Asia responsible for 80% of LCC capacity growth: Amadeus

Asia is now the engine of LCC capacity growth across the world and accounts for a gargantuan 80 per cent of all new seats in 1H2013, revealed the latest analysis by Amadeus' Air Traffic solution.

Out of the 35.6 million seats that were added in the first half of 2013, Asia saw 28.9 million more seats come online to total 129.3 million seats. This represents a 28.7 year-on-year increase, the biggest leap in capacity in terms of percentage and absolute numbers.

In second place is the Middle East, where LCC capacity grew 17.7 per cent to inject another two million seats to 13.5 million.

Countries that saw the largest rises in LCC capacity are Indonesia (12.3 million more seats), India (three million), Thailand (two million) and Malaysia (1.8 million). Collectively, the four countries contribute half of global LCC capacity growth in total in 1H2013.

Unsurprisingly, Jakarta saw the strongest absolute leap in LCC capacity by 2.8 million seats or 44 per cent, followed by Bangkok that received 1.2 million more seats or a 30 per cent increase. Tokyo saw the largest change in capacity growth at 178 per cent, but the small base number meant the Japanese capital only witnessed 1.1 million more seats.

Nevertheless London still tops as the city with the largest amount of LCC seat capacity in the world, with 14.8 million seats operating to and from the city.

Brazil’s Sao Paulo trails with 10.8 million seats, followed by Jakarta with 9.4 million and Kuala Lumpur, with 8.2 million.

Jakarta and Kuala Lumpur registered the strongest percentage growth with 44 and 15 per cent respectively.

Alexandre Jorre, LCC specialist for Amadeus, said: “We see a natural boom in LCC capacity across Asia, where point-to-point air travel is largely underserved. However, across the mature markets of Europe and North America capacity is constrained, which may explain why some LCCs are considering new approaches to secure future growth.”
-TTG Asia.