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NEWS Last modified on October 24, 2017

Asia-Pacific's airlines continue to flourish despite challenges

Asia-Pacific's airlines remain under pressure in a market characterised by intense competition and robust growth of both passenger and cargo traffic, according to the Association of Asia Pacific Airlines (AAPA).

However, it claims that despite underlying political, economic and security risks, the region's carriers are well-placed to capture the market opportunities in an expanding global economy.

It says that on the back of competitive pricing and service innovations across a wide range of airline business models, international passenger traffic for Asian airlines has grown by 7.9% in revenue passenger kilometre (RPK) terms so far this year. 
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States AAPA: "Improvements in global trade sentiment have delivered a robust 10% growth in air cargo volumes, a welcome development for Asian carriers which account for nearly 40% of global air cargo traffic. 

"Although there has been considerable pressure on yields in a fiercely competitive environment, Asia-Pacific carriers in aggregate are expected to deliver profitability levels similar to last year."

It goes on: "Despite recent yield pressures as a result of intense competition, the region's carriers are continuing to invest in fleet renewals and innovative service offerings including the latest cabin seating and amenities across all passenger segments. 

"Asia-Pacific carriers are also at the forefront of launching new ultra-long haul flights."
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Environmental sustainability continues to be a major focus for AAPA and its members, which welcomed the global agreement for the implementation of the Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA) at the 39th ICAO Assembly in 2016. 

It says: "The air transport industry fully acknowledges its climate change responsibilities, and Asia-Pacific carriers are fully committed to helping the industry achieve the goal of carbon neutral growth from 2020."

In addition to a comprehensive global market-based measure scheme, airlines from the region have already taken action towards meeting fuel efficiency goals, including investing in new generation aircraft technology that offer CO2 emissions reductions, the use of sustainable alternative fuels, as well as operations and infrastructure improvements.

"Air transport is widely recognised as a key contributor to economic development and nowhere is this more evident than in the Asia Pacific region," says AAPA's director general, Andrew Herdman.
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"With the outlook for the world economy remaining positive, AAPA is determined to tackle the numerous challenges that face the region's air transport industry."

AAPA performs a critical role in addressing the key policy issues that affect all carriers in the Asia Pacific region, including safety, security, infrastructure, environment, passenger facilitation, and taxation.


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