LOW COST AIRLINES IN SOUTH EAST ASIA: A VIEW FROM SINGAPORE
Abstract
The paper is concerned with the concept and characteristics of low cost airlines which are a well established sector in North American and European civil aviation industries, but a fairly recent phenomenon in South East Asia. Trends within the region are discussed with particular reference to the case of Singapore which has seen an expansion in low cost airline activity. Further growth seems possible and likely, although new entrants are shown to face both opportunities and problems. The Western business model appears to be applicable in a regional context, yet some modifications may be necessary to suit the different conditions in the market and those prevailing more widely.
References
Adam Air. (2005) Who we are. Corporate website at http://www.adamair.co.id, accessed 9 November.
AAPA. (2004) AAPA Annual Report 2004. Association of Asia Pacific Airlines website at http://www.aapairlines.org, accessed 9 October 2005.
ASEAN. (2005) Transport and communicatons. Association of Southeast Nations website at http://www.aseansec.org, accessed 12 October.
Aviation Daily. (2005) Tiger Airways hopes for results from business plan, 2 August.
Barrett, S. (2004a) The sustainability of the Ryanair model. International Journal of Transport Management, 2, 89-98.
Barrett, S. (2004b) How do the demands for airport services differ between full-service carriers and low-cost carriers? Journal of Air Transport Management, 10, pp. 33-39.
The Business Times. (2005) Tiger Airways undaunted by rivals' merger, 29 July.
Calder, S. (2002) No Frills: The Truth behind the Low Cost Revolution. London: Virgin Books.
CAPA. (2004) Low Cost Airlines in the Asia Pacific Region: A Force for Change. Sydney: Centre for Asia Pacific Aviation.
CAPA. (2002) Key findings of the new low cost airline report. November 2002. Centre for Asia Pacific Aviation website at http://www.centreforaviation.com, accessed 10 October 2005.
CNA. (2005) Boeing forecasts US$770b market for new airplanes in Asia-Pacific. Channel News Asia, 8
November. Channel News Asia website at http://www.channelnewsasia.com, accessed 8 November.
Doganis, R. (2001) The Airline Business in the 21st Century. London: Routledge.
Donne, M. (2000) The growth and long-term potential of the low-cost airlines. Travel & Tourism Intelligence, 4, pp. 1-10.
Dow Jones. (2005) Rivalry, oil prices may thin herd of Asia's budget carriers. Dow Jones Newswires, 2 August.
The Edge. (2004) Snapshots of LCCs in Singapore, 22 November.
The Financial Times. (2005a) Need for air traffic control as Asian sky opens up, 24 February.
The Financial Times. (2005b) Jetstar Asia snaps up rival Valuair, 25 July.
Flight International. (2005) Jetstar Asia and Valuair thrash out tie-up plans, 2 August.
Francis, G., Humphreys, I., Ison, S. and Aicken, M. (2005) Where next for low cost airlines? A spatial and temporal comparative study. Journal of Transport Geography, forthcoming.
Francis, G., Humphreys, I. and Ison, S. (2004) Airports' perspectives on the growth of low-cost airlines and the remodeling of the airport-airline relationship. Tourism Management, 25(4), pp. 507-514.
Franke, M. (2004) Competition between network carriers and low-cost carriers: retreat battle or breakthrough to a new level of efficiency? Journal of Air Transport Management, 10, pp. 15-21.
Fullbrook, D. (2005a) Rush to get airborne in Asia's crowded skies. South China Morning Post, 10 August.
Fullbrook, D. (2005b) Budget airlines move to a higher plane. Asia Times Online. http://www.atimes.com, accessed 10 October.
Gillen, D. and Lall, A. (2004) Competitive advantage of low-cost carriers: some implications for airports.
Journal of Air Transport Management, 10, pp. 41-50.
Gillen, D. and Morrison, W. (2003) Bundling, integration and the delivered price of air travel: are low cost carriers full service competitors? Journal of Air Transport Management, 9, pp. 15-23.
Goh, C.L. (2005) Low-cost air travel boom in Singapore. The Straits Times, 5 May.
Hooper, P. (2005) The environment for Southeast Asia's new and evolving airlines. Journal of Air Transport Management, 11, pp. 335-347.
The Independent. (2005) No-frills airlines are accused over safety, 6 October.
IATA. (2005) IATA International Traffic Statistics and Forecasts. International Air Transport Association website at http://www.iata.org, accessed 18 October.
IATA (2004) Keynote address by Prime Minister Goh Chok Tong. International Air Transport Association website at http://www.iata.org, accessed 12 October.
The Jakarta Post. (2000) Time to abolish departure tax, 23 September.
Jetstar Asia. (2005) Corporate website at http://www.jetstarasia.com, accessed 10 October.
Kangis, P. and O'Reilly, M. D. (2003) Strategies in a dynamic marketplace: a case study in the airline industry. Journal of Business Research, 56, pp. 105-111.
Kua, J. and Baum, T. (2004) Perspectives on the development of low-cost airlines in South-east Asia.
Current Issues in Tourism, 7(3), 262-276.
Lawton, T.C. (2002) Cleared for Take off: Structure and Strategy in Low Fare Airline Business. Aldershot:Ashgate.
Lawton, T.C. (1999) The limits of price leadership: needs-based positioning strategy and the long-term competitiveness of Europe's low fare airlines. Long Range Planning, 32(6), pp. 573-586.
Lawton, T.C. and Solomko, S. (2005) When being the lowest cost is not enough: building a successful lowfare airline business model in Asia. Journal of Air Transport Management, 11, pp. 355-362.
Mason, K.J. (2000) The propensity of business travelers to use low cost airlines. Journal of Transport Geography, 8, pp. 107-119.
O'Connell, J.F. and Williams, G. (2005) Passengers' perceptions of low cost airlines and full service carriers:a case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines. Journal of Air Transport Management, 11, pp. 259-272.
Pinkham, R. (2003) The low cost question. Airline Business, 19(12), pp. 29.
Poon, A. (2005) Jetstar unveils code-share deal with Myanmar airline. The Straits Times, 26 October.
The Straits Times. (2005a) Asian airlines won't go under - for now, 14 October.
The Straits Times. (2005b) Air Asia profits double while rest struggle. 27 August.
The Straits Times. (2005c) Low-cost carriers take other routes to success, 22 September.
The Straits Times. (2005d) Valuair: bumpy flight a year after take-off, 5 May.
The Straits Times. (2005e) Tiger is only carrier set for low cost terminal, 23 September.
The Straits Times. (2005f) Tiger Airways aims to fly 3 million passengers next year, 22 September.
The Straits Times. (2005g) Best to fly as two separate carriers - for now, 24 September.
The Straits Times. (2003) Tiger Airways strategy can work, say analysts, 11December.
Strategic Direction. (2003) Ryanair and Southwest play for higher stakes.
Strategic Direction, 19(5), pp. 29-32.
Tae, H.O. (1997) Challenges and opportunities for Asian airlines and governments. In C. Findlay, C., Chia, L.S. and Singh, K. (Eds.) Asia Pacific Air Transport: Challenges and Policy Reforms. Singapore: Institute of Southeast Asian Studies.
Thomas, G. (2002) Asia's absent revolution. Air Transport World, September, pp. 42-47.
Tiger Airways. (2005a) Tiger Airways at a glance. Corporate website at http://www.tigerairways.com, accessed 9 October.
Tiger Airways. (2005b) Tiger Airways is now Singapore's only low fare carrier, says CEO. Press Release, 28 September.
Tiger Airways. (2004) Tiger Airways takes delivery of first aircraft and unveils livery. Press Release, 21 July.
TTG Daily News. (2005) Hong Kong budget airline postpones launch. TTGTravel-Hub Net Daily News, 10 October.
Valuair. (2005) Corporate website at http://www.valuair.com.sg, accessed 10 October.
Wikipedia. (2005) Tiger Airways. Wikipedia website at http://en.wikipedia.org/wiki/Tiger_Airways, accessed 7 October.
Downloads
Published
How to Cite
Issue
Section
License
Manuscript submitted to ASEAN Journal on Hospitality and Tourism has to be an original work of the author(s), contains no element of plagiarism, and has never been published or is not being considered for publication in other journals. The author(s) retain the copyright of the content published in ASEAN Journal on Hospitality and Tourism. There is no need for request or consultation for future re-use and re-publication of the content as long as the author and the source are cited properly.