Asian low cost carriers plan overseas expansion

New Delhi, May 16 (UNI) A wave of international service announcements confirms overseas expansion is very much on the agenda for Asia's burgeoning low cost carrier (LCC) segment.

Several LCCs are seeking to diversify their traffic bases and to boost aircraft utilisation rates. But all will be in search of higher yields that international services can offer, although their encroachment into these markets will have a depressing effect on fares, which will be of concern to established carriers.

LCCs are responsible for over 56 per cent of additional seats offered within the Asia Pacific region this month, with a startling 3.5 million more seats on 19,000 extra services by LCCs alone compared to May 6.

India and Malaysia domestic markets are the hotspots but the impact is spreading throughout the region like a brush fire.

In Thailand, Nok Air is focusing on India with plans to launch services to Bangalore followed by Chennai and Hyderabad. This is to capture rising demand and boost aircraft utilisation rates by operating back-of-the-clock services across the Bay of Bengal.

The AirAsia Group, ahead of the launch of long-haul services in September, is very much focused on developing its intra-ASEAN network with the Malaysian operation planning to open new routes to Vietnam, Laos and Myanmar in coming months.

More UNI