Overcapacity in SEA remains a problem for LCCs in short term
Challenges include inadequate infrastructure, limited airport slots, currency depreciation, softer economic environment
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Nisha Ramchandani
Singapore
LOW-COST carriers (LCCs) in South-east Asia are likely to continue grappling with overcapacity in the short term, although the long-term outlook remains positive, according to a panel discussion at the CAPA Asia Aviation Summit.
CAPA-Centre for Aviation estimates that there are 1,200 aircraft on order from LCCs in South-east Asia. The aircraft on order are mostly for growth, while replacement aircraft are also being upgauged to bigger planes due to slot restrictions in certain airports, thus adding more capacity.
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