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- W159431754 abstract "Low fare airlines (LFAs) have begun to emerge in Asia. However, the long-term survival of the LFAs will depend on their ability to compete with Asia's traditional, full-service airlines. The prevailing sentiment among the Asian majors is that no-frill airlines are not a threat. This paper examines whether such optimism from full-service Asian carriers is based on real factors or if these companies are misjudging the strengths and adaptability of the LFA business model. The paper draws on primary and secondary documentation from Asian, North American and European airlines and associated organizations. In addition, interviews were conducted with a sample of high-level representatives from both full-service and low fare airlines in Asia. Both revenue and costs aspects of the potential for LFA growth in Asia are addressed. The common prediction is that any LFA would have a more difficult time surviving in Asia, where a cost gap between a traditional full-service airline and a potential low cost entrant would be much narrower than in the North American or Western European markets. Our paper aims to understand whether the Asian low fare entrants can offer a consistently lower cost structure and sustain cost advantage relative to the traditional full-service carriers. We argue that the profit and growth potential of Asian LFAs are hampered not just by regulatory barriers but also by the embedded revenue and cost advantages of their full fare rivals. Any merging LFA will find it more challenging to compete with majors that possess such inherent cost advantages, combined with Asia's more flexible hiring practices and labor laws. Two specific Asian LFA case studies are examined in detail: Skymark in Japan and AirAsia in Malaysia." @default.
- W159431754 created "2016-06-24" @default.
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- W159431754 date "2003-07-01" @default.
- W159431754 modified "2023-09-27" @default.
- W159431754 title "LOW FARE AIRLINES IN ASIA: AN EXPLORATORY STUDY OF COST COMPETITION, MARKET DYNAMICS AND SUSTAINABLE ADVANTAGE" @default.
- W159431754 hasPublicationYear "2003" @default.
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