.
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.