AAPA: Innovative Asia Pacific carriers lead the global industry

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.

Visionary players are finding new ways to co-operate to meet the projected growth in travel demand for both business and leisure traffic. Existing full service carriers are also set to launch both new premium and low cost brands in a region characterised by diverse markets.

Set against this positive sentiment towards future development, AAPA carriers remain extremely vigilant about the immediate threats to growth and profitability associated with a potential slowdown in the global economy and fuel prices that have already risen 40% this year. Strong domestic spending is ensuring that key Asian economies remain resilient, but there is growing concern about the possible impact of further financial instability in Europe and the United States moving into 2012.

AAPA traffic results for September show sustained growth in international passenger traffic, but a slowdown in European and US demand for Asian exports has seen international air freight traffic continue to decline. Asia Pacific airlines flew a total of 16 million international passengers in September, a 5.4% increase over the same month in 2010. However, the demand for international air freight measured in freight tonne kilometres decreased by 6.5% compared to last September.Mr Andrew Herdman, AAPA Director General said, "Asia Pacific airlines are entering an exciting new phase of development, with AAPA destined to play a key role in confronting challenges that need to be addressed if the region's industry is to reach its full potential."

Commenting on the outlook, Mr Herdman said, "Asian airlines 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. 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. As always, the key to success will be efficient execution, regardless of the chosen business model."

Mr Herdman concluded, "Asia-Pacific aviation now represents a quarter of global passenger traffic and over two-fifths of global air cargo traffic. AAPA will continue to speak to governments and other industry stakeholders with a single voice on a wide range of regulatory issues, including safety, security, passenger facilitation, environment and taxation, with the aim of boosting the overall influence of Asia-Pacific carriers in global policy debates."