Kuching: Analysts believe the aggressive expansion strategies of aviation peers has led to overcapacity within Southeast Asia.
The research arm of TA Securities Holdings Bhd (TA Research) said while the rapid emergence of new low cost carriers (LCCs) will see four new entrants – Thai AirAsia X, Indonesia AirAsia X, NokScoot and Thai VietJet Air – joining the fray this year, the bane of overcapacity for the industry came from peers’ aggressive expansion strategies.
These expansion strategies would add 88 new aircraft to bring fleet size to 573 by the end of 2014.
That said, the research arm highlighted that the deferral of seven aircraft delivery in 2014 and 12 in 2015 by AirAsia Bhd (AirAsia) and to swap to A320neo may help to alleviate the problem of excess capacity.
However, it observed that Lion Air Group is by far the concern of overcapacity and competition. Based on Lion Air’s fleet programme, the group is expected to take delivery of 48 new aircraft in which 28 are expected to operate in Indonesia, 12 for its Malaysia affiliate Malindo Air and eight for its Thailand affiliate Thai Lion Air.
10/04/14 The Borneo Post
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The research arm of TA Securities Holdings Bhd (TA Research) said while the rapid emergence of new low cost carriers (LCCs) will see four new entrants – Thai AirAsia X, Indonesia AirAsia X, NokScoot and Thai VietJet Air – joining the fray this year, the bane of overcapacity for the industry came from peers’ aggressive expansion strategies.
These expansion strategies would add 88 new aircraft to bring fleet size to 573 by the end of 2014.
That said, the research arm highlighted that the deferral of seven aircraft delivery in 2014 and 12 in 2015 by AirAsia Bhd (AirAsia) and to swap to A320neo may help to alleviate the problem of excess capacity.
However, it observed that Lion Air Group is by far the concern of overcapacity and competition. Based on Lion Air’s fleet programme, the group is expected to take delivery of 48 new aircraft in which 28 are expected to operate in Indonesia, 12 for its Malaysia affiliate Malindo Air and eight for its Thailand affiliate Thai Lion Air.
10/04/14 The Borneo Post
