Transcript Low Cost Airlines influence on ASEAN Aviation Industry

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: 29.0m
GDP per head: $10,050
MAJOR ASEAN AVIATIONS
MARKETS
ASEAN AIRLINES
Indonesia: 1) Air Asia Indonesia 2) Lion Air 3) Mandala Airlines
4) Citilink
 Singapore: 1) Jetstar Asia Airways 2) Scoot Airlines 3) Tiger Airways
 Thailand: 1) Nok Air 2) Bangkok Airways 3) Thai AirAsia 4) Solar
Air
 Vietnam: 1) Jetstar Pacific 2) Viet Jet Air 3) Air Mekong
 Malaysia: 1) AirAsia 2) AirAsia X 3) FireFly 4) Maswings

Founded
2003
Hubs
Singapore Changi Airport
Fleet size
20
Destinations
28
Company slogan
Get The Real Deal
Parent company
Tiger Airways Holdings
Headquarters
Singapore
Key people
Koay Peng Yen
FINANCIAL PERFORMANCE
TIGER AIRWAYS ROUTES
Aircraft
Total
Orders
Airbus A320-200
20
29
Total
20
29
JETSTAR ASIA
Founded
2004
Hubs
Singapore Changi Airport
Focus cities
Kansai International Airport
Frequent-flyer program
Qantas Frequent Flyer
Airport lounge
Qantas Club
Fleet size
22
Destinations
21
Parent company
Newstar
Headquarters
Singapore Changi Airport

Key people

Mr Barathan (Bara)
Pasupathi (CEO)
Mr Choo Teck Wong,
Denis (Chairman)
Achievement & awards

'Best Brand Experience for Low Cost Carrier' by Ad Asia Magazine

'Best Low Cost Airline, Southeast Asia & Asia (2006 & 2008)' -Skytrax
Award
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'Top 10 Airlines by Passenger Carriage (2006 & 2007)' -Changi Airline
Award from the Civil Aviation Authority of Singapore (CAAS)

'Best Asian Low-Cost Carrier (2006 & 2007)' -as well as TTG Travel
Awards
JETSTAR ROUTES
Fleet
Founded
1993
Hubs
Kuala Lumpur International Airport
Commenced operations
18 November 1996
Fleet size
120 (+355 orders)
Destinations
88
Subsidiaries
AirAsia X
Thai AirAsia
Indonesia AirAsia
AirAsia Philippines
AirAsia Japan
AirAsia India
Company slogan
Now Everyone Can Fly
Headquarters
Registered office: Petaling Jaya, Selangor
Head office: Kuala Lumpur International
Airport
Sepang, Selangor
Key people
Tony Fernandez, Co-founder and Director
Aireen Omar, CEO
FINANCIAL & OPERATING PERFORMANCE
In US$ (Millions)
2007
2008
2009
2010
2011
Revenue
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 jointlycontrolled 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
INCOME STATEMENT
ROUTES
SWOT ANALYSIS
Strengths

Low Cost

Expansion/ Customer Service
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One kind of fleet

Booking Sites
Weakness

No proper maintenance / Maintenance facility

Too Much Delays

Accidents, Incidents and Fatalities
Opportunities

Growing Middle Class
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Merge or Collaboration

Open Skies Policy
Threats

Government Intervention/ Corruption

High Fuel Prices
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Certain Charges like Landing fees, security fees, etc
CONCLUSIONS

Huge Population

Growing Middle Class

Tourist Areas
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Sustainability
ADS
QUESTIONS
REFERENCES

AirAsia Bhd. (n.d.). About Us. Retrieved March 18, 2013, from Air Asia : http://www.airasia.com/ot/en/home.page

AirAsia Bhd. (n.d.). Financial Statements for airasia bhd (AIRA). Retrieved March 17, 2013, from Bloomberg Business Week :
http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=AIRA:MK
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Bahari, B. (2013, March 04). Jetstar Asia looks to boost footprint in Malaysia. Retrieved March 17, 2013, from Business Times:
http://www.btimes.com.my/Current_News/BTIMES/articles/JETSTAR/Article/index_html
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Bhasin, B. (2011). Doing Business in the Asean Countries. New York, NY: Business Expert Press .
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Chui, J. N. (2013, January 25). Asian Airlines Slash Fares to Woo Premium Fliers. Retrieved March 17, 2013, from The Wall Street Journal:
http://online.wsj.com/article/SB10001424127887323539804578263132805534080.html
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Daga, A. (2013, January 2). Southeast Asian airlines risk margins with expansion spree. Retrieved March 17, 2013, from Reuters:
http://www.reuters.com/article/2013/01/22/us-southeastasia-airlines-idUSBRE90L09S20130122
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Gangopadhay, A. (2013, February 20). Malaysia's Economy Expands in Fourth Quarter. Retrieved March 18, 2013, from The Wall Street
Journal : http://online.wsj.com/article/SB10001424127887323549204578315583755697530.html
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Haacke, J. (2009). ASEAN's Diplomatic and Security Culture: Origins, Development and Prospects. Routledge; 1 edition (May 16, 2009).
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JetStar Asia . (n.d.). Our Company . Retrieved March 17, 2013, from Jetstar Asia : http://www.jetstar.com/sg/en/home
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Jones, L. (2012). ASEAN, Sovereignty and Intervention in Southeast Asia (Critical Studies of the Asia-Pacific). New York : Palgrave Macmillan
(January 17, 2012).
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Lee, Y. Y. (2011). ASEAN Matters!: Reflecting on the Association of Southeast Asian Nations. Singapore : World Scientific Publishing
Company (April 26, 2011).
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Raghuvanshi, G. (2013, February 5). Asian Budget Airlines Broaden Revenue Streams. Retrieved March 17, 2013, from Wall Street Journal:
http://online.wsj.com/article/SB10001424127887324445904578285472409973906.html

Singapore Department of Statistics . (2013, January 2). Singapore Department of Statistics . Retrieved March 17, 2013, from Ministry of
Trade and Industry Statistics : http://www.singstat.gov.sg/news/press_releases/advgdp4q2012.pdf
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Tajuddin, A. (2012). Malaysia in the World Economy (1824-2011): Capitalism, Ethnic Divisions, and "Managed" Democracy . Lanham, MD: :
Lexington Books (June 14, 2012).
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The Economist . (2011). The world in figures: Countries: Malaysia. The World in 2012 .
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Tiger Airways. About Us . Retrieved March 18, 2013, from Tiger Airways : http://www.tigerairways.com/au/en/about_us.php
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WorldBank. GDP (current US$). Retrieved March 18, 2013, from The World Bank :
http://data.worldbank.org/indicator/NY.GDP.MKTP.CD/countries/SG-MY-TH-BN?display=graph