NICHOLAS IONIDES / SINGAPORE
Asia-Pacific liberalisation is expected to spark growth in fledgling low-cost airline operations in the region, but no boom as seen in the USA and Europe is likely, according to a new report.
The Australia-based Centre for Asia Pacific Aviation says: "The time may be right for a fundamental change to developmental international routes, leading to exceptional traffic growth in intra-Asian markets, well above forecast levels".
The Asia-Pacific region has only a handful of low-cost airlines, partly as a result of restrictive aviation policies. But the consultancy believes the region may be ready for more, particularly for 3-4h flights. Growing economies and populations are increasing the potential market; congested, expensive hub airports could increase the appeal of under-used regional airports; and changes in government policy could liberalise access to regional airports under the banner of stimulating regional trade.
Asia's low-cost airlines are currently restricted to the more liberal domestic markets of Australia, Japan, Malaysia, New Zealand and the Philippines.
The consultancy suggests that cheap carriers could succeed in other markets, such as South Korea and Taiwan. But it warns that successful US or European low-cost airline concepts could not be directly adopted. And, the consultancy says, there are limited opportunities for low-cost international travel in the region because of regulatory constraints.
"Governments will need to be prepared to reach limited bilateral arrangements to facilitate air travel between secondary airports as supplementary gateways serving urbanising regions and leisure destinations," the Australian report concludes.
Source: Flight International
