The slump in global oil prices have helped some of Asia’s largest airlines to return to profit in the recent months, signaling lower fares that could increase demand. The Hong Kong-based Cathay Pacific, this week, said its net profit in 2015 doubled from the previous year. Earlier, Singapore Airlines, another major
The slump in global oil prices have helped some of Asia's largest airlines to return to profit in the recent months, signaling lower fares that could increase demand.
The Hong Kong-based Cathay Pacific, this week, said its net profit in 2015 doubled from the previous year. Earlier, Singapore Airlines, another major carrier in the region, had reported its income in the quarter ending 31 December 2015 as almost double of the same period a year before.
Other airlines, who have been struggling with their bottom lines in the previous years, have also made strong comebacks. Thai Airlines and the low-cost carrier Air Asia were able to return to profit in the final quarters of 2015 from their weak positions earlier.
All this have given rise to speculations of more competition in the industry, and chances of airlines expanding their routes and capacity. In fact, Air Asia's CEO Tony Fernandes had indicated this during a recent interview with the Japanese publication Nikkei, suggesting the airline could fly routes in India, Indonesia, the Philippines, and Japan this year.
For the security industry, such developments offer something to cheer about. Expansion of the airline industry would inevitably require the development of new infrastructure, where security is critical. According to figures released by the Airports Council International (ACI) Asia Pacific, airports in the region saw passenger growth of about 8 percent for the month of December and full year 2015.
In China alone, the number of airports is expected to reach 240 by 2020 from about 200 now, according to a Reuters report. In India, the government recently announced it would invest in developing 160 airports that have already been constructed, but still remain inactive.