More and more countries are relaxing their grip on prices, routes, schedules and airlines. At least three proposed airlines, including the first domestic entrant in 43 years, want to vie with the country's three major carriers.
Major airports lack sufficient gates, and airline fleets are short on seats.
Relief may be on the horizon. At least 14 countries in the region are enlarging airports or building new ones. More terminals and runways will help accommodate the ambitious fleet expansion plans of top carriers, which have more than 800 aircraft on order, says Koriyama Fumitoshi, Asia-Pacific director for the International Air Transport Association. Most of the new jets will enter service early in the next decade. Prices for domestic and international fares remain regulated, although cut-rate fares are more and more widely available.