FIRE AND ICE AS LOW-COST CARRIERS BATTLE IN THE ASIA PACIFIC

Jetstar Japan aircraft at Tokyo Narita. (Rob Finlayson)

According to Sydney-based CAPA – Centre for Aviation and aviation data provider OAG, low-cost carriers accounted for 29 per cent of all seat capacity within Asia Pacific last year. In Thailand low-cost carriers hold 72 per cent domestic marketshare and 32 per cent of international business. In Indonesia they have 53 per cent domestic and 40 per cent international share. In India, the domestic market share of low-cost carriers  is now 70 per cent and in the international marketplace 23 per cent.

Almost half of the world’s LCC orders are in the Asia Pacific region. Fuel costs are particularly important for LCCs. Aware of the threat, some LCCs have launched their own pilot training academies, including South Korea’s largest budget airline Jeju Air, the AirAsia Group, IndiGo and Indonesia’s Lion Air.

The LCC market is constantly changing. AirAsia X and Singapore Airlines-owned Scoot, for example, have business class cabins in their long-haul widebody aircraft.

It still has a relatively low LCC penetration rate, accounting for only 10 per cent of seat capacity in the Chinese domestic market. In 2008 LCCs accounted for only two per cent of domestic seat capacity in China.

China has a stronger LCC presence in its international market, driven mainly by foreign airlines. Cebu Pacific operates to the Gulf. AirAsia, Cebu Pacific and Korean Air budget subsidiary Jin Air fly to Hawaii. A CAPA report said that long-haul low-cost operations are now well entrenched and progressively developing hybrid models, while retaining the low-cost initiative.

Collected and summarized from the source below by Minh Pham  https://australianaviation.com.au/2019/09/fire-and-ice-as-low-cost-carriers-battle-in-the-asia-pacific/