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Market Infomation
Date:
21/10/2017
Unit:
VND
Code Buying Selling
AUD 17644.92 17909.78
CAD 17893.31 18289.88
CHF 22863.99 23323.66
DKK 0 3662.11
EUR 26660.82 26979.36
GBP 29466.96 29939.38
HKD 2869.76 2933.32
INR 0 362.38
JPY 197.81 201.59
KRW 18.53 20.72
KWD 0 78010.25
MYR 0 5411.64
NOK 0 2896.37
RUB 0 439.81
SAR 0 6280.18
SEK 0 2823.74
SGD 16510.32 16808.6
THB 671.75 699.78
USD 22680 22750
Da Nang 25°C
Hai Phong 22°C
Ho Chi Minh City 25°C
Ha Noi 25°C
Nha Trang 26°C
Pleiku 21°C
Son La 21°C
Vinh 25°C
Viet Tri 25°C
Update :7h - 10/21/2017
2015 Southeast Asia Outlook

LCC growth slows and flag carriers look to restructure but long-term prospects remain bright.


SOUTHEAST ASIA IS A MARKET OF BOTH CHALLENGES AND PROMISE.

2015 will mark the second consecutive year of slower growth and potentially the second consecutive year when most airlines ended in the red. But improving market conditions, lower fuel prices and restructuring effort should at least reduce the losses/migrate to profit and allow new growth.

Southeast Asia has emerged over the last decade as one of the world’s fastest growing emerging markets, capturing the attention of global suppliers. The rapid growth has primarily been driven by fast expansion of LCCs – both independent groups and subsidiaries of full service groups. Meanwhile, flag carrier growth has stagnated.

LCCs already account for almost 60% of seat capacity within Southeast Asia and are rapidly making inroads in the medium-haul market, which will inevitably put further pressure on the legacy operators.

As of 1-Jan-2015, there were 22 LCCs based in Southeast Asia, many of them part of wider groups, including eight within the AirAsia or AirAsia X Groups and four within the Lion Group. Six of the 22 LCCs are affiliated with fullservice groups (Citilink under Garuda; Jetstar Asia under Qantas; Jetstar Pacic under Qantas and Vietnam Airlines; Nok under ­Thai Airways; and Scoot and Tigerair under SIA;).But these LCCs only account for 86 aircraft, or 16% of the total ‰fleet

Overall, Southeast Asia accounts for about 15% of the global order book although the region only accounts for 5% to 6% of the world’s current  fleet. ­there are some legitimate questions surrounding the longterm viability of the region’s order book, particularly the LCC portion,as Southeast Asian FSCs only account for about 400 of the 1600 aircraftorder with a majority being replacements.

But Southeast Asia should still be able to support further rapid growth given its relatively strong economic position and demographics. ­The fundamentals of the market remain favourable, particularly at the bottom end as the continued rise of discretionary incomes means more of the region’s 600 million people can afford to fly – and those that are already flying can aŠfford to fly more often. 2015 could bring some more adjustments to the delivery stream along with consolidation. Capacity cuts by some of the  flag carriers are also likely as they ‰nally start to make some of the diŒcult decisions they have avoided for years. But overall the outlook for Southeast Asia remains relatively bright.

Source: Airline Leader Issue

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