Investors Take Fright at Overcapacity in Asian Airline Sector
AIN Air Transport Perspective » February 13, 2012 by Neelam Mathews AirAsia has formed a new budget carrier with ANA called AirAsia Japan. February 13, 2012, 5:39 PM Even as Asia Pacific airlines survived a testing 2011, overcapacity as a result of increased fleet orders is still concerning investors, who are already less willing to finance procurements in the current debt-laden environment. This was the message from Sydney-based thinktank the Center for Asia Pacific Aviation (CAPA) at the Low Cost Airlines Asia summit in Singapore last week. Record aircraft deliveries are under way this year despite the slow growth in traffic. Overall, Asia Pacific airlines have 520 aircraft on firm order for delivery over the next three years, of which 120 are widebodies, with many of the new deliveries additional rather than replacement aircraft. This equ...