Published on : Tuesday, February 11, 2014
The growth of low-cost carriers and the rise of new air hubs will continue to reshape the aviation sector in the coming years, Singapore’s Transport Minister Lui Tuck Yewm said.Speaking at the Singapore Airshow Aviation Leadership Summit, he said these two trends will shake up the business and operating models of traditional and incumbent air hubs.In Asia, low-cost carriers make up nearly 20 per cent of the aviation market today, up from almost nothing 10 years ago. Within Southeast Asia, budget airlines make up more than half of the intra- Southeast Asia market, an increase from 10 per cent a decade back.
Lui said a second trend which will reshape the international aviation landscape is the rapid rise of new air hubs.Citing the Middle East, he said in just 10 years, air passenger traffic at Dubai, Abu Dhabi and Doha jumped more than 350 per cent, from less than 26 million in 2003 to 93 million in 2012
He said, “Air navigation providers will have to manage more congested skies, with more frequent take-offs and landings. Hub airports will become more congested and more confusing for passengers, necessitating careful planning. Utilisation rates for aircraft will rise, and regulators will need to be more vigilant in ensuring that air travel remains safe.”
Tags: Airline News, Growth of low-cost carriers
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