Low-cost carrier market share to double to 25% in Asia/Pacific by 2012

Tina Milton

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Low-cost carriers will continue to challenge their full service rivals and will secure 25% of total seats in the region by 2012, according to CAPA

The growth of low-cost carrier fleets in Asia/Pacific will propel the sector to capture 25% of the total seats in the region within five years – double their current level, according to latest estimates from the Centre for Asia Pacific Aviation (CAPA).

Growth in low-cost carrier numbers in the region (based on known orders), will rise from about 300 aircraft with 45,000 seats to about 870 aircraft by 2012 with 170,000 seats - almost a four-fold increase.

AirAsia Group (including its Malaysian, Thai, Indonesian and long-haul operations) will become by far the region’s biggest low-cost airline by 2012, following the confirmation this week of an order by AirAsiaX for A330s configured with 396 seats each.

Jetstar is also poised for significant capacity growth over the next five years, while Tiger Airways will also rise up the rankings following a Memorandum of Understanding for 30 additional A320s (plus 20 options), giving the Singapore-based carrier the ability to grow its fleet to 70 A320s – probably by the middle of the next decade.

Meanwhile, Indonesian carrier Mandala Airlines has ordered 25 A320s to replace its ageing B737-200 fleet and provide capacity for growth.

The growth calculation excludes major orders by Indonesia’s Lion Air and Hong Kong Airways, which will both exert significant competitive pressure on incumbents in their respective markets.