Low Cost vs Full Service Airlines
When Europe were having an economic crisis and having a direct impact to the disruption of aviation markets, in Southeast Asia the Low Cost Carrier (LCC) / Budget are increasingly developed. Budget airlines used to serve only short-to medium flights, but now they have begun to expand long-haul flights.
Development of low cost carrier in Indonesia grows fast as the market society thrives on the very large middle class.
They include Air Asia, the young airline is now getting its wings to countries far from their home country Malaysia until Iran and Japan. There is also Jetstar / Valuair which is an affiliate Low Cost of Qantas which is also expanding its network in Asia Pacific. JAL express is a low cost series from Japan Air Lines (JAL). Scoot and Silk Air are from Singapore Airlines. Firefly and Maswings come from Malaysia Airlines. Tiger Airways is from Singapore and Cebu Pacific is a great player Low Cost from the Philippines.
In Indonesia, it does not want to miss out. No. 1 airline in the country, Garuda Indonesia have been ready to compete in low cost airline market with its new airline Citilink that will soon parted ways with the management of the parent company. The original Indonesia senior LCC airline, Lion Air, will be more aggressive to hook national and regional market after the Boeing aircraft ordered became the biggest record of the purchase. Development of low cost carrier in Indonesia grows fast as the market society thrives on the very large middle class.
However, that does not mean full-service airline could relax, Garuda Indonesia which last yest is the only airline serving the full service in Indonesia, it should be ready because the competition this class will be more fierce. Garuda Indonesia will face new competitors such as the Pacific Royale which has started operation since this early June, as well as Batik Air from Lion Air is scheduled to be launched March next year. In the Southeast Asia markets, Malaysia Airlines and Singapore Airlines which becoming the first five-star airline are also ready to pull the market as much as possible for the Long Haul full service airline.
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