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Over the next six months, the aviation industry in Southeast Asia will be transformed irreversibly by the expansion of the low cost airline phenomenon. The impact will be to precipitate broader changes to airline operations overall, leading to a more sustainable service and operating formula.”



In its Asia Pacific Aviation Outlook 2004 report issued in January 2004, the Centre for Asia-Pacific Aviation says the advent of low cost airlines will be one of several factors that will make 2004 a year of massive opportunity for Asia-Pacific airlines, airports and tourism. It predicts among other things:


  • Rapid acceleration in liberalisation of air transport services;

  • An increasing focus on investment opportunities in Asia, improving the prospects of an array of airport privatisations; and

  • An aggressive response from national flag carriers to the need to restructure.


The Centre’s Managing Director Peter Harbison says low-cost airlines are revolutionising the point to-point airline market and, in turn, the way all airlines think about costs. Governments too are being forced to re-evaluate their aviation and tourism strategies to embrace the changing environment. The domino effect of new airline entry and of liberalisation, promoted by China and probably by India, could in fact sweep change across the region remarkably quickly, Mr Harbison says.



China alone is planning to build 96 new airports. Major investments in airports are also being made in India, Laos, Cambodia and Vietnam. Bangkok is set to get a new airport in September 2005.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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