Asia's Budget Airlines Loving Recession

Filed in archive Cheap Ride on February 15, 2009

Low-cost carriers are poised to take advantage of falling fuel costs and increased demand for cheap fares as full-service airlines struggle with a global collapse in consumer demand, according to a recent story by the Associated Press.

Asia's budget airlines have already had a decade of growth and success. As ironic as it sounds, a good recession sends everyone hunting for bargains. And that helps low-fare budget airlines build their market share against the full service flights.

In addition to all the consumers looking for airfare deals, Tiger Airways CEO Tony Davis pointed out that the governments of Asia are all looking for more tourist revenue. Tourism promotions in places like Singapore, Malaysia, and Thailand simple adds to the growth rate of the cut-fare airlines in the region.

"I don't think protectionism will flourish in this market," Davis told the AP. "Progress is being made."


© artonice