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

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

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

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

5. 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

6. 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

7. 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

8. 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 , 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

9. 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

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

11. 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

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

13. 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

14. 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

15. 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

16. Team Leader – Consulting and Research
Amit Thakran
Team Leader – Consulting and Research