Budget air travel catching on in China|Markets|Business|WantChinaTimes.com

Budget carriers in China are gaining growing accpetance among passengers, quietly altering the landscape of China\’s air travel market.

The growing popularity of budget airlines has spawned a number of dedicated airports in Asia, such as the LCCT (Low Cost Carrier Terminal) situated south of Kuala Lumpur. The airport looks more like a bus terminal than an airport, without luxury goods stores, VIP lounges or the other usual outlets and facilities seen at larger airports.

Guangzhou\’s 21st Century Business Review noted that low-cost air travel is catching on in Asia, attracting growing numbers of passengers, especially young people who complain of high air fares and aren\’t overly concerned with service standards. Air Asia, a Malaysian budget carrier, is enjoying booming business in the Chinese market.

\”Even during the period when the SARS epidemic was ravaging Asia, we still saw a high level of demand,\” remarked Siegtraund The Siew Foong, chief commercial officer of Air Asia. Tony Fernandes, Air Asia founder and CEO, said the low-price strategy is effective and enjoys extensive demand in Asia.

A PR official from Air Asia said the airline formulates quarterly marketing plans three to six months in advance, which incorporate weekly marketing drives as well as various incentives tied to the passenger load of flights. Some 20 budget airlines including Air Asia, Tiger Air, Lion Air and Cebu Pacific have become popular names on China\’s travel websites in recent years. Twelve of these are less than 15 years old.

21st Century Business Review noted that more and more passengers have used budget airlines to fly to destinations in Southeast Asia, which has become the major destination for overseas travel for Chinese tourists.

via Budget air travel catching on in China|Markets|Business|WantChinaTimes.com.

Airline Ancillary Revenue Reaches $27.1 Billion — More Than Doubling the 2009 Number

The new 2013 CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany, now available free online, provides the most detailed global assessment of a bottom-line-booster that can represent more than 38 percent of a carrier’s revenue.  The full 80-page report examines 53 airlines that disclosed revenue during 2012 from activities such as frequent flier miles sold to partners, fees for checked bags, and commissions from car rentals.  The complete alphabetical list of carriers is provided in the press release in a carrier-by-carrier table, followed by a graph of ancillary revenue expressed as a percent of total revenue.

via Press Releases | IdeaWorksCompany.

MIDDLE EAST Low cost Carrier rankings and outlook

MIDDLE EAST LCCs ARE NOW ESTABLISHED, but there is still plenty of upside:

by Airline Leader

ALTHOUGH THE LCC MARKET IN THE MIDDLE EAST IS SMALL, it is certainly vibrant and contains several strains of the genre. From the original Air Arabia, still very faithful to its low-cost roots and able to be consistently profitable, through Jazeera and NAS Air to the now-largest, flydubai – the latter now becoming a closer partner with fellow Dubai airline, Emirates.

via http://www.airlineleader.com/regional-focus/middle-east-outlook-1

AirAsia X changes ads after upsetting South Australia

A budget airline has agreed to change some advertising in Adelaide which promoted overseas travel as cheaper than a local trip.

AirAsia X, which will begin direct flights into Adelaide later this year, recently placed some advertisements on the back of local buses which offered flights to Kuala Lumpur for less than the cost of a weekend on Kangaroo Island.

Opposition Leader Steven Marshall described the advertising as a “huge slight on our state” and a slight on local tourism operators.

But Premier Jay Weatherill said it was not a big issue and the company had agreed to change the advertising.

“We certainly have no difficulty with AirAsia X promoting their fares, it’s just how they go about promoting their fares,” Mr Weatherill said.

Read more: http://www.smh.com.au/travel/travel-news/airasia-x-changes-ads-after-upsetting-south-australia-20130820-2s84y.html#ixzz2cWyexib5

via AirAsia X changes ads after upsetting South Australia.