AIRLINES in the Asia-Pacific are experiencing continued growth in passenger traffic over the past year but competition from carriers operating within and outside of the region is intensifying.
Speaking at this year’s Association of Asia Pacific Airlines (AAPA) Assembly of Presidents meeting in Bali, Indonesia, Andrew Herdman, director general of the association, said:” Although the Asia-Pacific region is now well established as the global air transport industry’s largest market, with the highest share of traffic and passengers, the innovative approaches adopted by the region’s airlines in offering a diversity of products and services to the travelling public have resulted in an intensely competitive market.”
Airline leaders in the region are endeavouring to reverse recent declines in profitability, a result of fierce competition among carriers of different business models. Home to many of the busiest air routes in the world, Asia-Pacific sees up to a dozen airlines competing on a single route.
To improve profitability and ensure long-term sustainability, airlines are continuously reviewing their fleet and network development plans in line with evolving market trends.
AAPA’s report shows that passenger traffic in 1H2015 was up by 8.3 per cent to 206.1 million passengers and Asian airlines, whose operating profit was negative US$2.6 billion last year, managed to rebound and record a profit of US$5.2 billion. Yield, however, dipped 10 per cent due to the currency volatility and increased competition the same routes, according to Herdman.
Leaders at the meeting will also be discussing flight safety, among other critical issues. AAPA has taken a notable lead over the past 12 months in actively engaging regulators and industry stakeholders to share lessons on enhanced safety measures. Recent initiatives by the association include two safety management workshops focusing specifically on turboprop aircraft, which often operate into remote airports with limited navigation aids.
