Page 12 - AAA APRIL - MAY 2017 Online Magazine
P. 12
FEATURE LOW COST CARRIERS
LCCs that are outside the region’s three there are “currently 25 LCCs based in Asia-
major groups – AirAsia, Jetstar and Lion. Pacific that are not affiliated with AirAsia,
Value and U-FLY members combined Lion, Jetstar or are members of the U-FLY
account for approximately 19 per cent of LCC or Value Alliances. These LCCs combined
capacity in Asia Pacific; this compares with account for approximately 45% of LCC seat
16 per cent for AirAsia/AirAsia X, 11 percent capacity in Asia-Pacific.” And when South
for Lion and percent for Jetstar.” CAPA adds Asia (Indian region) is excluded there are only
that “of the 53 LCCs based in Asia Pacific 18 LCCs in Asia-Pacific that are not aligned.
including India and China, nine are members By stark contrast, of the 21 Southeast Asian
of the Value Alliance and four are members of LCCs, CAPA says only three are not part of
U-FLY. AirAsia/AirAsia X has eight affiliates the Value Alliance or members of the AirAsia,
or subsidiaries while the Lion Group consists Lion or Jetstar groups: they are Garuda LCC
of three LCCs and includes Asia’s second subsidiary Citilink, VietJet and Thai VietJet.
largest (along with two full service airlines), While Garuda’s Citilink cent may not feel
while the Jetstar Group has four subsidiaries the need to align itself because of its very
or affiliates. The consultancy says more strong parent VietJet and its JV Thai VietJet
LCCs likely to join the new alliances. “Both may feel the need to join up. And that need
alliances are expected to grow, with U-FLY was highlighted last year when Taiwan’s
potentially incorporating more airlines from TransAsia suspended operations and shut
China and the Value Alliance incorporating down in November after its LCC subsidiary V
Indonesia’s Lion Air became a new more airlines from the rest of Asia-Pacific. Air ceased operations a month earlier.
Airbus customer with its firm order There will also be increasing bilateral links
for 234 A320 Family aircraft, which between U-FLY members – particularly HK New Entrants
was announced 18 March 2013 and
includes 109 A320neo, 65 A321neo Express – and Value Alliance members,” CAPA But that is not stopping South Korea’s
and 60 A320ceo jetliners said in a client report. According to CAPA already crowded low-cost market getting
12 ASIAN AIRLINES & AEROSPACE APRIL / MAY 2017 WWW.GBP.COM.SG/AAA
