Re-imagining Gondwana: Can Perth reclaim its status as the place where India meets Australia? 04 July 2018

Re-imagining Gondwana: Can Perth reclaim its status as the place where India meets Australia? Source: CAPA India; Brilliant Maps

Outline of presentation India–Australia air traffic overview and drivers India–WA air traffic overview and drivers Perth as a new gateway to Australia

Outline of presentation India–Australia air traffic overview and drivers India–WA air traffic overview and drivers Perth as a new gateway to Australia

India–Australia is a 1. 3 million pax market, growing at a CAGR of 13 India–Australia is a 1.3 million pax market, growing at a CAGR of 13.2% over the past five years India–Australia annual two-way traffic, 2012–2017 Purpose of travel for Indians visiting Australia, 2017 5 year CAGR: 13.2% Share of traffic by point of sale, 2012–2017 Purpose of travel for Australians visiting India, 2017   2012 2013 2014 2015 2016 2017 CAGR Ex-Australia 67.7% 62.3% 58.6% 56.0% 54.4% 56.1% 9.5% Ex-India 30.0% 34.7% 37.8% 40.6% 41.7% 40.5% 20.7% Source: AirportIS; Tourism Australia; CAPA estimates based on India’s Tourism Ministry data

Non-stop and transfer traffic between India and Australia, 2017 More than 90% of India–Australia traffic is at least one-stop, primarily via SIN (42%), KUL (20%) and BKK (12%) Non-stop and transfer traffic between India and Australia, 2017 Source: AirportIS

Both countries are becoming increasingly important sources of inbound traffic for each other Australia and India’s respective rankings as inbound source markets for each other, 2007–2017 Source: CAPA estimates based on India’s Tourism Ministry data; Tourism Australia

CAPA-Expedia India Outbound Report: Australia was the second highest aspirational destination for travellers in Indian metro cities in 2017 Which destinations do Indians aspire to visit for leisure? In 2017, pure leisure outbound market from India was estimated at 5.4 million CAPA India projects leisure segment will grow at a CAGR of 12.4% to 2025 Forecast of 14 million leisure departures in 2025, generating 20 million arrivals Long haul LCC stimulation could add a further 2 million departures Double-digit growth could sustain for decades Leisure travel to Australia expected to outperform with 14.9% CAGR Rank Metro Non-metro 1 US 2 Australia UK 3 New Zealand 4 France 5 6 Italy Spain 7 Maldives 8 Switzerland 9 Canada Dubai 10 Singapore Source: CAPA India research and analysis; CAPA-Expedia India Outbound Report 2018

Airlines are showing increasing interest in the India–Australia market Air India recently increased weekly frequencies from 7 to 8, plan to increase to 10 Jet Airways is evaluating BOM–SYD service Indian LCCs are keen to expand their international footprint Could test the Australia market with one-stop services, using re-engined NBs IndiGo and SpiceJet planning to induct WBs in 2019 Qantas and Jetstar maintain a watching brief on services to India New sixth freedom options emerging, e.g. Garuda, Philippine Airlines Australia and India signed Open Skies Agreement last month Source: CAPA India research and analysis

Outline of presentation India–Australia air traffic overview and drivers India–WA air traffic overview and drivers Perth as a new gateway to Australia

India–WA is a 130,000 pax market, registering a CAGR of 12 India–WA is a 130,000 pax market, registering a CAGR of 12.6% during the last five years India–WA annual two way traffic, 2012–2017 Purpose of travel for Indians visiting WA, 2017 5 year CAGR: 12.6% Share of traffic by point of sale, 2012–2017   2012 2013 2014 2015 2016 2017 CAGR Ex-WA 64.9% 64.5% 58.8% 58.3% 57.8% 59.6% 8.8% Ex-India 31.7% 31.5% 37.1% 38.0% 36.7% 36.0% 13.6% According to the 2016 census, WA had a population of 68,798 with Indian ancestry Note: Percentages do not add up to 100% as some passengers were ticketed in third countries Source: AirportIS; Tourism Western Australia; Australian Bureau of Statistics

Outline of presentation India–Australia air traffic overview and drivers India–WA air traffic overview and drivers Perth as a new gateway to Australia

Perth as a new gateway to Australia Perth is the only major Australian city within 8–10 hours from key Indian airports Return cycle can be completed within 24 hours Enables efficient scheduling of aircraft Delivers high aircraft utilisation of 18–20 hours on this route Sector length of 8–10 hours is a sweet spot for long haul low cost operations Source: CAPA India research and analysis; Great Circle Mapper

Perth offers efficient routings between India and the East Coast Distance via PER vs. the shortest route via SIN, KUL or BKK Route Difference compared with the shortest route (%) BOM-SYD +3.6% BOM-MEL +0.6% BOM-ADL +1.1% DEL-SYD +6.7% DEL-MEL +3.8% DEL-ADL +4.6% BLR-SYD +2.9% BLR-MEL Shortest BLR-ADL +0.2% Insignificant difference between PER and the current largest transfer points for the India-Australia market Note: SIN, KUL and BKK accounted for 74.4% of the total India–Australia traffic in 2017 Source: CAPA India research and analysis; Great Circle Mapper

With direct connectivity, WA could be repositioned as a standalone holiday destination Direct connectivity would transform the visibility and positioning of WA as a tourism destination WA could develop a marketing campaign repositioning it as a medium haul, rather than a long haul destination from India (currently all of Australia is perceived as long haul) “Australia: it’s not as far as you think” “Australia: it’s only 9 hours away” WA can be promoted as an end destination in itself, for shorter, more spontaneous breaks (it does not have to be part of an overall Australian itinerary). Recent streamlining of Australia visa application process for Indian national facilitates this. But, changing the perception of distance and accessibility of Australia, will also benefit the East Coast Effective marketing, combined with non-stop LCC connectivity, can stimulate leisure demand The tourism market potential is not just India–WA v.v., it is India–Australia via Perth. Perth could capture traffic that currently stops over for a few days in Singapore, Bangkok or KL. Source: CAPA India research and analysis

Team Leader – Consulting and Research Amit Thakran Team Leader – Consulting and Research athakran@capaindia.com