Asean aviation market to grow significantly
KUALA LUMPUR (Bernama) – The Asean aviation market will grow significantly in the next few years following the development of ‘open skies’ policies in various regions of South-East Asia, an analyst said.
Frost & Sullivan Asia-Pacific, aerospace and defence, consulting analyst, Neil Dave, said considerable increases in infrastructure investment and planned policies will boost air travel and growth.
“Consumers will look to benefit from increased choice of destinations, routes and greater affordability with rising standards of living and cost savings passed down from airlines due to improved efficiency and profit maximisation,” he said in a statement today.
Dave said the demand for a well-knit air travel infrastructure system and the increasing demand for low-cost travel were the main drivers for the implementation of ‘open skies’ policies in the region.
However, the implementation of these policies may adversely affect aviation growth, especially in countries with a developing aviation industry, he said.
“Stiff competition from mature, foreign players may eventually squeeze out smaller players from a developing aviation industry leading to loss of aviation-related jobs,” he said.
Dave said India and China had been experiencing rapid growth in air transport services and domestic aviation infrastructure and were major competitors in the market.
He said other Asean countries will be forced to improve their air transport services across the region to stay competitive.
“The current lack of infrastructure in developing Asean countries to support the change in policy may lead to overcapacity of airports,” he said.
In the long run, Frost & Sullivan predicted that the implementation of ‘open skies’ policies will bring about real and spill-over benefits to various industries.
“The ‘open skies’ agreements will look to boost economic and trade growth,” it said.