Tues, August 18 at 1pm ET / 10am PTSponsored By: TripActions
Thurs, August 20 at 11am ET / 8am PTSponsored By: American Express Global Business Travel
Mon, August 24 at 11am ET / 8am PTSponsored By: TripActions
Virtual Event - September 9-10, 2020
Virtual Event - September 14, 2020
Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.
Southeast Asia's largest airlines have
been preparing new, low-cost subsidiaries. Japan's All Nippon Airways and
Malaysia-based AirAsia, the region's largest budget carrier, this month announced
that they plan to jointly launch AirAsia Japan. The new venture in August 2012 would
begin serving domestic and regional routes from Tokyo Narita airport. At the
same time, Australian airline Jetstar, which operates budget services in
Vietnam and Singapore, confirmed it is in talks with Japan Airlines to also
launch a low-cost carrier for the Japanese market.
ANA in May announced plans for another
low-cost operation, called Peach Aviation, to be based in Osaka. Its first two routes
are expected to serve the important business markets of Osaka-Fukuoka in March
2012, followed by Osaka-Seoul in May 2012. ANA has not explained how it will
fit together its two new initiatives.
This past May, Singapore Airlines
revealed plans for a budget airline serving medium-haul and long-haul routes. The
airline said its new operation would use Boeing 777 aircraft. No other details
have been announced.
BCD Travel vice president for supplier
relations in Asia/Pacific Iain Withers said some parts of the corporate market will
take an interest in the new low-cost options. "I expect businesses with unmanaged travel programs to
explore the advantages and disadvantages of low-cost carriers in Asia," he
said. "It is difficult to align LCCs with mature travel programs—including
most large multinational corporations—which have a need for reporting, analysis
and travel policy. Unmanaged programs—which tend to fall in the national,
midmarket and small-to-medium enterprise buckets—focus more narrowly upon cost.
"That said, I
anticipate LCCs in Asia to follow the pattern of predecessors in other more
mature markets, like TAM in Latin America, eventually pursuing long-haul
service that will force changes in distribution and cost strategies,"
Withers continued. "That evolution, along with the tight labor market,
including pilot shortages, will push up LCC costs in Asia/Pacific, which will
eventually level the playing field."
Other indications of
the changing Asian aviation environment include new aircraft orders by low-cost
carriers in the region: AirAsia placed an order for 200 Airbus A320s in June,
while India's IndiGo placed an order for 180 A320s.