AirAsia drives rapid growth at Malaysia’s Johor Bahru's Senai Airport, further encircling Changi

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As Kuala Lumpur's rapid LCC-driven traffic expands, AirAsia has unveiled plans for further expansion at Senai International Airport in the southern Malaysian state of Johor, just across the Causeway from neighbouring Singapore. The LCC group plans to add three international routes from Senai in Jun-2014, giving it six international routes, including five to Indonesia. AirAsia also recently launched its eighth domestic route at Senai.

Senai was the fastest growing airport in Malaysia in 2013 and one of the fastest-growing in Asia, with 44% growth, but off a low base, to 2 million passengers. Senai traffic grew by another 36% in 1Q2014 to 550,000 passengers. AirAsia, which currently accounts for about two thirds of total capacity at Senai, has been the main driver.

While Johor has its own fast-growing market, driven by rapid economic development in the state, it offers competition to some extent with nearby Singapore. The three new international routes at Senai for AirAsia, including two to Indonesia and one to Vietnam, come as the LCC group once again faces roadblocks in expanding its Singapore-Indonesia operation.

Senai was Malaysia’s sixth largest airport in 2013, but the fastest growing

Senai International Airport is the only airport in Malaysia outside the purview of Malaysia Airports Holdings Berhad (MAHB). Senai has been operated by Senai Airports Terminal Services (SATS) since 2003, when control was transferred over from MAHB. SATS has been owned by Malaysian utilities and infrastructure group MMC since 2009.

Senai is about 30km from Johor Bahru, which is Malaysia’s most populated city outside the Kuala Lumpur region and is the capital of Johor state. It is also about 30km from the Malaysia-Singapore border and about 50km from Singapore Changi Airport.

Full analysis: http://centreforaviation.com/analysis/airasia-drives-rapid-growth-at-malaysias-johor-bahrus-senai-airport-further-encircling-changi-164898