Bubble and trouble

Are the bulging order books of Asia’s LCCs sustainable?

Given the number of single-aisle jets budget carriers across the wider Asian region have on order it is hardly surprising the most common question that pops up is: what are they going to do with them all? It’s a valid query.

Malaysia’s AirAsia has a current order book of 322 Airbus A320 types. Indonesia’s Lion Air has 230 737s on order as well as 234 A320 Family aircraft. During the second half of this year it has added 30 planes and has scheduled some 60 deliveries in 2015, five new aircraft every month. In India, budget Indigo recently added another 250 A320neos (with options on another 100) on top of previous orders for 280 A320s (100 have already been delivered). That’s a staggering 530 single-aisle jets for just one airline.