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Low-cost carriers in Asia: Deregulation, regional liberalization and secondary airports |
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| Authors: | Anming Zhang Shinya Hanaoka Hajime Inamura Tomoki Ishikura |
| Institution: | a Sauder School of Business, University of British Columbia, 2053 Main Mall, Vancouver, BC, Canada V6T 1Z2 b Graduate School of Science and Engineering, Tokyo Institute of Technology, 2-12-1-I4-12, O-okayama, Meguro-ku, Tokyo 152-8550, Japan c Graduate School of Information Sciences, Tohoku University, Aoba 6-6-6, Aoba-ku, Sendai, Miyagi 980-8579, Japan d Center for Sustainable Urban Regeneration (cSUR), School of Engineering, University of Tokyo, Faculty of Engineering Bldg.1, Hongo 7-3-1, Bunkyo-ku, Tokyo 113-8656, Japan |
| Abstract: | While the demand for low-cost air transportation is potentially huge in Asia, development of low-cost carriers (LCCs) lags behind the region's overall aviation development, and certainly lags behind the LCC development in North America and Europe. It has been noted that market conditions and the regulatory environment of Asia are different from those of North America and Europe. What are the main differences here; and how do these differences impact market entry and success of Asian LCCs? This paper describes salient features of Asian LCCs and their developments. It examines the impact of Asia's domestic and international airline regulations and airport infrastructure on the performance of its LCCs. We find that the “Southwest effect” may also exist in Asia and that the development of low-cost terminals may compensate, at least partly, the scarcity of secondary airports in the region. The experiences of Thailand and China are investigated as case studies. |
| Keywords: | Low-cost carriers Deregulation Regional liberalization Secondary airports Low-cost terminals |
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