- Visitor arrivals: 2.4 million, +14.2% year-on-year;
Visitor arrivals to Macau up 14.2% in Aug-2010
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AirAsia exploring future opportunities in Northeast Asia: Chinese affiliate enticing, but difficult
AirAsia is doubling down its focus on North Asia with a regional office in Hong Kong overseen by former AirAsia executive Kathleen Tan, who is widely credited for AirAsia's strong Chinese relations and growth in China: AirAsia is the largest non-greater China airline company in the country. Across North Asia the opportunities are large, but the challenges equally big. A China-based AirAsia affiliate would appear to be a long term ambition.
More immediately, AirAsia is regaining a local Northeast Asia presence with the launch of AirAsia Japan Mk II in 2017. Although delayed from initial 2015 start-up projections, AirAsia Japan gives the group relevance in a large domestic market and significantly growing short haul international market.
Elsewhere in Northeast Asia the opportunities are mixed. Korea and Hong Kong are becoming saturated and remain protectionist. Macau and Taiwan are unlikely to be big enough to support a local AirAsia unit.
HK Express receives first A321 and awaits A320neo as Hong Kong's LCC rate grows to 10 percent
HK Express continues to work towards its goal of ending 2018 with 50 aircraft. HK Express will end 2016 with 18 aircraft, including its first A321s and A320neo. The A321s provide additional capacity per movement – important to bring costs down, but also to grow where traffic and slots (at Hong Kong and abroad) do not permit.
Asian LCCs are increasingly gravitating to larger aircraft to try to overcome insufficient infrastructure. Larger narrowbodies at LCCs gained wide awareness with AirAsia's A321 order, although many other LCCs will operate larger types before AirAsia receives its first A321. The A320neo brings additional range, besides the usual efficiency improvements.
HK Express plans to end 2017 with 32 aircraft. Even if sustainable markets can be found, this is rapid growth for an opaque slot system at Hong Kong International Airport. HK Express' continued growth will further boost the share of seats that LCCs operate at Hong Kong. LCCs account for 10% of capacity at Hong Kong in 2016 – up from 5% in 2012. The gains have mostly been earned due to HK Express. With as much success as HK Express claims, it might now be time for the LCC to open its books and present transparent financial reports.