Tiger Air Essay example

600 Words May 23rd, 2016 3 Pages
Question 2
As an ever-expanding company lion air has massive plans for the expansion across Asia. The aviation industry in the Asia-Pacific region has shown robust growth in recent times. The Asian region is the fastest growing region regarding air travel with an average annual seven percent growth of air traffic is expected. As Asia contains some of the largest economies in the world it contains burgeoning lower and middle class that is increasingly using airplanes for domestic and international transport. But take a moment and ask yourself if you were CEO of a multi million-dollar budget airline carrier like lion airline where would you expand? (Engage with the audience) Yeah so you first think of popular travel destinations Japan,
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Recently Narita Airport recently opened a third terminal that is devoted solely to budget airlines but already there is concerns that there is not enough space to hold all the budget airlines. In Japan there has been a number of budget carriers declare for bankruptcy due to high operate cost and high competition like Skymark Airlines who had to fold due to there 71 million yen debt. The surprising attractive market is India. India was the world’s fastest growing aviation market in 2015, expanding more than 20pc as economic growth on the subcontinent picked up.
The country's air travel industry outpaced the 10pc growth registered in China and 5pc increase in the United States, according to International Air Transport Association. Yet from the demand side India looks ideal for budget airlines. It is poor but GDP per head is growing quickly by global standards; and as people become richer, they fly more. India has many big business hubs that can be reached in a couple of hours. But as you might expect infrastructure is the only major concern. But when work finally begins on Mumbai’s second international airport and a decade old plan to build a new airport in Delhi this will mean better air traffic management which will allow existing runways to be used more intensively. Some of India’s 29 states are cutting taxes on aviation fuel to attract the custom that low-cost carriers bring.

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