Logistics & Transportation

South Korea - Budget airlines captured over 30% domestic market share

Source: Asia Pulse, 09 October 2009

Industry sources revealed that four South Korean low-cost carriers, Jeju Air Co., Jin Air Co., Air Busan Co. and Eastar Jet Co., saw their share of the domestic market top 30% in the third quarter thanks mainly to their price competitiveness. The carriers had a combined market share of 31.1% in the July-September period, up from 25.8% in the second quarter and 20.8% in the first quarter.

In the third quarter, Air Busan had the top market share of 8.7%, trailed by Jin Air with 7.9% and Eastar Jet with 7.4%. Jeju Air, the biggest budget carrier, saw its market share fall to 7.2% in the third quarter from 8% in the first quarter. Affected by the low-cost carriers' rapid growth, the local market share of the country's two full-service carriers, Korean Air Lines Co. and Asiana Airlines Inc., came to 68.9% in the third quarter.

China - Encouraging foreign & private investment in aviation

Source: SinoCast Transportation Beat, 19 October 2009

China announced in the 2009 China international general aviation meeting summit forum that it encourages overseas capital to set up general aviation companies, and supports the purchase of private aircrafts. The attendants include more than 600 representatives from general aviation companies of such areas as Germany, the US, Canada, Sweden, South Korea, Japan, Denmark, and Hong Kong.

Currently, there have been 88 general aviation companies, 70 general aviation airports, and 3,076 general aviation pilots, including those with licenses for private use. From 2008 to 2017, the demand for general aircrafts will surpass 42,000 around the globe, valued at about US$214.4 billion. China needs a total of nearly 5,000 aircrafts, accounting for 12% of the global total.

Thailand - Govt planning to reduce logistics costs

Source: Thai News Service, 16 October 2009

The Industry Ministry is preparing to launch plans to reduce logistics cost with the aim to increase competitiveness of Thai exporters. Meanwhile, the industrial commission will introduce programs to help businesses reduce their logistics bill. The ministry is working on measures to cut the country's total logistics cost to make Thai manufactures more competitive in the international market.

According to the industry minister, Thailand's logistics cost accounts for around 20% to 25% of the total production cost, compared with an average of 10% for other countries. Meanwhile, the Federation of Thai Industries (FTI) will launch related programs aimed at helping lessen the freight-forwarding cost from 20% to 15% by early next year.

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