Asia a 'relatively bright' aviation market despite slowdown, says study

NEW DELHI: Asia remains a "relatively bright" aviation market despite the recent slowdown, with a fast-expanding middle class providing the launch pad for further growth, a study by an airlines' body said on Thursday.

While China continues to be the largest engine for growth in Asia, other parts of the region were also seeing significant increases in demand for travel with a fast-expanding middle class providing a "brighter outlook" for Asian carriers, the latest study by theAssociation of Asia Pacific Airlines (AAPA) has said.

The outlook for the Asian market "remains relatively bright" for 2013 despite a recent slowdown in traffic growth, challenging conditions in the cargo sector, stubbornly high oil prices and continued economic weakness in Europe, it said.

While it is unlikely that the peak of 2010 would be reached anytime soon, Asia remains a dynamic and generally profitable high growth market that outperforms all other regions, AAPA Director General AndrewBSE -0.72 % Herdman said.

Observing that some Southeast Asian markets like Indonesia were "booming" as income levels rise makingair travel more affordable, he said this was "leading not only to more budget passengers in the regional market but more long-haul passengers, helping offset the weaker demand in Europe".

Of the world's middle class population of 2.1 billion, about 750 million are from Asia, with Herdman saying Asian middle class was expected to grow by 500% over the next 20 years to 3.4 billion.

He said that innovative strategies, which have seen the Asian industry at the forefront of new global partnerships and multi-brand strategies, have also helped Asian full service carriers survive the slump.

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