11th March, 2013
ASEAN Aviation Market To Develop Significantly Following
'Open Skies' Policies.
KUALA LUMPUR - The ASEAN aviation market will grow
significantly in the next few years following the development of 'open skies'
policies in various regions of South-East Asia, an analyst said. Frost &
Sullivan Asia-Pacific, aerospace & defence, consulting analyst, Neil Dave,
said considerable increases in infrastructure investment and planned policies
will boost air travel and growth.
"Consumers will look to benefit from increased choice
of destinations, routes and greater affordability with rising standards of
living and cost savings passed down from airlines due to improved efficiency
and profit maximisation," he said in a statement Monday.
Dave said the demand for a well-knit air travel
infrastructure system and the increasing demand for low-cost travel were the
main drivers for the implementation of 'open skies' policies in the region.
However, the implementation of these policies may adversely affect aviation
growth, especially in countries with a developing aviation industry, he said.
"Stiff competition from mature, foreign players may
eventually squeeze out smaller players from a developing aviation industry
leading to loss of aviation-related jobs," he said.
Dave said India and China had been experiencing rapid growth
in air transport services and domestic aviation infrastructure and were major
competitors in the market. He said other Asean countries will be forced to
improve their air transport services across the region to stay competitive.
"The current lack of infrastructure in developing Asean countries to
support the change in policy may lead to overcapacity of airports," he
said.
In the long run, Frost & Sullivan predicted that the
implementation of 'open skies' policies will bring about real and spill-over
benefits to various industries. "The 'open skies' agreements will look to
boost economic and trade growth," it said.
Copyright@BERNAMA
No comments:
Post a Comment