Cheaper by the mile

Are long-haul low-cost airlines here to stay?

Long-haul low-cost carriers (LHLCCs) operate the airline business model of the moment. Some would argue we’ve been here before, with affinity charters (get a group together and travel cheaper), or with Laker’s Skytrain of the 1970s, or indeed numerous other iterations of long-haul charter flights. Today’s LHLCC airlines are pricing their fares low to steal traffic from incumbent carriers on existing routes; but more significantly, they are also stimulating new traffic and opening up new markets. They are being aided by a new generation of fuel-efficient aircraft such as the B787 Dreamliner or the A350, both of which carry fewer passengers than previous wide-bodied aircraft. Less fuel consumption and fewer seats reduce risk when testing new markets. Two companies are taking the lead: AirAsia X operating out of Malaysia in the…

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Business Traveller Asia-Pacific Edition (Digital) - 1 Issue, June 2018

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