When Being the Lowest Cost is not Enough: Building a Successful Low-Flare Airline Business Model In Asia

The paper's goal is to determine if the low fare airlines (LFAs) are a threat to the full service airlines. Revenue and cost aspects of the potential for LFA growth in Asia are addressed. Another focus is an examination of which Asian countries provide the most favorable market environment for low fare entrants with the least regulatory barriers together with a mobile and open minded consumer population. The paper draws on primary and secondary documentation from Asian, North American and European airlines and associated organizations. In addition, interviews were conducted with a sample of expert witnesses, comprising a representative group of high level managers from both full service and budget airlines in Asia. The analysis of the markets for the Asian LFAs seems to be promising. Many predict that LFAs will tap pent up demand among less affluent Asians who typically travel by bus and hardly expect attentive service. According to a survey by Axess Asia, low fares are the deciding factor in decisions to go or stay home for budget conscious travelers in Southeast Asia.

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  • Authors:
    • Lawton, Thomas C
    • Solomko, Stanislav
  • Publication Date: 2005-11

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01006321
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 12 2005 1:49PM