AirAsia regional head Zaman Ahma, speaking at CAPA's North Asia LCC and New Age Airlines conference in Macau, stated (06-Sep-2012) AirAsia Japan recently carried a group of 16 school children from Tokyo Narita to Sapporo so they could participate in a football match for the day. Meanwhile Peach has facilitated day trips to Seoul from Osaka Kansai, often for shopping trips. These examples show Japanese LCCs are enabling passengers to take affordable day trips which they were previously unable to do.
Japanese LCCs enabling affordable day trips
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AirAsia Group 2017 outlook: faster expansion across portfolio as Japan & potentially Vietnam launch
The AirAsia Group is accelerating expansion at all five of its existing airlines in 2017 following a decision to acquire 22 more aircraft than originally planned. The group is confident it is now in a position to pursue faster – and strategically important – growth following significant improvements to its bottom line in 2016. However, such expansion could pressure yields and profitability, particularly as 2017 is shaping up to be a year of intensifying competition and increasing fuel prices.
AirAsia’s original operation in Malaysia is accelerating growth in 2017 with at least eight additional aircraft, in a strategic response to intensifying competition. Thai AirAsia is now planning to add six aircraft in 2017, despite challenging market conditions in Thailand. The group’s affiliates in Indonesia and the Philippines, which have shrunk their fleets the last two years as part of restructuring initiatives, are planning to resume growth with two and four additional aircraft respectively.
The group’s youngest affiliate, AirAsia India, is also accelerating expansion in response to policy changes in India, and now plans to add six aircraft in 2017, for a total of 14. The newest affiliate, AirAsia Japan, finally aims to launch services in 1Q2017 and end the year with five aircraft. AirAsia is also considering launching an affiliate in Vietnam by the end of 2017, although no new JVs have yet been allocated any aircraft from the group’s 400 strong order book.
AirAsia Group to accelerate growth in 2017 with more deliveries, India push and Japan launch
The AirAsia Group is planning to accelerate expansion in 2017, with several additional deliveries. The short haul LCC is bullish on its prospects for 2017, particularly in India, Indonesia and the Philippines which are on course to achieve profitability by the end of 2016.
The group is also hoping to benefit from more favourable conditions in its original home markets of Malaysia and Thailand. While AirAsia has remained profitable at a group level over the last two years it has been impacted by relatively challenging conditions in Malaysia and Thailand and steep losses in India, Indonesia and the Philippines.
The group’s fifth joint venture, AirAsia Japan, is now slated to commence operations in 1Q2017. Japan will help drive a new phase of growth after a hiatus from fleet expansion over the last two years.