Aot's Historical Aircraft Movement And Passenger Movement Statistics Bear Out The Same Conclusion: Lccs Traffic Is Growing Rapidly.

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In terms of market share , LCCs in Southeast Asia now account for 56% of seat capacity, versus 32% in 2007. The rise of the middle class in Asia (e.g. McKinsey predicts that proportion of Chinese urban working-age consumers with disposable monthly household incomes upward of $2,100 will grow from 4% in 2010 to 50% by 2030) and the relaxation of visa restrictions in many countries relating to intra-Asia travel are among the various factors that have contributed to the growth of LCCs. AOT's historical aircraft movement and passenger movement statistics bear out the same conclusion: LCCs traffic is growing rapidly. AOT's Don Mueang Airport is the busiest airport in the world in terms of the number of budget airline travelers (22.5 million budget airline travelers in 2015) who pass through the airport every year. The opening of Terminal 2 at Don Muang Airport in December 2015 is a significant boost for AOT, as it increased the airport's capacity to 30 million passengers per year from 18.5 million passenger per year previously, which will allow LCCs to offer new routes and an increased number of flights. Suvarnabhumi Airport currently has a capacity of 45.0 million passengers per year, but actual utilization rates were 52.38 million and 55.47 million in FY2015 and FY2016, respectively. In other words, demand outstrips capacity. Therefore, AOT is executing on its plans to increase capacity to cater to the growth in demand. The current ongoing Suvarnabhumi Development Project is a major project started in June 2012 comprising the installation of aviation-related facilities, passenger terminal works, construction of infrastructure systems among others, which will add an additional capacity of 15 million passengers per year by 2019. AOT also plans to complete the construction of a second terminal at Suvarnabhumi Airport by 2021 for an additional capacity of 30 million passengers per year.

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