CAPA > Aviation News > South Korean LCC market share up 3.3 ppts, pax exceeds 10 million in 2011

South Korea’s Ministry of Land, Transport and Maritime Affairs stated South Korean LCCs had a total market share of 16.5% in 2011, an increase of 3.3 ppts year-on-year in 2011. According to Yonhap, the Ministry stated South Korean LCCs transported a total of 10.5 million passengers in 2011, an increase of 32.5% and exceeding the 10 million mark for the first time.

---

You may also be interested in the following articles...

• Asia Pacific airlines' "ambitious fleet plans" threaten excess capacity, lower load factors in 2012
  27-Jan-2012

  Asia Pacific airlines are coming off a difficult 2011, thanks to stubbornly high fuel prices and weaker yields in a challenging global economic environment. But not all the problems are necessarily external. Overcapacity is looming as a threat in 2012 as the region's full service airlines gear up for a period of growth and change in the coming decade. Balancing capacity and demand in choppy and unpredictable economic times is not easy and the coming year looks like being one in which at least temporary oversupply is very likely.

  Record aircraft delivery levels are being maintained even as traffic growth slows. The upshot of that combination of factors is lower load factors and reduced yields, made more notable as the finance sector - a key user of premium services - is undergoing sometimes savage staff cutbacks. That in turn implies damage to airlines' bottom lines in what is now an intensely competitive market, with low cost airlines, Gulf carriers and Chinese airlines each vying for larger shares of markets which were historically the territory of the region's flag carriers.

• Asian airline margins being squeezed but are faring better than in other regions: AAPA
  28-Nov-2011

  Airline margins have been “squeezed” in 2011, due to sharply higher fuel prices, according to the Association of Asia Pacific Airlines (AAPA), although the association noted that the region’s airlines are faring better than airlines in other regions as they continue to benefit from relatively strong economic growth in developing economies across the region.

  AAPA, at the 55th Assembly of Presidents in Seoul earlier this month, stated its member 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. The association also cautioned that while strong domestic spending is ensuring key Asian economies remain resilient, there is increasing concern about the possible impact of further financial instability in Europe and the US moving into 2012.