|
The new generation of low cost airlines in Asia represent a “remarkable
opportunity” for national carriers, according to the Centre for Asia Pacific
Aviation head Peter Harbison.
At the conclusion of the Centre’s
Asia Pacific Low Cost Airline
Symposium in
Singapore, Mr Harbison says that the incumbent operators are wrong in treating
the low cost emergents as a serious threat.
“It is in fact a remarkable opportunity – once they are able to emerge from the
state of denial which many of them have retreated to,” he says.
“The new low cost, point to point thinking is already helping make complacent
airlines much more efficient – which, by reducing their costs and prices and
improving the airlines’ customer targeting, will help them stimulate traffic growth
well above forecast levels.”
The two-day symposium, which attracted 260 delegates from Australia, Asia,
Europe and the US, discussed the rapid development of low cost airlines
(LCAs) across the region.
Representatives of government, airlines, airports, tourism groups and investors
attended the landmark summit at the Raffles City Convention Centre. It was the
first of three Asia Pacific Low Cost Airline symposiums being organised by the
Centre. The second will be in Macau on April 26 and 27, and third in New Delhi on
a date yet to be fixed.
Mr Harbison says that the initial symposium was a “resounding success”,
focusing interest on probably the most significant development in Asian aviation
for a considerable time.
“Low cost carriers clearly are a catalytic force in the push for regional
liberalisation. They are sure to become increasingly influential in terms of both
airline restructuring and the formation and pursuit of an effective government
aviation policy,” he says.
Mr Harbison says that the major airlines are still in the “box seat”.
Also, in the special nature of the Asia Pacific market, still dominated by
government regulation on international routes, the majors have the box seat in
establishing their own low cost subsidiaries.
In this, they have perhaps a year’s
head start over the independents – the flag
carriers will have first bite at the international routes available under
bilaterals, they have no difficulty in raising adequate funding, they can often rely on the
parent airline’s infrastructure (including aircraft and services) and do not have to
face the usual public doubts affecting independent start-ups.
“And they should take every effort to make the best of that opportunity.” |
