Low Cost Airlines influence on ASEAN Aviation Industry

By: Faisal Shahim

ASEAN Established on August

8th, 1967 in Bangkok Economic growth, social

progress and cultural advancement

Mutual respect AFTA FAEEC Growing region Important Strategic Region

THE REGION

AUSTRALIA

ECONOMIC DATA

BIG PLAYERS of ASEAN

SINGAPORE GDP growth: 2.7%

GDP: US$ 270.02 billion (2011 estimate)(PPP: $327.557 billion )Inflation: 3.5% Population: 5.37 million GDP per head: $60,900

MALAYSIA GDP growth: 4.4%

GDP: $292 billion (2011 estimate) (PPP: $473bn)Inflation: 2.6%Population: 29.0mGDP per head: $10,050

MAJOR ASEAN AVIATIONS MARKETS

ASEAN AIRLINESIndonesia: 1) Air Asia Indonesia 2) Lion

Air 3) Mandala Airlines 4) CitilinkSingapore: 1) Jetstar Asia Airways 2)

Scoot Airlines 3) Tiger AirwaysThailand: 1) Nok Air 2) Bangkok Airways

3) Thai AirAsia 4) Solar Air Vietnam: 1) Jetstar Pacific 2) Viet Jet Air 3)

Air MekongMalaysia: 1) AirAsia 2) AirAsia X 3) FireFly

4) Maswings

Founded 2003

Hubs Singapore Changi Airport

Fleet size 20Destinations 28

Company slogan Get The Real DealParent company Tiger Airways Holdings

Headquarters SingaporeKey people Koay Peng Yen

FINANCIAL PERFORMANCE

TIGER AIRWAYS ROUTES

Aircraft Total Orders

Airbus A320-200 20 29Total 20 29

JETSTAR ASIAFounded 2004

Hubs Singapore Changi Airport

Focus cities Kansai International Airport

Frequent-flyer program Qantas Frequent Flyer

Airport lounge Qantas ClubFleet size 22

Destinations 21Parent company Newstar

Headquarters Singapore Changi Airport

Key people

Mr Barathan (Bara) Pasupathi (CEO)

Mr Choo Teck Wong, Denis (Chairman)

Achievement & awards 'Best Brand Experience for Low Cost Carrier' by Ad Asia

Magazine 'Best Low Cost Airline, Southeast Asia & Asia (2006 & 2008)'

-Skytrax Award 'Top 10 Airlines by Passenger Carriage (2006 & 2007)' -

Changi Airline Award from the Civil Aviation Authority of Singapore (CAAS)

'Best Asian Low-Cost Carrier (2006 & 2007)' -as well as TTG Travel Awards

JETSTAR ROUTES

Fleet

Founded 1993Hubs Kuala Lumpur International Airport

Commenced operations 18 November 1996Fleet size 120 (+355 orders)

Destinations 88

Subsidiaries

AirAsia XThai AirAsia

Indonesia AirAsiaAirAsia Philippines

AirAsia JapanAirAsia India

Company slogan Now Everyone Can Fly

Headquarters

Registered office: Petaling Jaya, Selangor

Head office: Kuala Lumpur International Airport

Sepang, Selangor

Key people Tony Fernandez, Co-founder and Director Aireen Omar, CEO

FLEET

FINANCIAL & OPERATING PERFORMANCE  In US$ (Millions) 2007 2008 2009 2010 2011

INCOME STATEMENTRevenue 359 945.9 1027 1295 1474

Net total expenses 287 1068 727.8 945 1092

EBIT 71.8 (115) 300 350 381.3

Share of results of jointly-controlled entities

- - - - 12

Share of results of associates - - - - (6)

Profit before taxation 90.8 (284.9) 66.8 360 255

Taxation 48.5 122.9 (38) (12.45) (72.86)

Net profit 139.6 (162.6) 166 348 181.96

ROUTES

SWOT ANALYSIS Strengths

Low Cost Expansion/ Customer Service One kind of fleet Booking Sites

Weakness No proper maintenance / Maintenance facility Too Much Delays Accidents, Incidents and Fatalities

Opportunities Growing Middle Class Merge or Collaboration Open Skies Policy

Threats Government Intervention/ Corruption High Fuel Prices Certain Charges like Landing fees, security fees, etc

CONCLUSIONS

Huge Population Growing Middle Class Tourist Areas Sustainability

ADS

QUESTIONS

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