New relationships are changing the Asia Pacific’s airline landscape as it enters a new stage of maturity with once-fierce opponents forming partnerships for reciprocal gains. Overcapacity in fleet numbers has fueled competition and compelled budget carriers to look at cooperation initiatives despite the budget airline industry’s penchant to avoid complexity. The 47 budget carriers in the region–with 10 startups to be launched this year–have in hand more than 1,600 fleet orders, with around 1,000 aircraft already in their collective inventory.
“There will be no turning back as the momentum that low-cost carriers have steadily built up in Asia over the last decade continues to gain steam,” said a 2014 report by the CAPA Centre for Aviation, a Sydney-based consultancy. Budget carriers have increased their share from 2 percent a decade ago to 15 percent of the region’s fleet, and “slightly over 20 percent of seat capacity but approximately 50 percent of orders,” said CAPA.
Budget carriers, including Scoot, Jetstar and Tiger Airways, AirAsia, IndiGo and Spring Airlines, are starting to shake the confidence of legacy airlines, but they could go further by collaborating.
08/02/14 Neelam Mathews/AINonline
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“There will be no turning back as the momentum that low-cost carriers have steadily built up in Asia over the last decade continues to gain steam,” said a 2014 report by the CAPA Centre for Aviation, a Sydney-based consultancy. Budget carriers have increased their share from 2 percent a decade ago to 15 percent of the region’s fleet, and “slightly over 20 percent of seat capacity but approximately 50 percent of orders,” said CAPA.
Budget carriers, including Scoot, Jetstar and Tiger Airways, AirAsia, IndiGo and Spring Airlines, are starting to shake the confidence of legacy airlines, but they could go further by collaborating.
08/02/14 Neelam Mathews/AINonline
