Sunday, July 09, 2006

Low-cost airlines capture larger share of growth

According to OAG’s latest Quarterly Airline Traffic Statistics, a regular snapshot of airline activity around the world, low-cost operations now represent 13% of global scheduled civil aviation activity, against 12% in July last year and 7% five years ago.
Although growth rates are slower in more mature markets where the low-cost model is well-established, the July 2006 number of low-cost flights worldwide is still 13% higher than a year ago.
World airlines have made more than 290m airline seats available this month on nearly 2.5m flights, the highest July figure for six years and a sign of the industry’s growing confidence.
“Although the actual number of Indian domestic flights is still comparatively small the growth rate is quite remarkable,” says Duncan Alexander, managing director OAG Business Development.
“Of the two major emerging powers, China has been dominating the headlines for some time, but India is catching up fast. With their vast populations, burgeoning economies and rapidly-increasing disposable incomes, these two nations look set to become global aviation powerhouses.”
09/07/06 Ian Watson/Business Online, UK