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https://nap.nationalacademies.org/catalog/27432/critical-issues-in-transportation-for-2024-and-beyond

ASIA'S ABSENT REVOLUTION : NO-FRILLS AIRLINES ARE FLOURISHING ACROSS NORTH AMERICA AND EUROPE BUT NOT IN ASIA, HOWEVER THAT MAY BE CHANGING

Low-cost airlines have long been unable to penetrate the Asian market for a number of reasons, but that may be changing. Tourism demands and privatization may remove or minimize the barriers that made low-cost carriers stay away. They include complicated restrictions by governments concerned about their country's flag carriers and low profit margins in the region in general. In Japan two challengers for high-volume domestic routes faltered because of the overall economy, price wars and lagging deregulation. Malaysia is more promising with Air Asia, which is succeeding through extensive holiday packages sold over the Internet and through commercial travel networks. But its growth is limited by the government's protectionist policies. The truest low-cost airline is Cebu Pacific, started in 1996, two years after the industry was deregulated in the Philippines. It is based in Cebu rather than Manila and offers prices 15 to 30% below Philippine Airlines. As smaller countries in the region seek to exploit growing tourist demand, there will be greater pressure to permit low-cost carriers to operate more freely.

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  • Corporate Authors:

    Penton Media

    1300 E 9th Street
    Cleveland, OH  United States  44114-1503
  • Authors:
    • Thomas, G
  • Publication Date: 2002-9

Language

  • English

Media Info

  • Features: Photos; Tables;
  • Pagination: p. 42-47
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00934505
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Dec 3 2002 12:00AM