2007 could be year of low cost long-haul: CAPA

Sydney, Jan 2: The Centre for Asia Pacific Aviation (CAPA) said today that 2007 is shaping up to be one of the most interesting years in aviation development in this region, rivaling 2004.

That year saw the short haul low cost revolution truly arrive in the Asia Pacific with multiple new entrants taking to the skies on the back of increasing liberalisation, said its executive chairman Peter Harbison.

It also saw the introduction of an important innovation for the region -- the cross-border joint venture low cost carriers (LCCs).

''The next phase appears to be extending the model into the region's lucrative long-haul markets,'' he said.

Qantas has moved early by establishing Jetstar on long-haul routes from late 2006 and further integration of its Australian domestic. Singapore's regional and now long-haul operations is firmly on the agenda for 2007.

''Low cost long-haul operations could receive a major boost if the reported plans for the first global low cost airline experiment are revealed, as expected soon from some of the industry's biggest names,'' said Mr Harbison.

AirAsia, Virgin Group and easyGroup are reportedly planning to offer an integrated low cost global network, possibly linking the AirAsia and easyJet short-haul operations in Asia and Europe respectively via a new JV long haul carrier operating from the Kuala Lumpur LCC terminal and possibly London Stansted or Manchester and several other destinations in Asia and the Middle East.

UNI