Budget airlines, new air hubs to “reshape” aviation sector

The growth of low-cost carriers and the rise of new air hubs will continue to reshape the aviation sector in the coming years, says Transport Minister Lui Tuck Yew.

Aviation Leadership Summit 2014 Singapore Air Show

Speaking at the Singapore Airshow Aviation Leadership Summit, Minister Lui Tuck Yew said these two trends will shake up the business and operating models of traditional and incumbent air hubs.

Mr Lui said that the rise of new air hubs is a new trend that has been cast on the aviation landscape. To back this, he stated that  the Middle East, he said in just 10 years, air passenger traffic at Dubai, Abu Dhabi and Doha jumped more than 350 per cent, from less than 26 million in 2003 to 93 million in 2012.

Mr Lui said the pressure will be on governments who have air hub aspirations. He suggested that sufficient capacity on the ground must be ensured in order to meet the increasing demand.