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The development of low cost airlines in Asia

The development of low cost airlines in Asia

In recent years, in Asia there have been significant changes in the structure of the transport of passengers on domestic and international routes. There is a significant change in the structure of the fleet companies.

Observed economic growth competitiveness of low-budget transportation (LCC) in many countries in the region. The changes affected many companies. After the collapse of the joint venture ANA-AirAsia, AirAsia Japan is an intensive re-branding companies.

South Korean airline Jeju Air in the course of structural changes to increase their profits on 960% compared to last year. The company achieved the best results out of the market by foreign companies transport legacy and lou-cost carriers, managing to become the third largest company in Seoul Incheon airport after Korea Air и Asiana AirLines.

Asiana AirLinesAsiana AirLines

In Southeast Asia, a large percentage of air travel is carried out by companies using LCC, for many countries in the region this type of transportation reaches 50%, that is, more than half of all seats on flights are sold on conditions of low-cost carriers. Only countries in northern Asia still have an extremely low percentage of LCC traffic and thus provide the greatest opportunity for industry growth.
Passengers from these countries prefer to continue to fly on the provision of the traditional level of service provided during the flight.

Method of building LCC air traffic

There are many misconceptions about the organization of LCC traffic. Firstly, many passengers feel a hundred airline organization of transport, using older aircraft. This is a misconception. Borrowing ticket prices low, companies are making by placing large orders for new aircraft, are dramatically reducing the cost of purchased aircraft.

Airlines using LCC transportation, tend to have only one type of aircraft in its fleet - after the procurement of aircraft manufacturers, given the fact that this kind of acquisition of aircraft, much cheaper.

An example is the airline Jetstar Hong Kong, which is to begin active transport of passengers in 2015 year. Its fleet consists of 18 aircraft Airbus A320-200. In addition to the new aircraft, the company has airliners with an average operating period of which does not exceed 4-5 years.

jet star

Similar rates have airline AirAsia from Kuala Lumpur carrying out low-cost transportation for more than 80 routes. Company fleet consists of 141 aircraft Airbus A 320, with an average operating time, which is less than 3 years.

Competitive carriers

When qualified service maintenance of aircraft at the airport, reducing time spent on the plane "earth", increases the length of time the aircraft in flight. In this way, costs are reduced costs for maintenance of the aircraft. Full-service aircraft takes about 1.5 hours, without compromising the quality of all operations associated with the aircraft.

Companies are looking to schedule that in the same airport was no less 2 flights during the day, thereby achieving a condition in which even the passenger is late for the flight, it has the ability to get to the destination on the same day. In this form the bulk mobility of passengers increased passenger traffic.

Growth Opportunities LCC traffic

Height LCC passenger traffic increases in the region.

Low transportation reduce passenger traffic on flights to the traditional services. Companies are forced to reduce the price of tickets and work with less profitable traffic to use the new business model to enhance their performance.

Low cost transportation in Japan

Japan is the most interesting example of the stagnation of the market of air transportation of passengers. Despite the fact that this is one of the largest aviation market in the world in recent years in Japan, virtually no growth in the number of passenger traffic. However, with the launch of three lou-cost carriers in 2012 year - Peach, Jetstar Japan and AirAsia - there was a growth in domestic passenger traffic for the first time 6 years.

With the knowledge of low tariffs, many Japanese people were able to travel. Domestic passenger traffic increased by 8,7 2014% in the year, this is the best figure for the last 20 years.

peach airline

Taken together with the low-cost traffic increased passenger traffic on 2.6 million. Man on domestic routes, Jetstar and the company is the largest domestic carrier at Tokyo Narita Airport.

Growth in Asian traffic

Air transport will rise sharply in the coming decades. There is a rapid growth of the Chinese economy, which contributes to migration. Improve the living standards of the population, the opportunity to spend holidays in other countries. All of this contributes to the growth of passenger traffic with the use of aircraft.

At the end of the year 2013, the total number of passengers in the Asian region was 1.802 billion..

By 2030, passenger traffic in Asia reached 4.88 billion. Passengers, well ahead of (projected) US 2.367 billion. Passengers.

Southeast Asia already has a high level of LCC traffic about 56% and the growth continues apace.

BERESNEV specifically for Ivan Avia.pro

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