Centre for Asia Pacific Aviation predicts the LCC market share in India will reach 70% by 2010, making it one of the world’s leading LCC markets in terms of total market penetration. Given the growth potential of…
Centre for Asia Pacific Aviation predicts the LCC market share in India will reach 70% by 2010, making it one of the world’s leading LCC markets in terms of total market penetration. Given the growth potential of the market and penetration levels already achieved by LCCs, the Centre predicts that within the next five years, India could see the establishment of a home-grown LCC with the size and scale approaching that of easyJet or Ryanair today.
The prediction comes as the Centre prepares to hold its third annual India and Middle East LCC Symposium in Mumbai on 29/30 September 2006.
“The launch of IndiGo in the past few days will keep the market growing strongly in the months ahead”, stated the Centre’s CEO Indian Subcontinent & Middle East, Kapil Kaul.
“Full service carriers are, on average, bleeding a remarkable 1.5 percentage points of market share every month to LCCs. We do not expect this rate to slow in the short term, given the profile of current fleet orders. LCCs could therefore control over 35% of the domestic market by the end of 2006 and pass 50% some time in 2H07. The Indian domestic market has been growing at almost 50% so far this year. The emerging untapped leisure/VFR sector will drive the domestic market to more than double over the next five years (growing at 25% annually) to around 60 million passengers by 2010 – and LCCs will gobble up most of the new traffic growth”, said Mr Kaul.
“But high fuel costs, low yields and congested airport infrastructure pose major risks to the sector going forward and have the potential to place a major strain on airline finances. While we are not predicting a bloodbath, airlines will need to be careful with capacity and ensure they are well funded”, concluded Mr Kaul.
The Symposium will cover issues including international and domestic market prospects, as well as the potential viability of long-haul low cost models serving the Indian Subcontinent region.
Confirmed speakers include:
- AirAsia: Tony Fernandes, CEO
- Indigo Partners: Bill Franke, Managing Partner
- Jazeera Airways: Marwan Boodai, CEO
- Sama: Andrew Cowen, CEO
- Viva Macau: Andrew Pyne, CEO
- Prof Nawal Taneja, Department Chair, Ohio State University
- Centre for Asia Pacific Aviation: Andrew Miller, CEO Consulting
- Centre for Asia Pacific Aviation: Peter Harbison, Executive Chairman
The India & Middle East LCC Symposium 2006 will take place in Grand Hyatt Mumbai between 29-30 September 2006.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
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