Asian airlines are redefining the global aviation industry as they ride the boom in regional passenger air travel.
The Asia Pacific aviation industry is dramatically reshaping itself. As players seek to respond to regional growth, alliances and new strategies involving partnerships of full service airlines and low cost carriers, are breaking long established moulds and positioning Asia Pacific carriers as global leaders in business model innovation. Existing full service carriers are also set to launch both new premium and low cost brands in a region characterised by diverse markets.
Airline leaders are gathering in Seoul for the 55th Assembly of Presidents of the Association of Asia Pacific Airlines (AAPA) to evaluate the state of the regional aviation sector. Hosted by Asiana Airlines, industry Chiefs will spend two days examining how aviation is changing and where it is headed.
Commenting on the developments, Andrew Herdman, AAPA Director General, said; “The traditional distinctions between full service network carriers, and low cost carriers focusing solely on short haul point to point routes, have become increasingly blurred over time. The recent development of a number of new joint-ventures between traditional carriers and new entrants, seeking to combine their respective strengths and tap new markets is testimony to this trend.”
Participants will also assess risks associated with global economic uncertainty in spite of strong domestic spending, and discuss the impact of soaring fuel prices that have already risen 40% this year. That said, there is abundant optimism about the Asian aviation sector which, according to AAPA, flew a total of 16 million international passengers in September, a 5.4% increase over the same month in 2010.
“Asia Pacific airlines are entering an exciting new phase of development,” said Herdman. ‘[They] continue to take an optimistic view on future growth prospects, which is reflected in ambitious fleet expansion plans, as well as the establishment of a number of new carriers of varying business models.”