The environment for Southeast Asia’s new and evolving airlines

The environment for Southeast Asia’s new and evolving airlines

Journal: Air Transport Management

Author: Paul Hooper

Published: 2005

Abstract

A wave of low-cost airlines emerging in Southeast Asia has raised expectations that experiences with low-cost airlines in other major markets will be replicated now in this dynamic region, heralding a new phase of industry development. This paper draws attention to key environmental conditions that will shape the competition including the nature of the region’s markets, market access arrangements, the existing and growing competitive pressures, and the importance of business travel and cargo. The paper concludes that significant departures from the established models of success for low-cost carriers in the US and Europe are likely to be required.

Keywords: Competition; Low-cost; No-frills; Southeast Asia; Strategy; Bundling

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