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LCCs from emerging markets struggle to reach profitability

Temporary Low Cost Travel Cafe Forum Index -> -> News on Low Cost Airlines in Asia

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onebir

Joined: 17 Nov 2007
Posts: 48

Posted: Fri Apr 25, 2008 11:43 am Post subject: LCCs from emerging markets struggle to reach profitability

Looks like a good review of recent events: LCCs from emerging markets struggle to reach profitability

attitudetravel

Joined: 15 Nov 2007
Posts: 301
Location: London, UK

Posted: Sun Apr 27, 2008 8:28 pm Post subject:

An excellent piece - good find.

Quote:

SkyEurope chief executive Jason Bitter believes [...] low-cost carriers have historically attracted more business travellers during recessions.

Possibly. I hadn't thought of that, but, yes it's possible that budget carriers like easyJet and Sky Europe will gain passengers travelling on business, even as airlines like the Czech and Austrian flag-carriers CSA and Austrian Airlines lose them.

As the recession worsens and oil prices stay high I think we will see a number of low cost carriers - essentially those with the weakest business models - fall apart and the better established LCCs go from strength to strength.

What I'm practically certain of is that in today's inter-connected world, people do need to travel, whether for business, personal or family reasons, and when times are tight, they will be more concerned than ever to look for and find the cheapest airfare available, no matter the inconvenience.

In this climate, pioneer class low cost carriers like Ryanair, Tiger Airways and Air Arabia can only thrive. The collapse of Skybus was an anomaly and I'm sure we will see the return of Skybus or airlines like Skybus in the USA. We will not see the return of airlines in the USA like Aloha. Not when people can fly with go! instead.
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Alan Lansdowne
Editor, attitudetravel.com

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