Asia Pacific airline privatisation to take off in 2005/06

Asia Pacific aviation markets have strengthened significantly in 2004, despite the upsurge in fuel costs, creating a highly conducive market for airline privatisation in coming years, barring further unforeseen external events. A wave of major airline privatisations is likely as governments across the region reassess their strategic position on aviation and on airline ownership.

Airline privatisation will be a key theme in the upcoming Asia Pacific & Middle East Aviation & Tourism Outlook 2005 conference to be staged by the Centre for Asia Pacific Aviation (CAPA) in Singapore, 23-25 January 2005. The Second Annual Asia Pacific Low Cost Airline Symposium 2005 will be held immediately after, in Singapore on 26-27 January 2005.

The Centre’s Managing Director, Peter Harbison stated “many governments will seek to take advantage of good market conditions to reduce their holdings in airlines, concentrating policy goals on supporting hub and secondary airports and on feeding tourism infrastructure.

“As airline entry barriers are lowered, private airline entrepreneurs (including several start-up low cost airlines) will also look to quickly realise investment gains during the expected boom conditions over the next 18-24 months. From the Indian Subcontinent to New Zealand, airline privatisation will become a dominant trend in Asia Pacific aviation, alongside increasing liberalisation,” said Mr Harbison.

The Centre has also launched a new initiative – the CAPA Speakers Registry – allowing corporations and governments to register interested speakers online for The Centre’s series of upcoming events. Peter Harbison stated, “with many events planned for 2005, The Centre is pleased to invite our partners to participate in a speaking capacity. We can all learn from each other and The Centre is proud to provide a stage for these exchanges to take place”.

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